This study attempts to empirically investigate the relevance of financial reforms on investment efficiency in two sub-Saharan African countries - South Africa and Tanzania - using vector error-correction mechanism. The study seeks to answer one critical question. Is the mechanism through which...

The paper investigates the relevance of McKinnon's complementarity hypothesis, which gauges the demand for money and physical capital in the finance motive for economic development. Contrary to the results obtained from some previous studies, it was found a strong support for McKinnon's...