Financial stability and entrepreneurship development in sub-Sahara Africa: Implications for sustainable development goals

Figures & data

Table 1. Description of variables, data sources, measurements, with justification and a priori expectation

Variable description	Type/Source/Measurement	Literature justification	‘Parameter’s a priori
NBR-New businesses registered (number)	Secondary/World Bank/ Composite Index	Entrepreneurship Survey and database, World Bank Group. (http://www.doingbusin ess.org/data/exploretopi cs/entrepreneurship). García (2014), Klapper and Love (2010)
FINSI = Financial Stability Indicator	Secondary/World Bank/ Composite Index	Monetary and Capital Markets Department, International Monetary	>0
		Fund. Nelson and Perli (2005), Sere-Ejembi et al. (2014), Isac B., Nelson and Perli (2005)
Governance	Secondary/World Governance Indicators(WGI), Kaufmann and Kraay 2019:www.govindicators.org/consisting of regulatory quality; the rule of law, governance effectiveness	Kaufmann et al. (2009), Fayissa and Nsiah (2013), Liu et al. (2018)	>0
GDP per capita	Secondary/World Bank/World Development Indicator	Carree et al. (2002), (Carree et al., 2007).	>0
PSE—Primary School Enrolment	Secondary/World Bank/World Development Indicator	Kolstad and Wiig (2015), Karlan and Valdivia (2011)

Source: “Authors” Synthesis (2020)

Table 2. Illustration of the effect of financial stability on entrepreneurship development in selected African countries

	Pooled OLS	P>/t/	Random Effect	P>/t/	GEE Effects	P>/t/
LnFINSI	20.7638***(6.99695)	0.004	20.7638***(6.99695)	0.003	17.5223***(2.69334)	0.000
LnGOV	−0.4390* (0.24794)	0.081	−0.4390* (0.24794)	0.077	−0.0609 (0.20274)	0.764
LnGDPPC	−19.2055***(6.8195)	0.006	−19.2055***(6.8195)	0.005	−16.1813 (2.70508)	0.000
LnPSE	0.1505 (0.13686)	0.275	0.1505 (0.13686)	0.272	0.1982*** (0.12521)	0.114
SAR	1.3762 (1.33580)	0.306	1.3762 (1.33580)	0.303	−0.1027 (1.14970)	0.929
EAR	0.4832*** (0.13736)	0.001	0.4832*** (0.13736)	0.000	0.4798*** (0.12552)	0.000
CAR	−0.4262 (0.85580)	0.620	−0.4262 (0.85580)	0.618	0.55054 (0.73224)	0.452
WAR	2.8164 (2.15133)	0.195	2.8164 (2.15133)	0.190	0.7591 (1.87630)	0.686
F(8, 74) = 16.59; prob.> F = 0.000; R-Squared = 0.6420 Adj R-squared = 0.6033			Wald Chi^2(8) = 132.71 Prob.>Chi^2 = 0.0000		Wald Chi^2(8) = 318.88 Prob.>Chi^2 = 0.0000

Source: E-views output, 2020

**-Standard errors in parenthesis, ***p < 0.01 **p < 0.05 *p < 0.10, LnFIS—the logarithm transformation of financial stability, LnGOV- the logarithm transformation of governance, LnGDP- the logarithm transformation of GDP per capita, LnPSE- the logarithm transformation of Primary school enrolment. SAR is a South African region; EAR is the East Africa region, CAR is the Central Africa region, and WAR is the West African region.

Table A1. Hausman test result

Variables	Fixed(b)	Random(B)	Difference (b-B)	Std. Error
LnFIS	22.11651	20.76375	1.35276	8.241032
LnGOV	−0.4163261	−0.4390451	0.022719	0.143104
LnGDPPC	−20.527070	−19.205520	−1.321546	8.01317
LnPSE	0.1562107	0.150471	0.057397	0.0618469
SAR	1.417191	1.376182	0.041084	0.4648774
EAR	0.4987414	0.4831867	0.0155547	0.0593064
CAR	−0.4429503	−0.4261831	−0.0167672	0.2980824
WAR	2.916095	2.816438	0.0996565	0.7352889
chi^2(8) = 0.09; Prob>chi2 = 1.0000

Source: E-views output, 2020

Table A2. The Breusch and pagan lagrangian multiplier tests result

	Var	sd = sqrt(Var)
Lnnbr	2.888484	1.699554
E	1.264199	1.124366
U	0	0

Source: E-views output, 2020Test: Var(u) = 0; chi²(1) = 3.64; Prob > chi² = 0.056

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