Intermédiation financière et croissance économique : une approche basée sur le concept d’efficacité-X appliquée à la zone UEMOA*

Igue, Charlemagne Babatounde

doi:10.7202/1024315ar

Cited by 7 publications

(4 citation statements)

References 52 publications

(27 reference statements)

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“…Dynamic panel models incorporate the lagged value of the independent variable as an explanatory variable in the model. Due to the fact that the current income level may strongly depend on ( 6) the previous income level, we adopt the latter method which solves the problems of simultaneity bias, reverse causality, and omitted variables that weaken the results of previous studies (Igue, 2013). It is also a conceptual way to give more importance to permanent (income) well-being than to current well-being since it incorporates a dynamic dimension considering the understanding of well-being in a life-cycle perspective rather than in a succession of periods as recommended by Servet (2004).…”

Section: Model Estimation Methodsmentioning

confidence: 99%

Financial Inclusion and Income Inequality in Sub-Saharan Africa: Taking Socio-Cultural Particularities into Account

Atadouanla Segning,

Fouopi Djiogap,

Piabuo

et al. 2023

J Knowl Econ

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According to the United Nations 2030 Agenda for Sustainable Development, financial inclusion has a crucial role to play in achieving sustainable development goals in this case, reducing inequalities and reducing poverty. Certain cultures can be at the root of financial system imperfections and therefore influence financial inclusion and its effect on income inequality. This work analyzes the effect of financial inclusion on income inequalities in sub-Saharan African countries, taking into account cultural particularities. The data cover the period from 2002 to 2015 and are analyzed by the dynamic panel method generalized method of moments (GMM). Our overall sample is made up of 27 countries of sub-Saharan Africa grouped into 4 sub-groups: countries with predominantly Christian obedience, countries with obedience dominated by Islam, countries with French as the official language, and countries with English as official language. The first two are distinguished by the fact that Islam forbids interest-bearing savings and loans. The latter two have known different colonial systems which have forged their attitude to public life differently. Our results show that financial inclusion contributes to reducing income inequality in all the SSA countries considered, and also in the Christian-dominated and French-speaking countries. We found no effect of financial inclusion in Islamic-dominated and English-speaking countries. Similarly, we found evidence of an inverted U-shaped relationship in all the Sub-Saharan African countries considered and in Christian-dominated countries only. These results suggest on the one hand that the socio-cultural aspect has an influence on the relationship between financial inclusion and income inequality and the other hand that financial inclusion may be essential to reduce income inequality in SSA countries, but that it is important to tailor it taking into account the cultural, religious, political, institutional, and structural specificities of each country’s economy to have even more significant effects. Given this interference of socio-cultural and political factors on financial inclusion and its effect on income inequality, in addition to ensuring an effective regulatory system and a sound institutional framework, financial and public authorities should capitalize on the cultural and religious fiber to raise awareness on the use of financial products and services in order to improve financial access and its effect on wealth redistribution.

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Section: Model Estimation Methodsmentioning

confidence: 99%

Financial Inclusion and Income Inequality in Sub-Saharan Africa: Taking Socio-Cultural Particularities into Account

Atadouanla Segning,

Fouopi Djiogap,

Piabuo

et al. 2023

J Knowl Econ

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“…Therefore, it is essential to know the reasons for the success of financial reforms in some countries and the causes of failures in others (Igue, 2013) with a focus on competitiveness. Therefore, it is necessary to analyze the effect of the interaction between FD and institutional quality on economic competitiveness by following Coase's (1998) New Institutional Economics (NIE).…”

Section: Short-and Long-run Relationshipmentioning

confidence: 99%

Short- and long-run relationship between financial development and economic competitiveness in WAEMU: does institutional quality matter?

Sigue,

Drabo,

Woni

et al. 2023

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Purpose This paper aims to assess the short- and long-run effects of the interaction between institutional quality and financial development (FD) on the competitiveness of the WAEMU economy over the period 2007–2018. Design/methodology/approach The methodology consisted of cross-referencing a synthetic indicator of FD with indicators of institutional quality and then estimating an auto regressive distributed lag model. Findings The results of the pooled mean group and dynamic fixed effect estimation show a positive and significant impact of this interaction on the competitiveness of the economy in the long run. In the short run, the results are quite similar to those in the long run for the direct effects but different for the crosses. Also, the analysis of country specificity shows that the results are similar to those in the short run since the interaction between FD and institutional quality (political stability and government effectiveness) negatively affects the competitiveness of Burkina Faso, Ivory Coast and Mali, and positively affects the competitiveness of Benin and Senegal. Social implications These results suggest the need for effective policies to improve the quality of institutions to enhance the mobilization of financial resources through FD to ensure the competitiveness of economies. Improving the quality of the political and institutional environment is a prerequisite for economic competitiveness. Originality/value The paper is in line with the New Institutional Economics that developed in the 1970s. This referential framework is a heterogeneous body of work that encompasses works whose common point is the determination of the role of institutions in economic coordination. Unlike previous studies, which have focused on the contribution of the interaction between institutional quality variables and FD on economic growth, this paper analyzes the effects of this interaction on economic competitiveness. It, therefore, constitutes a contribution to this literature and aims primarily to fill this gap.

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“… The ratio of the private sector's nominal credits on the nominal GDP (PCRED) that is chosen as a proxy, to measure the soundness of the financial systems. For developing or underdeveloped countries, it seems that financial advancement would contribute positively to economic growth (Keho, 2012;Eggoh & Villieu, 2013;Igue, 2013).…”

Section: Control Variablesmentioning

confidence: 99%

Is Good Governance Really a Significant Statistical Issue for Current African Economies? The Case of ECOWAS Countries

Baldé¹,

Dicko²

2018

IJEF

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This study examines the triangular relationship between the flows of foreign direct investments (FDIs), public governance as measured by WGIs (Worldwide Governance Indicators) and economic growth in the 15 countries of the Economic Community of West African States (ECOWAS) between 1996 and 2011. The authors conclude that there is a negative relationship between FDIs and economic growth. More importantly, the effect of public governance was analyzed using the estimated coefficients of the variables voice and accountability, quality of regulation, government effectiveness, political stability and absence of violence, rule of law and corruption control, and the results showed that for half of these indicators, governance contributes negatively to the economic growth of ECOWAS countries.

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Intermédiation financière et croissance économique : une approche basée sur le concept d’efficacité-X appliquée à la zone UEMOA*

Cited by 7 publications

References 52 publications

Financial Inclusion and Income Inequality in Sub-Saharan Africa: Taking Socio-Cultural Particularities into Account

Financial Inclusion and Income Inequality in Sub-Saharan Africa: Taking Socio-Cultural Particularities into Account

Short- and long-run relationship between financial development and economic competitiveness in WAEMU: does institutional quality matter?

Is Good Governance Really a Significant Statistical Issue for Current African Economies? The Case of ECOWAS Countries

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