Open AccessFinancial Development, Institutions and Economic Growth in WAEMU Countries
Author(s) -
Abdou Khadre Dieng,
Abdoulaye Camara
Publication year - 2021
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v13n8p40
Subject(s) - cointegration , economics , economic and monetary union , bank credit , panel data , order (exchange) , real gross domestic product , finance , monetary economics , macroeconomics , international economics , european union , econometrics
This paper aims to study the impact of financial development and the institutional environment on economic growth in the countries of the WAEMU (West Africa Economic and Monetary Union) zone. We used a standard growth model like Eggoh (2010) with a cointegration technique on panel data. We used the 2017 World Bank database (World Bank data, 2017).
The results showed that money supply to GDP (M2/GDP), domestic bank credit to GDP (CB/GDP) and regulatory quality (QR) have a positive and significant impact on long-term economic growth. However, the positive effect of respect for law and order is not significant.