Regional financial integration and inclusive growth in African franc zone countries

Alain Biakolo Onana (), Xaverie-Euphemie Okah Atenga (), Mohaman Gabdo Tamboutou () and Bmermoz Homere III Nsoga Nsoga ()
Additional contact information
Alain Biakolo Onana: University of Yaounde II
Xaverie-Euphemie Okah Atenga: University of Yaounde II
Mohaman Gabdo Tamboutou: University of Yaounde II
Bmermoz Homere III Nsoga Nsoga: University of Yaounde II

Economics Bulletin, 2022, vol. 42, issue 3, 1230 - 1248

Abstract: The objective of this paper is to empirically determine the impact of regional financial integration on inclusive growth for the 15 African countries of the franc zone. To achieve this, we first proceed methodologically to construct the inclusive growth index that takes into account the informal sector by adopting the principal component analysis and the composite index calculation technique. Then, through recent econometric developments such as: ordinary least squares (OLS), double least squares (DLS), we establish the impact of RFI on this inclusive growth index between 1995 and 2015. The main results show that the low level of regional financial integration has a negative effect on the inclusive growth of the LICs despite the inclusion of the informal sector. However, although the capital account is liberated, negative inclusive growth is still observed. These results therefore provide a major basis for governments to ensure not only the improvement of the quality of institutions, particularly government efficiency and regulation, but also the implementation of policies aimed more at fostering regional financial integration in order to achieve more inclusive growth.

Keywords: Regional Financial Integration; Inclusive Growth and Franc Zone. (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Date: 2022-09-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I3-P104.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-22-00201

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().