Financial Deepening Dynamics and Implication for Financial Policy Coordination in a Monetary Union: the case of WAEMU

Christian Nguena and Tsafack Nanfosso Roger ()
Additional contact information
Tsafack Nanfosso Roger: Econimic Policy Management Program

No 13_005, AAYE Policy Research Working Paper Series from Association of African Young Economists

Abstract: This article aims to investigate the implication of financial deepening dynamics for financial policy coordination in the WAEMU sub-region. For this purpose we adopted a hypothetical-deductive theoretical approach and an empirical investigation in bothstatic and dynamic panel data econometrics that has allowed us to identify some stylized facts on this issue and have led to the following global recommendations based on our empirical investigation: The converging dynamics is evident in the sub-region and implies that after five years, financial policies harmonization would have an optimal impact; This highlights the feasibility of common effectiveness monetary policy targeting indirectly financial depth in the sub-region; However member states should work within five years towards harmonizing cross-country differences in structural and institutional characteristics that hamper the effectiveness of financial policies. Especially they should implement a financial policy whose mainly aim to increase the level of savings rate, GDP per capita growth rate and density and reduce the level of reserves in the sub-region.

Keywords: Economic convergence; Financial deepening; Panel data econometrics; WAEMU sub-region; Principal component analysis (search for similar items in EconPapers)
JEL-codes: E44 F15 F36 F42 G10 O16 O50 P52 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2013-07, Revised 2013-11
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://aaye.org/dmdocuments/AAYE_PR_WPS_N5.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aaye.org:80 (This is usually a temporary error during hostname resolution and means that the local server did not receive a response from an authoritative server. )

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:aay:wpaper:13_005

Access Statistics for this paper

More papers in AAYE Policy Research Working Paper Series from Association of African Young Economists Contact information at EDIRC.
Bibliographic data for series maintained by Christian-Lambert Nguena ( this e-mail address is bad, please contact ).