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Article
Publication date: 3 August 2021

Laurent Oloukoi

The paper analyzes the response of agricultural value added to credit and real interest rate shocks in the West African Economic and Monetary Union (WAEMU) and make a…

Abstract

Purpose

The paper analyzes the response of agricultural value added to credit and real interest rate shocks in the West African Economic and Monetary Union (WAEMU) and make a short-term comparative effect analysis of credit granted to the agricultural sector on agricultural value added among member countries.

Design/methodology/approach

First, in order to estimate impulse response functions (IRFs) and study shocks, a panel VAR model is used. Second the paper uses an autoregressive distributed lag (ARDL) model with the associated error correction model to make a comparative analysis of the effect of agricultural credit on agricultural value added in the WAEMU.

Findings

Results shows that: (1) credit stimulates agricultural value added only in the medium and long term; (2) in the case of WAEMU, credit only becomes a means of lifting the constraint of capital underutilization after three years; (3) short-term credit granted to agriculture in WAEMU has a weak and differentiated effect on agricultural value added from one country to another.

Practical implications

It is imperative to implement a policy of lowering real short-term interest rates. Moreover, a monetary policy that favors direct financing of agriculture to the detriment of that oriented toward market financing is to be prioritized.

Originality/value

The originality of this paper is that it makes the link between macroeconomics and agriculture. It shows how the monetary instrument can be manipulated to improve the performance of agriculture. Actually, in WAEMU, the financing of agriculture is provided by the market. This paper proposes a new approach which is direct financing. The paper offers possibilities for the coordination of agricultural policies in the WAEMU.

Details

Journal of Economics and Development, vol. 24 no. 2
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 13 June 2016

Cosimo Magazzino

The purpose of this paper is to assess the relationship among fiscal variables (net lending, government expenditure and revenue) and economic growth in Sub-Saharan African…

Abstract

Purpose

The purpose of this paper is to assess the relationship among fiscal variables (net lending, government expenditure and revenue) and economic growth in Sub-Saharan African countries.

Design/methodology/approach

Using yearly data for the period between 1980 and 2011 in 15 Economic Communities Of West African States (ECOWAS) countries, the relationship among fiscal variables, economic growth and trade is investigated, through various econometric techniques.

Findings

Government expenditure and revenue show pro-cyclical effects in West African Economic and Monetary Union (WAEMU) and ECOWAS countries, while fiscal balance has a pro-cyclical nature for WAEMU during the years 1999-2011. Moreover, a weak long-run relationship between government expenditure and revenue emerge, but only in the case of West African Monetary Zone (WAMZ) countries. Granger causality analysis showed mixed results for WAEMU countries, while for four out of six WAMZ countries (Gambia, Liberia, Nigeria, and Sierra Leone) the “tax-and-spend” hypothesis holds, since government revenue would drive the expenditure. Finally, in the last three decades, cyclical component of economic growth has reduced its fluctuations, both for WAEMU and WAMZ member States.

Originality/value

This is the first study on the effects of fiscal policies in the ECOWAS countries.

Details

African Journal of Economic and Management Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Expert briefing
Publication date: 12 May 2020

West African currency plans.

Article
Publication date: 20 September 2011

Pierre Roche Seka

This study aims to re‐examine the direction of causality between investment and saving in the West African Economic and Monetary Union (WAEMU).

Abstract

Purpose

This study aims to re‐examine the direction of causality between investment and saving in the West African Economic and Monetary Union (WAEMU).

Design/methodology/approach

The study is empirical, testing for Granger causality between investment and saving as well as for other pertinent variables in the determination of the two variables of interest. It uses two methods: co‐integration and decomposition of variances on the one hand, and dynamic panel on the other.

Findings

The use of recent developments in the treatment and analysis of time series data and the inclusion of relevant variables omitted in prior studies help to shed more light on the contradictory results that exist so far. The empirical result is a proof that saving is a real constraint on investment in the financially moderate economies of the WAEMU.

Practical implications

The paper encourages own resource mobilisation for economic growth and development. Ideas generated in the study suggest that financial liberalization per se will not work unless enough flow of domestic savings exists in a country.

Originality/value

It is one of the recent attempts to investigate this issue within a group of African countries operating in an economic and monetary union. The strength of the paper is the use of various econometric methods to address the issue.

Details

African Journal of Economic and Management Studies, vol. 2 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 15 January 2020

Hamadou Boubacar

The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the West African Economic and Monetary Union (WAEMU).

Design/methodology/approach

Using a data set of 266 microfinance institutions (MFIs) for the period 2013–2017, the study assesses the impact of women’s representation in senior management and on the boards of West African MFIs on these institutions’ financial and social performance.

Findings

The results indicate that board size and diversity positively and significantly affect the social performance of MFIs, particularly in relation to women’s participation in decision-making regarding expanding services to poor people. In essence, greater gender diversity at the board and management levels promotes the social orientation of MFIs.

Research limitations/implications

The low representation of women on boards and as managers makes it difficult to more accurately determine the true impact of women in senior positions on MFIs performance.

Practical implications

The author recommends minimum quotas for women in the top management of MFIs. This would help these institutions incorporate key skills and actively involve all members. Also, regulation places constraints on the ability of West African MFIs to mobilize deposits and this negatively impacts their financial performance.

Originality/value

This investigation highlights the importance of including women in the top management of MFIs to improve these institutions’ performance. It also underscores an interesting problem and answers questions raised in the existing literature by either rejecting or confirming the findings. As players in the microfinance sector recognize that board diversity is important for the success of any microfinance institution, this paper helps shed light on the situation of these organizations in the WAEMU.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0365

Details

International Journal of Social Economics, vol. 47 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Expert briefing
Publication date: 25 July 2019

West African franc.

Expert briefing
Publication date: 12 June 2017

Prospects for the West African Economic and Monetary Union (WAEMU)

Article
Publication date: 11 September 2017

William Miles

The purpose of this paper is to investigate whether the proposed eco currency union has sufficient business cycle synchronization among its members to avoid problems such…

Abstract

Purpose

The purpose of this paper is to investigate whether the proposed eco currency union has sufficient business cycle synchronization among its members to avoid problems such as those experienced in the last several years by countries in the eurozone. This monetary union would potentially include 18 countries – Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Republic of the Congo, Cote d’Ivoire, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Mali, Niger, Nigeria, Senegal and Togo – which collectively have a GDP of over 744 billion dollars and a population of over 300 million people.

Design/methodology/approach

The authors will apply some recently created econometric tools that were developed specifically to investigate business cycle synchronization in the eurozone. These tools – denoted synchronicity and similarity – overcome some of the limitations of previous studies which have used vector autoregressions and suffered simultaneity bias as a result.

Findings

The different measures employed suggest that the potential members of the eco exhibit a very low level of synchronization. Nigeria in particular, which is heavily dependent on oil, as are some, but not all potential members, would be the largest member, and exhibits a very low level of synchronization with other prospective eco member nations. Finally, preliminary evidence from several countries which have joined the existing African currency unions does not indicate that the act of joining a currency union improves synchronization, and this result contradicts the “endogenous optimal currency area” hypothesis.

Research limitations/implications

Like previous studies on the topic, the authors rely on the available data. The number of observations is more limited than would be optimal.

Practical implications

The results would strongly caution against the creation of the eco currency union, as members appear even less ready for monetary integration than countries in the eurozone did.

Originality/value

This is the first study to apply the synchronicity and similarity tools to the prospective West African eco nations.

Details

Journal of Economic Studies, vol. 44 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 1 October 2015

Bill B. Francis, Iftekhar Hasan and Eric Ofori

This paper investigates the impact of the development of capital markets on economic growth in Africa and reports a significant increase in real GDP per capita after stock…

Abstract

This paper investigates the impact of the development of capital markets on economic growth in Africa and reports a significant increase in real GDP per capita after stock exchanges are established. This paper also reveals that there are significant improvements in the level of private investments in the post stock market launch era. The results also indicate that stock markets play a complementary role to the banking sector by contributing to the availability of private credit. Although African capital markets are relatively less advanced when compared to capital markets on other continents (particularly in terms of technology, structure, and liquidity), we find that their establishment has been crucial in helping African countries catch up with the rest of the world.

Details

International Corporate Governance
Type: Book
ISBN: 978-1-78560-355-6

Keywords

Expert briefing
Publication date: 25 June 2018

Ivory Coast economic update.

Details

DOI: 10.1108/OXAN-DB235603

ISSN: 2633-304X

Keywords

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