Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy
Most countries of the West African Economic and Monetary Union (WAEMU) experienced a growth acceleration in 2011-17. This paper identifies the determinants of this growth by combining country-specific information with the results of a cross-country...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/121941545063971962/Explaining-the-WAEMU-Growth-Spurt-The-Role-of-Financial-Deepening-and-Macro-Policy http://hdl.handle.net/10986/31077 |
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okr-10986-310772022-05-21T06:14:25Z Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy Haile, Fiseha Moller, Lars Christian ECONOMIC GROWTH MACROECONOMIC POLICY DETERMINANTS OF GROWTH FINANCIAL SERVICES FINANCIAL INCLUSION DEEP INTEGRATION MONETARY UNION PRIVATE INVESTMENT FINANCIAL REGULATION CYCLICAL POLICY INFRASTRUCTURE INVESTMENT PUBLIC DEBT Most countries of the West African Economic and Monetary Union (WAEMU) experienced a growth acceleration in 2011-17. This paper identifies the determinants of this growth by combining country-specific information with the results of a cross-country regression model. Growth was characterized by capital accumulation and driven by structural factors, including financial deepening and infrastructure development. What sets WAEMU countries apart from other African countries is the very sharp increase in private sector credit supporting private investment. This was facilitated by a prudent and accommodative regional monetary policy and improved financial regulation. Pro-cyclical fiscal policies supported public infrastructure investment but led to a buildup of public debt. Going forward, growth may lose some steam, given the renewed policy emphasis on fiscal consolidation and monetary tightening. 2018-12-28T15:41:30Z 2018-12-28T15:41:30Z 2018-12 Working Paper http://documents.worldbank.org/curated/en/121941545063971962/Explaining-the-WAEMU-Growth-Spurt-The-Role-of-Financial-Deepening-and-Macro-Policy http://hdl.handle.net/10986/31077 English Policy Research Working Paper;No. 8675 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Africa West Africa Benin Burkina Faso Cote d'Ivoire Guinea-Bissau Mali Niger Senegal Togo |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH MACROECONOMIC POLICY DETERMINANTS OF GROWTH FINANCIAL SERVICES FINANCIAL INCLUSION DEEP INTEGRATION MONETARY UNION PRIVATE INVESTMENT FINANCIAL REGULATION CYCLICAL POLICY INFRASTRUCTURE INVESTMENT PUBLIC DEBT |
| spellingShingle |
ECONOMIC GROWTH MACROECONOMIC POLICY DETERMINANTS OF GROWTH FINANCIAL SERVICES FINANCIAL INCLUSION DEEP INTEGRATION MONETARY UNION PRIVATE INVESTMENT FINANCIAL REGULATION CYCLICAL POLICY INFRASTRUCTURE INVESTMENT PUBLIC DEBT Haile, Fiseha Moller, Lars Christian Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| geographic_facet |
Africa West Africa Benin Burkina Faso Cote d'Ivoire Guinea-Bissau Mali Niger Senegal Togo |
| relation |
Policy Research Working Paper;No. 8675 |
| description |
Most countries of the West African
Economic and Monetary Union (WAEMU) experienced a growth
acceleration in 2011-17. This paper identifies the
determinants of this growth by combining country-specific
information with the results of a cross-country regression
model. Growth was characterized by capital accumulation and
driven by structural factors, including financial deepening
and infrastructure development. What sets WAEMU countries
apart from other African countries is the very sharp
increase in private sector credit supporting private
investment. This was facilitated by a prudent and
accommodative regional monetary policy and improved
financial regulation. Pro-cyclical fiscal policies supported
public infrastructure investment but led to a buildup of
public debt. Going forward, growth may lose some steam,
given the renewed policy emphasis on fiscal consolidation
and monetary tightening. |
| format |
Working Paper |
| author |
Haile, Fiseha Moller, Lars Christian |
| author_facet |
Haile, Fiseha Moller, Lars Christian |
| author_sort |
Haile, Fiseha |
| title |
Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| title_short |
Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| title_full |
Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| title_fullStr |
Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| title_full_unstemmed |
Explaining the WAEMU Growth Spurt : The Role of Financial Deepening and Macro Policy |
| title_sort |
explaining the waemu growth spurt : the role of financial deepening and macro policy |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/121941545063971962/Explaining-the-WAEMU-Growth-Spurt-The-Role-of-Financial-Deepening-and-Macro-Policy http://hdl.handle.net/10986/31077 |
| _version_ |
1764473551644000256 |