WAEMU Zone Research Articles

Développement financier et transformation structurelle des pays africains de la zone Franc : une approche panel-VAR

The African countries of the Franc Zone are on the margin of the observed industrialization process in several developing countries around the world. This research examines the relationship between the development of the financial sector and the industrialization of African economies in the Franc Zone. A vector auto regressive model (VAR) with errors corrections is used in order to better determine the effects of a financial innovation on industrialization over time. The results show that a shock on bank credit allocated to the private sector has a negative short-term and a positive long-term effect on the manufacturing sector. This negative effect takes longer before easing in the CAEMC (CEMAC) zone compared to the WAEMU (UEMOA) zone. Moreover, the dynamics of the manufacturing sector remains insensitive to the shocks on the monetary aggregate M2 and the inflation.

How Does Public Deficit Affect Public Investment in Senegal?

Purpose: This paper proposes an assessment of the non-linear relationship between public deficit and public investment in debt situation.Methodology: We use an endogenous growth model, with productive public spending, that we test empirically using the interaction model of Brambor et al. (2002), over the period 1980-2015, in Senegal.Results: The results of the estimates show a change in the regime of the relationship between public investment and public deficit for public debt level equal to 80% of GDP. When public debt is below this threshold, any increase in the deficit has an expansive effect on public infrastructure spending. When public debt is above the threshold of 80% of GDP, an increase in the deficit has a recessive effect on public investment.Policy recommendation: An important contribution of this study is to show that the PCSCS implemented in the WAEMU zone cannot register only in a nominal sense to inking with the euro. The budgetary rules laid down in the Stability Pact should be studied in depth. The study would benefit from further study. One of the extensions of this study would be to determine the impact of this debt threshold of 80% on long-term economic growth in Senegal.

Public Health Policies and Economic Growth: Experience of the WAEMU and the CAEMC Countries

Purpose of this study is to analyze the implications of public health policies on economic growth in Sub-Saharan African Countries. From the experience of quite two homogeneous Economic Areas, namely the CAEMC and the WAEMU, we will check up the following hypotheses: The trade-off between Public expenditures in health and Economic growth is positive (ii). The income elasticity in the WAEMU Area is higher than that of the CEMAC Zone. Our method is based on the Panel data technique to compare countries from the CAEMC Area and those from the WAEMU zone on the 1995-2013 periods. It leads to the two following outcomes: On one hand, there is a long run relationship between Government health expenditures and economic growth; on the other hand, the income elasticity in the WAEMU is higher.

Common External Tariff and Dynamism of Economic and Regional Integration in the WAEMU Zone: An Analysis Based on the Econometric Approach of Panels

This article discusses the implications of the introduction of the Common External Tariff on the dynamism of economic and regional integration in the WAEMU zone. The sample includes eight countries and covers the period from 1990 to 2014. The study is based on the econometric approach of panels. The results suggest that the common external tariff has significantly contributed to strengthen the dynamism of the economic and regional integration in the Economic and Monetary Union of West Africa. These results show that the WAEMU countries have an interest in developing new Community mechanisms conducive to strengthen the integration within them. > Transformational leadership does not significantly affect technology transfer effectiveness. tor in Egypt. rsonal authority of the leader; On technology transfer effectiveness.

Optimal Two Hubs Location and Network Construction for a Regional Company of WAEMU Zone

In this paper, the linear integer programming(LIP) was used to model two hubs location problem and network construction for a regional company of WAEMU zone . Taking account of passengers flow and the movements of planes recorded in the airports in the constraints, the model takes into account the rate of filling of the planes, one of the crucial factors for a company to maximize its profit. Minimizing the sum of the distances in the objective, the company makes savings on the fuel and minimizes its costs on aircrew which is remunerated by flight hours.

Liquidity and bank profitability in WAEMU zone: a panel data analysis

This paper examines the impact of liquid assets on bank profitability by using panel data regression through 11 years period (2001 to 2011) for 38 banks in WAEMU. Bank profitability was assessed by both ROE and ROA while liquidity was rated by the share of liquid assets in total assets. Our findings revealed a concave parabolic functional form regarding the relationship between profitability and liquidity by confirming the nonlinear relationship and the assumption that both excess and lack of liquidity may be harmful to banks' profitability. The robustness was tested by resorting to control variables such as size, age and gearing. This led to the revelation of the adverse effects leverage can have on profitability as opposed to how favourable size could impact it. However, age does not influence bank profitability in WAEMU area. The estimated results also showed that the recent financial crisis has not fundamentally impacted the relationship between profitability and liquidity in the WAEMU.