West African Economic Monetary Union Research Articles

NEW APPROACH TO PROXIMITY ANALYSIS BETWEEN TWO HORIZONTAL MULTI-TABLES: DSCIA2 METHOD

In this paper, we propose a new method called Dual Simultaneous Co-Inertia Analysis Type 2 (DSCIA2), which is both a new approach to DSCIA in the context of two horizontal multi-tables and Dual of SCIA2 method. The aim is to study the variability of the proximity between pairs of tables with the same variables, by constructing the common axes of representation of the variables and the individuals simultaneously, i.e. constructing in one go an orthogonal matrix containing the solutions. An example of this method consisting being studied of the compared economic evolution of the countries of the Economic Monetary Community of Central Africa (EMCCA) and the West African Economic Monetary Union(WAEMU) is given.

SOLUTION OF NONLINEAR PARTIAL DIFFERENTIAL EQUATIONS BY A DEFORMATION BASED SAWI’S TRANSFORM

In this paper, we propose a new method called Dual Simultaneous Co-Inertia Analysis Type 2 (DSCIA2), which is both a new approach to DSCIA in the context of two horizontal multi-tables and Dual of SCIA2 method. The aim is to study the variability of the proximity between pairs of tables with the same variables, by constructing the common axes of representation of the variables and the individuals simultaneously, i.e. constructing in one go an orthogonal matrix containing the solutions. An example of this method consisting being studied of the compared economic evolution of the countries of the Economic Monetary Community of Central Africa (EMCCA) and the West African Economic Monetary Union(WAEMU) is given.

Linking Budget and Policies: The Case of Ivory Coast

In the case of Ivory Coast, some budgetary reforms have been implemented since 1999 in order to improve the budget allocation and ensure a better translation of development strategies into budget. Unfortunately, taking into account national strategies and policies have not always been the main preoccupation during budgeting. However, the requirements of managing for results bring the fiscal authorities to pay particular attention to the establishment of the link between policies and budgets. Moreover, establishing this link between policies and budget is becoming a major issue since the West African Economic Monetary Union (WAEMU) adopted in 2009 new budgetary reforms to promote performance budgeting. So, this study addresses the issue of linking policies and budgets in the specific case of Ivory Coast. To that end, it focuses on the existing gaps between the budgeting process and policies through the Poverty Reduction Strategy Papers (PRSPs) or simply the National Development Plans (NDPs). The analysis of the current budgeting process shows that the budgeting is not based on the PRSPs and sectoral plans; the integration between planning and budgeting is low, the budgeting is done through a resource-based approach and the medium and long-term budgeting is not established. Moreover, the Parliament has not been involved in the budget process and PRSP elaboration especially in the last years. Only the civil society has been involved in the PRSP elaboration but they are not consulted during the budget process. Therefore, attention should be given to the challenges related to strategic planning, management style and actors to be involved. This must be done through (i) the drafting of sectoral plans based on the NDPs/PRSPs; (ii) the integration between planning and budgeting; (iii) the introduction of a strategic phase and a medium-term perspective to the budget process; (iv) the shifting from a resource-based to a results-based approach; (v) the increase of the involvement of parliament and civil society in the budget process. Further, the MTEF process that started in 2010 should be reinforced through the completion of a Macro-economic framework and a Medium Term Budgetary Framework, a national MTEF to give the ceilings on expenditure to line ministries for a medium and long-term view in order to establish their sectoral MTEFs. Moreover, the public financial management reforms should continue in order to reinforce the budget credibility which is essential in the establishment of good and reliable MTEFs.

The effect of Systematic Risk Determinants on Domestic Investment in West African Economic Monetary Union (WAEMU)

The effect of Systematic Risk Determinants on Domestic Investment in West African Economic Monetary Union (WAEMU)

Determinants of Productive Efficiency of Public Service: What Effect of the Interaction of Corruption Control and Average Wage?

This paper seeks to analyze the determinants of the civil service productive efficiency in West African Economic Monetary Union (WAEMU) countries over the period 2003-2017. Using the two-stage Data Envelopment Analysis (DEA) model, our results show that the average productive efficiency of the public services studied is 87.4%. This suggests that there is room for improvement in the level of output of the public services, all other things being equal. We also found that the average wage, the square of corruption control, and the interaction term between corruption control and the average wage have a positive effect on productive efficiency. These findings suggest that before getting improvement in the productive efficiency of public service in the WAEMU region, countries should reach a higher level of corruption control and a substantial level of the average wage.

Economic Growth and Human Capital Accumulation across Countries: Evidence from WAEMU Region

Development policies often focus on health as human capital and require increased health expenditure in developing countries. This paper analyses the extent to which health expenditure is explained by growth in the West African Economic Monetary Union (WAEMU) zone for the period of 2000–2015. Integrated economies were assumed where an increase in gross domestic product per capita (named income) in one country leads to a change in fiscal revenues and hence public spending in that country (direct effect) as well as neighbouring countries (indirect effect). Spatial econometric models were used to test for the existence and estimate the magnitude of spatial externalities. The panel causality results highlight externalities at the WAEMU regional level. Applying the Hausman test, Akaike information criterion, and Wald test to the data permits estimation of a dynamic spatial Durbin model with individual and time fixed effects. Decomposing the results of the model into both short- and long-term direct and indirect (spillover) effects shows that only the short-term effects were significant. The income elasticity of health spending was equal to 1 for the direct effect of economic growth in WAEMU countries. Therefore, health is a necessity at the country level in the WAEMU zone. Income elasticity was greater than 1 for growth spillover effects. Health is a luxury at the regional level. These findings underscore the need for more involvement of national governments in the health sector to redistribute healthcare resources. In addition, health and growth policies must be coordinated in WAEMU countries.

Does Corruption Increase the risk Premium on the West African Economic Monetary Union (WAEMU) Bond Market?

We study the relationship between corruption and risk premium in West African Economic Monetary Union (WAEMU) market bond. Our sample consists of bonds through a public offering and private placement. For this research data was collected from the stock exchange (Bourse Régionale des Valeurs Mobilières). Number of bonds, average corruption and average spread analysis was used to analyze the data. Most country in WAEMU states has a corruption index below 3.5. The results show that corruption score has negative effects on economic performance indicators and there was a predominance of private placement debt relative to debt through a public offering.