Banks, microfinance institutions and economic growth in the West African Economic and Monetary Union

bibliographic database
Line

Periodical article

Title:	Banks, microfinance institutions and economic growth in the West African Economic and Monetary Union
Authors:	Sodokin, Koffi Donou-Adonsou, Charles
Year:	2010
Periodical:	African Development Review (ISSN 1467-8268)
Volume:	22
Issue:	4
Pages:	495-510
Language:	English
Geographic term:	West Africa
Subjects:	banks credit microfinance small enterprises
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2010.00245.x/pdf
Abstract:	This paper investigates the complementary relationship between commercial banks and microfinance institutions in the West African Economic and Monetary Union (WAEMU) as a means to sustain economic growth. Using panel data on seven of the eight WAEMU countries (Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Senegal and Togo) from 1999 to 2005 with the Feasible Generalized Least Squares and the AR(1) disturbances, the study indicates that the banking and microfinance sectors are prone to operating individually, and that banks benefit from microfinance activities. A joint effort of both sectors in facing credit allocation appears to be very significant over the single action of microfinance institutions. The study, therefore, suggests a joint or complementary approach through savings management to meet the challenge of economic growth in the Union. App., bibliogr., notes, sum. [Journal abstract]