Effects of financial inclusion on inclusive growth in West African Economic and Monetary Union countries (WAEMU)

Authors

  • Khady DIAW Chercheure
  • Ndiack FALL Professeur agrégé en Sciences économiques, Université Cheikh Anta Diop de Dakar, Sénégal

DOI:

https://doi.org/10.59051/joaf.v13i2.593

Keywords:

Inclusive growth, financial inclusion, ARDL model, Dynamic threshold panel model, WAEMU

Abstract

Objective: This paper aims to analyze the effects of financial inclusion on inclusive growth in the countries of the West African Economic and Monetary Union (WAEMU). 

Methodology: two methodological approaches are used, namely the AutoRegressive Distributed Lag (ARDL) model (Pesaran, 1999) and the dynamic threshold effect error-correction panel model (Kremer and al., 2013). In addition, the Dumitrescu and Hurlin (2012) causality test is used to determine the direction of causality.

Results: First, the results show that there is a unidirectional causality from financial inclusion to inclusive growth. Second, financial inclusion has a positive effect on inclusive growth in the long run and an inverse effect in the short run. Finally, the optimal threshold for financial inclusion to achieve inclusive growth in the WAEMU is 0.46.

 

Originality: the originality of this research lies in the methodologies used (ARDL and the dynamic panel with threshold effect and error correction) and in the disaggregation of the financial inclusion index constructed according to three levels in order to see their effects on inclusive growth. This research may enable the BCEAO

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Author Biographies

Khady DIAW, Chercheure

Khady DIAW is a PhD student in the laboratory of economic and social policy analysis at Cheikh Anta Diop University in Dakar. Khady DIAW is a doctoral student in the PhD programme of the Interuniversity Postgraduate Programme (PTCI). Mrs. DIAW is in charge of supervised work at the Cheikh Anta Diop University of Dakar. She was a candidate (2022) in the third edition of the training programme for young Francophone economists (FORJE) initiated by the Observatoire de la Francophonie Economique (OFE) which took place in Lomé (Togo). In terms of research, his interests lie in the areas of inclusive growth, financial inclusion, poverty, income inequality, entrepreneurship etc. 

Ndiack FALL, Professeur agrégé en Sciences économiques, Université Cheikh Anta Diop de Dakar, Sénégal

Research professor at the Cheikh Anta Diop University in Dakar, Senegal. Ndiack FALL is an associate professor of Economics. He is the current Director of the Cooperation Department of the Cheikh Anta Diop University of Dakar. 

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Published

2022-12-30

How to Cite

DIAW, K., & FALL, N. (2022). Effects of financial inclusion on inclusive growth in West African Economic and Monetary Union countries (WAEMU). Journal of Academic Finance, 13(2), 56–76. https://doi.org/10.59051/joaf.v13i2.593

Issue

Vol. 13 No. 2 (2022): Fall 2022

Section

Articles

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Copyright (c) 2022 Khady DIAW, Ndiack FALL

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