Journal of Finance and Investment Analysis

Non-linear finance–growth nexus in WAEMU Countries : Evidence from Quantile Regression

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  • Abstract 

    This article examines the impact of financial development on economic growth in 7 UEMOA countries. Unlike previous studies that focus on average effects, it uses a quantile regression methodology to examine whether the effect of financial development on economic growth is the same for countries at all levels of economic development. The results highlight that financial development is more conducive to economic growth in countries with higher living standards.  In addition, economic openness benefits countries with a high standard of living more.  Civil liberties have a positive impact on the economic growth of the countries in the area. The study also concludes that investment has a negative impact on economic growth in WAEMU countries.

    JEL classification numbers: C13, C21, O11, O16, O40.
    Keywords: Financial Development, Regional Economic Growth, WAEMU