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Short-Versus Long-Term Credit and Economic Performance :, Evidence from the WAEMU, Kodzo Gbenyo, Kangni Kpodar

Label
Short-Versus Long-Term Credit and Economic Performance :, Evidence from the WAEMU, Kodzo Gbenyo, Kangni Kpodar
Language
eng
Abstract
This paper studies the link between financial development and economic growth in the West African Economic and Monetary Union (WAEMU). Using panel data for WAEMU countries over the period 1995-2006, the results suggest that while financial development does support growth in the region, long-term bank financing has a greater impact on economic growth than short-term financing because long-term projects have higher returns adjusted for risks. Given that in the WAEMU short-term credit accounts for about 70 percent of credit to the private sector, WAEMU countries are less able to reap the full benefits of improvements in their financial systems. The results also highlight the importance of macroeconomic stability, a creditor-friendly environment, political stability, and the availability of long-term financial resources in fostering banks’ supply of long-term loans
Bibliography note
Includes bibliographical references (p. 20-21)
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
Short-Versus Long-Term Credit and Economic Performance :
Nature of contents
dictionaries
Oclc number
867927129
Responsibility statement
Kodzo Gbenyo, Kangni Kpodar
Series statement
IMF Working Papers
Sub title
Evidence from the WAEMU
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Theoretical Background; III. Stylized Facts; 1. WAEMU: Financial Development and Economic Growth, 1989-2006; 2. WAEMU: Share of Short-Term Credit in Total Credit and Economic Growth, 1995-2006; IV. Empirical Estimations; A. Models and Data; B. Methodology and Results; 1. WAEMU: Impact of Short and Long-Term Credit and Economic Growth; 2. WAEMU: Impact of Short- and Long-Term Credit on Economic Growth, System GMM Estimates; 3. WAEMU: Impact of Short- and Long-Term Credit on Economic Growth-A Panel Cointegration Approach4. WAEMU: Determinants of the Share of Long-Term Credit in Total CreditV. Conclusion and Policy Recommendations; 1. Panel Unit Root and Cointegration Tests; A1. WAEMU: Selected Financial Soundness Indicators, 1995-2006; A2. WAEMU: Trend in Private Credit over GDP, 1989-2006; A3. WAEMU: Short and Long-Term Credit as a Share of Total Credit, 1989-2006; A4. WAEMU: Sectoral Shares in GDP and Credit to Private Sector; 2. Summary Statistics and Correlation Matrices; 3. Variable Definition and Sources; References; Footnotes
Content
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