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Financial Depth in the WAEMU: Benchmarking Against Frontier SSA Countries

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  • Mr. Calixte Ahokpossi
  • Kareem Ismail
  • Mr. Sudipto Karmakar
  • Mr. Mesmin Koulet-Vickot

Abstract

Financial depth in Sub-Saharan Africa (SSA) has been uneven over the last two decades. The WAEMU countries are lagging behind other regions, particularly the High Growth Non-oil Exporters (HGNOEs) group. We use two complementary methodologies to compare the two groups of countries. In a panel of 16 countries over 1997–2009, we find that the financial gap between the two groups of countries can be explained by institutional factors. In a benchmarking exercise comparing the major economy in the WAEMU (Côte d’Ivoire) with the most structurally similar in the control group (Mozambique), we show that Côte d’Ivoire underperformed relative to Mozambique and to its estimated potential. We then identify policy and institutional asymmetries between the two countries that could explain the gap in performance.

Suggested Citation

  • Mr. Calixte Ahokpossi & Kareem Ismail & Mr. Sudipto Karmakar & Mr. Mesmin Koulet-Vickot, 2013. "Financial Depth in the WAEMU: Benchmarking Against Frontier SSA Countries," IMF Working Papers 2013/161, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/161
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    References listed on IDEAS

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    2. Mr. Adrian Alter & Boriana Yontcheva, 2015. "Financial Inclusion and Development in the CEMAC," IMF Working Papers 2015/235, International Monetary Fund.
    3. Azanaw Mengistu & Hector Perez-Saiz, 2018. "Financial Inclusion and Bank Competition in Sub-Saharan Africa," IMF Working Papers 2018/256, International Monetary Fund.

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