IDEAS home Printed from https://ideas.repec.org/a/afj/journl/v24y2022i2p1-16.html
   My bibliography  Save this article

Regional Convergence among Anglophone West African Countries: Evidence from Interest Rate Analysis

Author

Listed:
  • Amos Twum
  • Meshach J. Aziakpono

    (University of Stellenbosch)

Abstract

We examined convergence among Anglophone countries that form the West African Monetary Zone (WAMZ) using the interest rate pass-through (IRPT) and factor analysis with monthly data from 1980 to 2020. The results show an incomplete IRPT in the Zone. However, we generally find high convergence between Ghana and Nigeria, with occasional addition of Sierra Leone or Liberia depending on the specification. We found that Nigeria, Ghana, and Gambia have high monetary integration while Nigeria, Ghana, and Liberia have high financial integration. The results generally show that Nigeria is dominant in the WAMZ in terms of their policy and retails rates influence.

Suggested Citation

  • Amos Twum & Meshach J. Aziakpono, 2022. "Regional Convergence among Anglophone West African Countries: Evidence from Interest Rate Analysis," The African Finance Journal, Africagrowth Institute, vol. 24(2), pages 1-16.
    • Handle: RePEc:afj:journl:v:24:y:2022:i:2:p:1-16
    as

    Download full text from publisher

    File URL: https://journals.co.za/doi/abs/10.10520/ejc-finj_v24_n2_a1
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Financial integration; Monetary integration; West African Monetary Zone; Interest rate pass-through; Factor analysis;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afj:journl:v:24:y:2022:i:2:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk De Doncker (email available below). General contact details of provider: https://edirc.repec.org/data/afrgrza.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.