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Macroeconomic Factors and Dynamics of Financial Deepening: An empirical Investigation applied to the CEMAC Sub-region

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  • NGUENA Christian-Lambert

    (Yaoundé/Cameroun)

  • NANFOSSO Roger

    (Yaoundé/Cameroun)

Abstract

This article empirically estimates a micro-founded model with the aim to investigate the leading macroeconomic determinants and dynamics of financial deepening in the CEMAC sub-region. For this purpose, we adopted an empirical investigation in both static and dynamic panel data econometrics which has led to the following global recommendations: firstly, the CEMAC sub-region authorities should implement expansionary policies of GDP growth rate, population density, savings rate and exchange rate. Secondly, they should review their policy of trade liberalization since it appears to be negatively related to financial deepening. Concerning the dynamic aspect, a convergent dynamic and the feasibility of common monetary policy targeting depth in CEMAC sub-region have been highlighted.

Suggested Citation

  • NGUENA Christian-Lambert & NANFOSSO Roger, 2014. "Macroeconomic Factors and Dynamics of Financial Deepening: An empirical Investigation applied to the CEMAC Sub-region," Working Papers of the African Governance and Development Institute. 14/015, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:14/015
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    Cited by:

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    2. Julie Jasmine Silikam & Angeline Raymonde Ngo Essounga, 2021. "Socio-Cultural Potentials of the CEMAC Zone for Sub-Regional Integration and Development," Technium Social Sciences Journal, Technium Science, vol. 21(1), pages 718-727, July.
    3. Asongu, Simplice & Nguena, Christian, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: what have we learnt on policy syndromes and implications?," MPRA Paper 56808, University Library of Munich, Germany.

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    Keywords

    Financial deepening; panel data econometrics; CEMAC; principal component analysis; economic growth.;
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