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Do Economic Reforms Spur Bancarisation Rate in the CEMAC Region? Empirical Analysis

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  • Gerard Tchouassi

Abstract

The aim of this paper is to empirically analyze the effect of the economic reforms on the bancarisation rate in the Central Africa Economic and Monetary Community (CEMAC). Data of six countries from the sub-region from 2001 to 2011 was used in a generalized method of moment (GMM) modeling framework. The following results are obtained: Financial liberalization has facilitated the opening of bank accounts. The opening of bank accounts demand is an increasing function of Gross Domestic Product per capita. The literacy rate contributes to the improvement of financial and banking services. Public and private infrastructures promote decentralization and delocalization of the banking network to smaller cities and rural areas. Institutional reforms work best for increasing the bancarisation rate where financial and banking activities are weak. So, the economic policy to be implemented is to continue the economic and financial reforms and ameliorate the quality of the institutions in the CEMAC region.

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  • Gerard Tchouassi, 2016. "Do Economic Reforms Spur Bancarisation Rate in the CEMAC Region? Empirical Analysis," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(4), pages 123-131, April.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:4:p:123-131
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    References listed on IDEAS

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    1. Tchouassi, Gérard & Tomo, Christian Parfait, 2022. "Modélisation des effets des réformes institutionnelles sur le développement financier pour la croissance économique en zone CEMAC [Modeling the effects of institutional reforms on financial develop," MPRA Paper 113482, University Library of Munich, Germany, revised 17 Jun 2022.

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    More about this item

    Keywords

    Bancarisation rate; economic reforms; financial liberalization; unbanked; GMM;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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