Financial Development and Economic growth in Cote d’Ivoire: The case of a Small Economy

Etude Scientifique , 2011 , 21 Pages , Note: none

Economie politique - Conjoncture et Croissance

The present paper analyzes theoretically and empirically the link between financial development and economic growth in the Ivorian economy. To that end, the contribution of financial development to economic growth is assessed through the broad money (M2) as percentage of GDP ratio (M2/GDP), private credit on domestic credit (CE/CI), liquid liability of out of gross domestic product (DQM/M2), indicating the banking system’s expansion in the mobilization of saving. The analysis is carried through a VAR model.

Key words: Financial development, Economic growth, Velocity of money, risk.

JEL Classification: C32, F41, F43

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Analysis of the Determinant of the Financial Development
  • Theoretical Analysis

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study aims to analyze the relationship between financial development and economic growth in Côte d'Ivoire. The research investigates the long-term dynamics of this relationship and examines the impact of financial development on economic growth in the Ivorian context.

• The role of financial development in promoting economic growth.
• The dynamics of financial development and economic growth in Côte d'Ivoire.
• The impact of financial development on economic growth in Côte d'Ivoire.
• The factors that influence the effectiveness of financial systems in allocating savings.
• The impact of market imperfections on financial development and economic growth.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction provides background information on the relationship between financial development and economic growth, highlighting the ongoing debate about the direction of causality. It also outlines the study's objectives and methodology.

Chapter 2 delves into a theoretical analysis of the determinants of financial development. It explores the direct and indirect effects of financial development on economic growth, using a model developed by Pagano (1993). The chapter focuses on the impact of market imperfections and the role of financial systems in allocating savings.

Schlüsselwörter (Keywords)

Financial development, economic growth, velocity of money, risk, financial intermediation, market imperfections, savings allocation, Côte d'Ivoire, WAEMU.

• Université: Université de Cocody, Abidjan (The UFR of Economics and Management)
• Cours: Teacher's publication
• Note: none
• Auteur: Denis Foade (Auteur)
• Année de publication: 2011
• Pages: 21
• N° de catalogue: V168427
• ISBN (ebook): 9783640855759
• ISBN (Livre): 9783640855698
• Langue: anglais
• mots-clé: financial, development, economic, cote, small, economy