Journal articles: 'West African Monetary Zone'

1

Alemna, David. "Monetary Convergence Across the Economic Community of West African States: Lessons for the Envisioned West African Monetary Union." Complexity, Governance & Networks 7, no. 1 (May 2, 2022): 50. http://dx.doi.org/10.20377/cgn-108.

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Since its inauguration, the Economic Community of West African States has stressed its desire to advance regional integration through the establishment of a common single currency (the Eco). This policy has been considered advantageous given the economic benefits derived from the existence of one of the oldest sub-regional monetary unions across French-speaking West African Economies. For this reason, the West African Monetary Zone was created as a suggested second monetary zone consisting of English-speaking countries in the region in anticipation that in the long run, the two would converge. While empirical studies into the feasibility of achieving monetary integration in West Africa have provided some understanding of causal notions and possible effects, very few studies embrace complexity theory or attempt to use complexity-related conceptual notions in the identification and interpretation of patterns produced in longitudinal applications. Using both empirical and theoretical methods, this paper provides a unique longitudinal application of Dynamic Patterns Synthesis as an exploratory tool for observing the potential complexities that the proposed single currency arrangement across West Africa is likely to pose. The findings highlight multiple conjunctural causation in observing convergence and unpredictability across the Monetary Zone. These observations suggest more time is needed to achieve an established single currency.

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Tule, Moses K., Taiwo Ajilore, and Augustine Ujunwa. "Monetary Policy Contagion in the West African Monetary Zone." Foreign Trade Review 54, no. 4 (November 2019): 375–98. http://dx.doi.org/10.1177/0015732519874219.

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The study utilized quarterly time series data for Nigeria and three selected West African Monetary Zone (WAMZ) countries for the period 1980–2016 to verify whether monetary policy shocks emanating from Nigeria are an important source of macroeconomic fluctuations in WAMZ economies. The study complemented the Global vector autoregressive method with the Diebold–Yilmaz (2009) connectedness weights computation for the analysis. Inferences from generalized impulse response function (GIRF) analysis indicated that an unanticipated Nigerian monetary policy shock depreciates the Nigeria–USA exchange rate, stimulates growth, decelerates inflation and expands the money stock in the short run for Nigeria. In Ghana, Nigeria’s monetary policy shocks similarly depreciates the exchange rate, slows growth with high inflationary impact in the short run. In the Gambia, unanticipated shocks emanating from Nigeria strengthens the Gambia–USA exchange rate, depresses growth and inflationary pressures. Sierra Leone shares the appreciation of its currency with the Gambia, in addition to an economic expansion and rising inflation. Money supply also increases to accommodate the expanding demand. These results validated the thesis that there exist considerable geographical linkages within the WAMZ regions through which macroeconomic fluctuations are transmitted. For policy, monetary authorities in the region should collectively address the question of how to stabilize the economy in response to monetary policy shocks emanating from Nigeria. JEL Codes: E52, E32, E65, F02

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Ajayi, Oluwafemi Isaac, and Seth Akutson. "Monetary policy regimes and price stability in the West African monetary zone." Journal of Global Economics and Business 4, no. 12 (January 1, 2023): 39–58. http://dx.doi.org/10.31039/jgeb.v4i12.119.

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The study examined monetary policy regimes and price stability in the West African Monetary zone. This was undertaken given that countries in the zone are implementing different monetary policy regimes to achieve price stability for macroeconomic stability and economic growth, yet these have been elusive. So, the objective of the study was to examine the effect of monetary policy regimes on price stability in the West African monetary zone. The study adopted an ex-post facto research design and obtained secondary data from documents of the Central Banks of the WAMZ countries, the World Bank Development Indicator (WDI), the International Monetary Fund (IMF), and the International Financial Statistics (IFS) database for the period from 2001 to 2021. The method of data analysis involved the use of descriptive and analytical statistical tools. The estimation technique employed was the Panel Autoregressive Distribution Lag model, complemented by the Juodis, Karavias, and Sarafidis (2021) granger-causality test. The findings of the study indicate that the various monetary policy regimes being implemented in the West African Monetary Zone yielded conflicting effects on price stability. On the whole, the results show that the monetary policy rate against the money supply is more effective to achieve price stability in the West African monetary zone. Hence, the study makes the following recommendations; policymakers must ensure that an effective monetary policy is put in place to curb the persistent inflation in the zone that undermines socioeconomic development. Countries should review monetary policy rates appropriately to stimulate output growth, and, there should be cooperation between the monetary and fiscal authorities in the West African Monetary Zone to ensure smooth coordination and consistency in monetary and fiscal pursuits.

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E.E., Okwor, Eneoli O.C., Ezeoha P.O., and Nkama N.O. "Exchange Rate, Trade Facilitation and International Flows in West African Monetary Zone (1992-2021)." African Journal of Social Sciences and Humanities Research 5, no. 2 (June 16, 2022): 105–18. http://dx.doi.org/10.52589/ajsshr-axrotwcy.

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This study examined the relationships that exist between exchange rate, trade facilitation and international flows on economic growth in West African monetary zone (1992-2021).The study used annual data covering the periods 1992 to 2021 and the autoregressive distributed lag model (ARDLM) was employed. Preliminary tests like the unit root test, co-integration test and vector error correction model (VECM) were carried out during the study. Some of the explanatory variables and the explained variable were proxied, logged and differenced as the case may be so as to achieve the desired objectives without compromise. The study observed that the exchange rate has a negative influence on economic growth in the West African monetary zone, and trade facilitation and international flows have a positive influence on economic growth. The study, therefore, recommends that 1) diversification of the economy from import to the export-based economy is fundamental for economic growth and hence development. This can be achieved through efficient and effective regulation of foreign exchange and political stability, which are very volatile macroeconomic variables.(ii) A common currency basket in the West African monetary zone be established, as this will reduce the adverse effect of exchange rate volatility on trading partners across West Africa.

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Asenso, Joseph K. "An Interim Arrangement towards Monetary Unification in the West African Monetary Zone." Margin: The Journal of Applied Economic Research 5, no. 4 (November 2011): 451–75. http://dx.doi.org/10.1177/097380101100500403.

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Nwagu, Umunna Godson, Chika Priscilla Imoagwu, Chinwe Ann Anisiobi, and Amos Jeremiah Nwoba. "Real Interest Rate, Investment and Economic Growth: Panel Evidence from West African Monetary Zone." Journal of Advanced Research in Economics and Administrative Sciences 3, no. 4 (January 6, 2023): 21–36. http://dx.doi.org/10.47631/jareas.v3i4.556.

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Purpose: This paper investigated the effect of interest rate on investment and growth on countries under the West African Monetary Zone (Gambia, Sierra Leone, Nigeria, Ghana, Guinea and Liberia) with the use of Panel data analysis from 2000 to 2021. Approach/Methodology/Design: The study uses the Levin and Lin test to confirm the unit root of the selected variables. The stationarity shows that real interest rate, exchange rate, inflation and term of trade are integrated at levels and real gross domestic product, investment, and savings are integrated at order one. Also with the use of Kao Panel Co-integration test, it was confirm that there exists a long run relationship among the variables. Findings: The study revealed that real interest rate shows a non-significant relationship to both investment and growth in the countries under the West African Monetary Zone (WAMZ). According to the study, these countries need to reduce their real interest rates in order to increase investment in WAMZ, particularly Ghana, Gambia, and Liberia, as a result of the findings. It is imperative that policy makers in West African Monetary Zone (WAMZ) countries implement policies that will contribute to the achievement of the threshold inflation rate consistent with higher economic growth. Originality/Value: In this study, Panel data analysis has been estimated and after the test of hausman test the random effect method was used to carry out the estimation to know the impact of real interest rate on investment and economic growth with evidence for West African Monetary Zone for the period 2000 to 2015.

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Harvey, Simon K., and Matthew J. Cushing. "Is West African Monetary Zone (WAMZ) a common currency area?" Review of Development Finance 5, no. 1 (June 2015): 53–63. http://dx.doi.org/10.1016/j.rdf.2015.05.001.

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8

Gyamfi, Emmanuel Numapau, Anokye Mohammed Adam, and Emily Frimpomaa Appiah. "Macroeconomic convergence in the West African monetary zone: Evidence from rank tests." Economics and Business Letters 8, no. 4 (December 18, 2019): 191. http://dx.doi.org/10.17811/ebl.8.4.2019.191-198.

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This article examined convergence of inflation and exchange rates in six (6) West African countries that make up the West African Monetary Zone (WAMZ). A non-parametric rank and score test was employed in the analysis. The results show that inflation and nominal exchange rates of Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone are converging. The findings have practical implications.

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9

Alabi, M. K., and K. Amirthalingam. "Fiscal Deficit Sustainability and Fiscal Policy Persistence In The West African Monetary Zone." Vidyodaya Journal of Humanities and Social Sciences 06, no. 01 (2021): 99–115. http://dx.doi.org/10.31357/fhss/vjhss.v06i01.08.

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The Economic Community of West African States launched the name of its proposed currency, eco, in June, 2019 for its proposed monetary union. The Regional body stipulated certain convergence criteria to be met before member countries could be admitted to the proposed union. One such criteria is that the budget deficit-to-Gross domestic product ratio be less than or equal to three percent. Available data for the past two decades indicate the non-compliance of many of these West African countries to this condition despite having control over both fiscal and monetary policies. This study investigates the sustainability of fiscal deficits in a group of six countries known as the West African Monetary Zone. This study has two objectives: First, to investigate the sustainability of deficits in the West African Monetary Zone and secondly, to examine the absence or presence of fiscal policy persistence. Fiscal deficits are sustainable when an increase in public debt is associated with a corresponding increase in the primary surplus. Using panel data, a fiscal reaction model was estimated. The findings of this study showed that deficits are weakly sustainable and fiscal policy is highly persistent. The implication of weak sustainability is that they are easily vulnerable to external shocks and the possibility of becoming unsustainable is very high. Meanwhile, a highly persistent fiscal policy leaves little or no room for fiscal policy discretion and this is a high risk because it means government won’t respond swiftly as at when due. Based on these findings, the study recommends a suspension of the proposed single currency union

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10

Ndongo, Asta, and Ibrahima Thione Diop. "Economic and Monetary Integration in ECOWAS Countries: A Panel VAR Approach to Identify Macroeconomic Shocks." World Journal of Applied Economics 7, no. 2 (December 14, 2021): 61–87. http://dx.doi.org/10.22440/wjae.7.2.3.

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This paper studies the impact of output, exchange rate, price, and economic policies (fiscal and monetary) shocks to Economic Community of West African States (ECOWAS) economies over the period 1977-2019. The results of the impulse response functions obtained from the panel VAR show that monetary policy shocks stimulate economic activity, whereas fiscal shocks lead to a contraction. Moreover, these economic policy shocks lead to an increase in the price level. Finally, they have opposite effects on the real exchange rate: a monetary policy shock leads to an appreciation of national currencies against the US dollar, while a fiscal innovation leads to a depreciation of these currencies. As for exchange rate and price shocks, they create inflation and consequently a decline in economic activity. Furthermore, the forecast error variance decomposition reveals that real exchange rate shocks contribute the most to future fluctuations in macroeconomic variables in ECOWAS countries. Moreover, a comparison of the impact on the two currency areas, West African Economic and Monetary Union (WAEMU) and West African Monetary Zone (WAMZ), shows the degree of asymmetry between the two areas. The analysis shows, on the one hand, that shocks are more persistent and significant in the WAMZ and, on the other hand, that except for real exchange rate shocks, the two zones respond asymmetrically to shocks emanating from the other variables.

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11

Okafor, Harrison Oluchukwu. "Estimating the Costs and Benefits of a Common Currency for the Second West African Monetary Zone (WAMZ)." Journal of Economics and Behavioral Studies 5, no. 2 (February 28, 2013): 57–68. http://dx.doi.org/10.22610/jebs.v5i2.380.

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This paper, estimates the costs and benefits of a common currency in WAMZ. Behavioral models capturing the elements of costs (asymmetric shocks, loss of monetary policy autonomy, and fiscal policy distortion), and benefits (trade creation, financial integration effects and policy coordination gains) were estimated using the Vector Auto-regression (VAR) procedure and panel estimation technique.VAR impulse response and forecast error method was used to determine the countriesâ€™ response to shocks while panel regression technique was used to estimate other behavioral equations. Fiscal policy distortion and loss of monetary policy autonomy are the main cost of monetary union in the zone while the potential trade creation gain is marginal. High disposition to money reserve and weak revenue base are the core determinants of fiscal policy distortion in the zone. Overall, the paper concludes that fiscal policy distortion constitutes serious policy challenge to monetary union in the zone. Dealing with this challenge may require short-run systematic macroeconomic adjustments to enhance the convergence of macroeconomic policy indicators in the zone.

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12

Langyintuo, Augustine S., J. Lowenberg-DeBoer, and Channing Arndt. "Potential impacts of the proposed West African monetary zone on cowpea trade." Agricultural Economics 33, s3 (November 2005): 411–21. http://dx.doi.org/10.1111/j.1574-0864.2005.00463.x.

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13

Owusu Junior, Peterson, Anokye M. Adam, George Tweneboah, and Kwok Tong Soo. "Co-movement of real exchange rates in the West African Monetary Zone." Cogent Economics & Finance 5, no. 1 (January 1, 2017): 1351807. http://dx.doi.org/10.1080/23322039.2017.1351807.

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14

Cooper, Scott, and Clark Asay. "East African Monetary Union: The Domestic Politics of Institutional Survival and Dissolution." Perspectives on Global Development and Technology 2, no. 2 (2003): 131–60. http://dx.doi.org/10.1163/156915003322763539.

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AbstractMany regional currency institutions were established in subSaharan Africa under colonial rule. Surprisingly, a number of these colonial institutions survived the transition to national independence, and several have survived to the present day (e.g., the West African franc zones and the Southern African rand zone). In order to understand why some of these regional institutions survived while others collapsed, we have to look carefully at member countries' domestic politics at the time of independence. This study looks at the stop-and-go pattern of postcolonial cooperation in East Africa to provide an understanding of the choice between regional cooperation and the breakup of regional institutions. Newly independent governments in Kenya, Uganda, and Tanzania faced a choice between continuing regional institutional ties and dissolving regional institutions to issue their own national currencies. We argue that governments maintained regional currencies only when past institutions had created a domestic political constituency for continued regionalism. The most important historical legacy of colonial institutions was the way domestic political coalitions were reshaped. This study suggests, therefore, that there is a political mechanism to path dependence: past institutions continue to shape the present through changes in political alignments.

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15

Ikue, Nenubari John, Ifeanyichukwu Lucky Amabuike, Joseph Ade Ajaba, John Akin Sodipo, and Linus Bamekpari Enegesi. "Financial system, trade concentration and economic growth in West African Monetary Zone (WAMZ)." International Journal of Research in Business and Social Science (2147- 4478) 9, no. 4 (July 14, 2020): 426–36. http://dx.doi.org/10.20525/ijrbs.v9i4.770.

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It is observed that despite the legislative endorsement of the West Africa Countries there is still a glaring divergence in economic structures, which impedes the performance to realize macroeconomic convergence and economic growth within the region. This paper investigated the effects of trade and financial indexes in WAMZ on economic growth. The paper uses three variables and a host of control measures to focus on six countries of WAMZ covering the periods of 2001-2018. Given the heterogeneous nature of the information gathered for the study, the models are cast in static and dynamic panel frameworks that provided micro-structure for the combined data analysis. The models were tested with various econometric and statistical instruments. Results from the analysis show that exported trade is highly concentrated to fewer goods, while imported trade is concentrated on more products and partners; that is, countries in WAMZ tend to shadow liberal import policy. The weak link was also noticed among financial and trade indexes and economic growth in the WAMZ economies. The implications call for short term economic plans and policies in the WAMZ economies so as to collectively monitor economic policies and growth. We equally observed that the structures of the economies in the region are heterogeneous making it rather difficult for regional trade and financial indicators to accelerate output growth in the region. Thus our basic postulations are an inter-policy approach on social, political and economic (trade and finance) arrangements that would neutralize the heterogeneity and foster institutional and attitudinal reforms, eliminate insecurity challenges, and spur political stability and responsible leadership within the regions.

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Ezeaku, Hillary, Anthony Ageme, C. Anisiuba, and J. Onwumere. "Official Development Assistance and Economic Development: Evidence from the West African Monetary Zone." Asian Journal of Economics, Business and Accounting 4, no. 3 (January 10, 2017): 1–8. http://dx.doi.org/10.9734/ajeba/2017/36247.

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17

Eregha, Perekunah B. "Exchange Rate, Uncertainty and Foreign Direct Investment Inflow in West African Monetary Zone." Global Business Review 20, no. 1 (November 12, 2018): 1–12. http://dx.doi.org/10.1177/0972150918803835.

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Exchange-rate movements are mostly unpredictable, and this tends to affect both trade and foreign investment flows. This is because foreign investors are unclear on the returns to investment decisions in such cases. Hence, this study examines the effect of exchange rate, its volatility and uncertainty on foreign direct investment (FDI) inflow in West African monetary zone (WAMZ). The study covers the period1980–2014, and the within estimator for the fixed effect model is employed. The study accounts for both exchange rate volatility and uncertainty measures which are anticipated and unanticipated exchange rate innovations measures, respectively. The results show that exchange-rate movements in WAMZ countries are more of unanticipated than anticipated innovations in affecting FDI inflow. Therefore, policies aimed at targeting exchange-rate stability are essential in the WAMZ countries since investors are profit maximizers; hence, investment uncertainties must be kept as low as possible. Also since WAMZ export sectors are primary products based, policies should be geared towards the diversification of the export sectors to combat unanticipated global shocks from commodity prices movement in having an effect on the exchange rate through the foreign exchange reserve channel.

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Adu, Raymond, Ioannis Litsios, and Mark Baimbridge. "Real exchange rate and asymmetric shocks in the West African Monetary Zone (WAMZ)." Journal of International Financial Markets, Institutions and Money 59 (March 2019): 232–49. http://dx.doi.org/10.1016/j.intfin.2018.12.005.

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19

Kamaluddeen Ibrahim, Yusuf, and Abdullahi Ayoade Ahmad. "THE ROLE OF NIGERIA IN THE ECOWAS AND ITS SUPPORT TOWARDS THE COMMON PROPOSED CURRENCY ECO." Asian People Journal (APJ) 3, no. 2 (October 31, 2020): 86–95. http://dx.doi.org/10.37231/apj.2020.3.2.213.

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Nigeria is the arrowhead of the Economic Community of West African State (ECOWAS), which was emerged in Lagos on May 28, 1975, as a regional institution consisting of fifteen nations. The essence of the establishment is to integrate the region into the single economic bloc and to ensure sole currency existence, which has been on the agenda of the head of the state conference. The study adopted regional integration theory and employed Qualitative Document Analysis (QDA) in order to elaborate on the big-brother and sub-regional leader role of Nigeria in the region. The study found that loyalty to colonialism and the francophone country's long-existing monetary cooperation towards France was the strong blockade of the proposal as well as the member state was unable to reach-up to the merging criteria, which resulted in the shift and delays on the establishment of the common currency date. It was also discovered that on the efforts to embark on the process, two fast track approaches were being agreed upon towards the realization of the common currency. The first track meeting was held in Accra, Ghana, in April 2000, proposing that the West African Economic and Monetary Union (WAEMU) were to create a second Monetary Union by July 2005 termed the West African Monetary Zone (WAMZ), mainly comprising of Anglophone countries. The second track was stressing on the consequent merging of the WAMZ and WAEMU to form a common currency union in the region. The study went further to provide some suggestions toward the implementation of the common currency in the region. Keywords: Nigeria, ECOWAS, Single Currency, Regional Leader.

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20

Chiawa, Moses Abanyam. "A Linear Programming Approach to Determine an Optimum Value in a Single Currency Project of West Africa**." Journal of Corporate Governance, Insurance, and Risk Management 1, no. 1 (March 28, 2014): 69–88. http://dx.doi.org/10.56578/jcgirm010104.

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The paper discusses the primary and secondary convergence conditions for the second monetary zone in West Africa. The focal point is however the primary conditions as these provide the basis for the attainment of the secondary conditions. Panel data for the research are obtained from the West African Monetary Agency website: www.wami.imao.org. The variables are those given in the primary conditions and these are first tested for unit root and stationarity for each country. A panel cointegration test is then applied to obtain a long-run equation which is used as an objective function in the Simplex method of linear programming with the primary conditions as constraints. The panel unit root test results show that all the variables are integrated with the degree of integration varying from zero to one for different countries. The stationarity test confirms the result, as the variables are non-stationarity in level for some countries but stationarity for others. Since the unit root and stationarity test show conflicting results, the pooled mean group estimator is used to obtain long-run cointegration equation. This equation can be applied irrespective of whether the variables are integrated or not. Linear programming is then used to obtain the optimal condition for attainment of a single currency project for West Africa. The result shows that the objective function is minima at 0.0462 with inflation contributing more to the variation in the government external reserves. The paper recommend that Central Banks in those countries preparing for second monetary zone should avoid implementing inflation targeting as a way to solving their economic problem.

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Oluwole, Foluso Ololade, and John Adebayo Oloyede. "Test of Monetary Approach to Balance of Payments in West Africa Monetary Zone." Australian Finance & Banking Review 4, no. 1 (May 18, 2020): 9–17. http://dx.doi.org/10.46281/afbr.v4i1.578.

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This research tested the monetary approach to Balance of Payment in developing countries of West Africa in order to affirm whether the specified relationship in the approach depicts correctly the actual behaviour of the economies. Time series and cross-sectional data that ranges from 1970 – 2016 were used. The empirical results of the fixed effect model established a significant positive relationship between net domestic credit, interest rate and exports; an insignificant positive relationship between capital movements, imports, income and the dependent variable. Exchange rate, however, had a significant negative relationship with the net foreign assets, while inflation had an insignificant but negative relationship with net foreign assets. The pairwise causality tests indicated a unidirectional relationship between exchange rate, net domestic credit and net foreign assets while the other variables move independently and cannot granger cause net foreign assets. Hence, the study concludes that the Polak model is valid in the West Africa Monetary Zone despite the fact that they are no more operating a fixed exchange rate system. The study suggests that the attention of the monetary authorities and the governments should not only be on decreasing the money supply in the economy, since an increase in net domestic credits has a positive impact on the net foreign assets provided it is channeled towards domestic production.

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Fofanah, Pabai. "Effects of Exchange Rate Volatility on Economic Growth: Evidence from West African Monetary Zone." International Journal of Scientific Research and Management 9, no. 1 (January 1, 2021): 508–35. http://dx.doi.org/10.18535/ijsrm/v9i1.sh02.

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Abstract: This study examined the effects of exchange rate volatility on economic growth in four WAMZ countries. The study uses the pooled ordinary least squares, fixed effects and random effects models, and obtains a robust standard error estimate of the model by applying xtreg, cluster()fe. The empirical analysis shows that the effects of exchange rate volatility on economic growth is insignificant. The results also show a positive correlation between exports and economic growth. This implies that policies aimed at increasing exports through an appropriate exchange rate may be beneficial countries. In addition, the analysis also shows a positive and significant link between imports and economic growth rates. Therefore, this confirms that the countries actually benefit from imports resulting from the competitive pressure generated by the import of consumer goods and professional knowledge, and also from the transfer of technology embodied in the import of goods by producers. Hence, the policy of removing import barriers will benefit the countries. In addition, the results show that there is a positive correlation between the nominal exchange rate and economic growth rate. Therefore, it shows that the nominal exchange rate depreciation policy can play an important role in improving the economic growth of the countries. However, the research results show that there is an inverse relationship between the real exchange rate and economic growth. Considering the importance of the real exchange rate, this study suggests the introduction of a common currency in the WAMZ to reduce the negative effects of the real exchange rate on economic growth.

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23

Ikechukwu, Ogbuagu Matthew, Saibu Muibi Olufemi, Ogunniyi Babatope Matthew, and Oladipo Oladapo. "Capital Inflows, Macroeconomic Conditions and Growth Convergence in The West African Monetary Zone (WAMZ)." Journal of Developing Areas 56, no. 4 (September 2022): 93–104. http://dx.doi.org/10.1353/jda.2022.0066.

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24

Ozekhome, Hassan. "International Trade Costs and Trade Flows: Evidence from the West African Monetary Zone (WAMZ)." Finance & Economics Review 2, no. 1 (May 22, 2020): 63–76. http://dx.doi.org/10.38157/finance-economics-review.v2i1.80.

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Purpose: The study examines the effect of international trade costs on trade flows in the West African Monetary Zone (WAMZ), a sub-regional economic bloc within the Economic Community of West African States (ECOWAS). Method: Six member countries of the WAMZ, based on data availability, are examined using panel data estimation technique and the Fully Modified Ordinary Least squares (FMOLS), which is employed to test for the robustness of results, for the sample period of 2006-2018. Results: The study finds a negative and significant effect of international trade costs on trade flows in the WAMZ sub-region. Time to trade is also found to be negatively and significantly related to trade. Exchange rate, financial development (measured by commercial banks' credit to the private sector), and real GDP growth rate (a measure of growth in annual national income/economic size) have a positive and significant impact on trade in the sub-region. The study further finds evidence that the ease of doing business is positively related to trade in the sub-region, but the impact is weak. Implications: In the light of the empirical findings, the study recommends that policy measures and strategies to reduce international trade costs and time to trade through simplified and harmonized trade procedures be implemented in the sub-region. Policies to encourage domestic investment (i.e increase capital stock) and rapid development of the financial sector should also be implemented. These should be supported with sound and stable macroeconomic exchange rate management policies, in order to enhance trade and integration in the sub-region.

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Effiong, Ubong Edem, Ekomabasi Akpan, and John Polycarp Ekpe. "Testing the Validity of the Inflation-Unemployment Nexus within the West African Monetary Zone." Path of Science 8, no. 8 (August 8, 2022): 1011–26. http://dx.doi.org/10.22178/pos.84-11.

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26

Eregha, Perekunah B. "Exchange Rate Regimes and Foreign Direct Investment Flow in West African Monetary Zone (WAMZ)." International Economic Journal 34, no. 1 (September 25, 2019): 85–99. http://dx.doi.org/10.1080/10168737.2019.1669689.

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27

Amaefule, Chukwuemeka, and Okechuku Onuchuku. "Kristalina Georgieva-led IMF Prediction, Shocks, and Stability in the West African Monetary Zone." European Journal of Sustainable Development Research 4, no. 4 (July 19, 2020): em0136. http://dx.doi.org/10.29333/ejosdr/8406.

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28

Fofanah, Pabai. "Effects of Exchange Rate Volatility on Economic Growth: Evidence from West African Monetary Zone." International Journal of Scientific Research and Management 9, no. 1 (January 1, 2021): 508–35. http://dx.doi.org/10.18535/ijsrm/v9i1.sh02.

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Abstract: This study examined the effects of exchange rate volatility on economic growth in four WAMZ countries. The study uses the pooled ordinary least squares, fixed effects and random effects models, and obtains a robust standard error estimate of the model by applying xtreg, cluster()fe. The empirical analysis shows that the effects of exchange rate volatility on economic growth is insignificant. The results also show a positive correlation between exports and economic growth. This implies that policies aimed at increasing exports through an appropriate exchange rate may be beneficial countries. In addition, the analysis also shows a positive and significant link between imports and economic growth rates. Therefore, this confirms that the countries actually benefit from imports resulting from the competitive pressure generated by the import of consumer goods and professional knowledge, and also from the transfer of technology embodied in the import of goods by producers. Hence, the policy of removing import barriers will benefit the countries. In addition, the results show that there is a positive correlation between the nominal exchange rate and economic growth rate. Therefore, it shows that the nominal exchange rate depreciation policy can play an important role in improving the economic growth of the countries. However, the research results show that there is an inverse relationship between the real exchange rate and economic growth. Considering the importance of the real exchange rate, this study suggests the introduction of a common currency in the WAMZ to reduce the negative effects of the real exchange rate on economic growth.

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29

Udoh, Elijah. "Optimal Seigniorage and Tax-Smoothing in West African Monetary Zone (WAMZ): An Econometric Assessment." Journal of Developing Areas 45, no. 1 (2011): 251–77. http://dx.doi.org/10.1353/jda.2011.0010.

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30

Babatunde, M. Adetunji. "Establishing Wagner's Law in the West Africa Monetary Zone (WAMZ)." Indian Economic Journal 56, no. 3 (October 2008): 109–23. http://dx.doi.org/10.1177/0019466220080308.

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31

Magazzino, Cosimo. "Fiscal variables and growth convergence in the ECOWAS." African Journal of Economic and Management Studies 7, no. 2 (June 13, 2016): 147–63. http://dx.doi.org/10.1108/ajems-03-2015-0032.

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Purpose – The purpose of this paper is to assess the relationship among fiscal variables (net lending, government expenditure and revenue) and economic growth in Sub-Saharan African countries. Design/methodology/approach – Using yearly data for the period between 1980 and 2011 in 15 Economic Communities Of West African States (ECOWAS) countries, the relationship among fiscal variables, economic growth and trade is investigated, through various econometric techniques. Findings – Government expenditure and revenue show pro-cyclical effects in West African Economic and Monetary Union (WAEMU) and ECOWAS countries, while fiscal balance has a pro-cyclical nature for WAEMU during the years 1999-2011. Moreover, a weak long-run relationship between government expenditure and revenue emerge, but only in the case of West African Monetary Zone (WAMZ) countries. Granger causality analysis showed mixed results for WAEMU countries, while for four out of six WAMZ countries (Gambia, Liberia, Nigeria, and Sierra Leone) the “tax-and-spend” hypothesis holds, since government revenue would drive the expenditure. Finally, in the last three decades, cyclical component of economic growth has reduced its fluctuations, both for WAEMU and WAMZ member States. Originality/value – This is the first study on the effects of fiscal policies in the ECOWAS countries.

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32

Raji, Rahman olanrewaju. "Impact of Exchange Rate on Selected Macroeconomic Variables: A case study of West African Monetary Zone." Journal of Global Economy 9, no. 1 (March 25, 2013): 3–20. http://dx.doi.org/10.1956/jge.v9i1.286.

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The study takes a cursory look at reaction of macroeconomic variables due to exchange rate shocks of four selected WAMZ countries in order to assess the level of macroeconomic convergence in the zone between the declarationâ€™s year of WAMZ, 2000 and 2010 using Structural VAR country by county. It was observed that monetary policy and money supply attained their co-integrating equilibrium in Gambia, Ghana and Nigeria while exchange rate attained co-integrating equilibrium in Gambia and Ghana within two quarters. The growth rate reacted positively on exchange rate but the magnitudes of reactions were not strongly up to expectation among the countries. The contribution of exchange rate depreciations to money supply and inflation is much in Sierra Leone when compared with other economies and more surprisingly, the past exchange rate influenced the current exchange rate strongly in Sierra Leone but moderately in other economies in the zone. Interestingly, Ghana economy happened to be a distinctive economy in the zone in term of selected variables reaction to exchange rate depreciation. For the zone to establish currency union, three most promising countries are Gambia, Ghana and Nigeria due to symmetrical alignment exhibited in some macroeconomic parameters, although the synchronizations were not strong but moderate among the promising nations.

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33

Omisakin, Olusegun, Oluwatosin Adeniyi, and Abimbola Oyinlola. "Exchange Rate and Trade Balance in West African Monetary Zone: Is There a J-Curve?" International Journal of Applied Economics and Finance 5, no. 3 (March 1, 2011): 167–76. http://dx.doi.org/10.3923/ijaef.2011.167.176.

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34

Cham, Tamsir. "Does monetary integration lead to an increase in FDI flows? An empirical investigation from the West African Monetary Zone (WAMZ)." Borsa Istanbul Review 16, no. 1 (March 2016): 9–20. http://dx.doi.org/10.1016/j.bir.2016.01.002.

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35

Raji, Rahman olanrewaju. "Exchange Rate Pass Through in a Small Open Economy: A case study of West African Monetary Zone." Journal of Global Economy 9, no. 4 (December 28, 2013): 275–90. http://dx.doi.org/10.1956/jge.v9i4.301.

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TheÂ study investigated the magnitude of exchange rate pass through to import prices and domestic pricesÂ Â Â (consumer price index) in WAMZ economy using quarterly time-series data between 2000 and 2010 with the aids of Vector autoregressive (VAR) modeling technique supported with Johansen co-integration approach cross country analysis comprising of Gambia, Ghana, Nigeria and Sierra-Leone. The study discovered that transmission of exchange rate to import prices is more when compared with consumer price in the zone while the contributions of exchange rate to import price are not less 13 percent at average in entire zone. Consumer price index was explained by exchange rate pass through with an average of 26 percent in the zone where the pass through to consumer price is less than two percent in Ghanaian economy. The Taylor (2000) hypothesis was observed in the study where Ghana and Nigeria are the outlier economies while Nigeria established a positive relationship between interest rate volatility and exchange rate pass through to import prices.

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36

Nahoussé, Diabaté. "The Determinants of Inflation in West Africa." International Journal of Economics and Financial Research, no. 55 (May 15, 2019): 100–105. http://dx.doi.org/10.32861/ijefr.55.100.105.

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The objective of this study is to identify the determinants of inflation in West Africa, mainly in the WAEMU zone, in order to contribute to improving the conduct of monetary policy. The equation of the exchange of the Quantitative Theory of the Currency and the generalized method of moments (MMG) in dynamic panel is used. Annual data concerning six countries in West Africa and range from 1991 to 2015. The results of the estimation show that in addition to the economic growth rate and the money supply, the devaluation has a significant effect on inflation. As we can see, inflation is not systematically a monetary phenomenon in West Africa. The authorities must therefore seek to determine the optimal threshold for the rate of increase of the money supply.

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Njindan Iyke, Bernard. "Real exchange rates persistence in the West African monetary zone: a revisit of the PPP puzzle." International Journal of Emerging Markets 12, no. 2 (April 18, 2017): 366–83. http://dx.doi.org/10.1108/ijoem-08-2015-0155.

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38

Raji, Rahman olanrewaju. "A Causal Relationship between Corporate Investment and Inflation: empirical investigation from WAMZ economy." Journal of Global Economy 11, no. 3 (September 27, 2015): 199–211. http://dx.doi.org/10.1956/jge.v11i3.399.

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Â Â Â Â Â Â The paper examines causal relationship between corporate investment and inflation for four countries in West African Monetary Zone, using the Vector Error Correction model (VECM). The study discovered that there is co-integration between investment and inflation in the selected countries in WAMZ. This implies that a long run relationship between inflation and investment in the selected WAMZ nations. The results show that investment Granger causes inflation in Gambia, Ghana and Nigeria while inflation Granger causes investment in Sierra Leone but bi-directional relationship inflation and investment was not found in WAMZ. Â However, the results show that there are needs to ensure reforms and policies that should be adopted and must become the utmost priority in the WAMZ economies for the monetary policy to be effective in influencing economic activities which in turn enhances investment in the zone.

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39

ADELEKE, I. "Banking crises and inflation dynamics in the West Africa Monetary Zone (WAMZ)." Journal of Economics and International Finance 5, no. 6 (September 30, 2013): 225–31. http://dx.doi.org/10.5897/jeif2013.0522.

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40

Olanrewaju, Raji, Rahman. "Impact of Misaligned Real Exchange Rate on Economic Performance: A case study of West African Monetary Zone." IOSR Journal of Economics and Finance 1, no. 6 (2013): 56–67. http://dx.doi.org/10.9790/5933-0165667.

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41

Mbengue, Mohamed Lamine, and Eric Paget-Blanc. "The fixed income securities market in the West African Economic and Monetary zone: Are credit spread abnormally low?" Research in International Business and Finance 41 (October 2017): 235–38. http://dx.doi.org/10.1016/j.ribaf.2017.04.040.

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42

Seraphin, Prao Yao. "Urbanization, Gender and Economic Growth in the Waemu Zone: Evidence from Pooled Mean Group Estimation." Advances in Politics and Economics 3, no. 4 (December 1, 2020): p47. http://dx.doi.org/10.22158/ape.v3n4p47.

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This study empirically analyses the influence of urbanization and the participation of men and women in the labour force on economic growth in the countries of the West African Economic and Monetary Union (WAEMU). Using data from the World Bank (2017) on the member States between 1990 and 2016, we show from Pesaran’s PMG estimator, Shin and Smith (1999) that in the short term, youth and women are very useful for economic growth. In the long term, urbanization, industrial added value and the elderly make a positive contribution to economic growth. The study urges governments to create better living conditions by ensuring adequate income levels and care, i.e., public policies should aim to increase employment, establish or improve social protection, social integration, health and the fight against discrimination.

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Herve, DRAMA Bedi Guy. "Empirical Analysis and Forecast of Electricity Demand in West African Economic and Monetary Zone: Evidence from Panel ADRL Modelling." Asian Journal of Economic Modelling 6, no. 3 (2018): 257–73. http://dx.doi.org/10.18488/journal.8.2018.63.257.273.

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Seraphin, PRAO Yao. "Bank Excess Liquidity and Economic Growth in Waemu Countries: A Panel Data Approach." Advances in Politics and Economics 1, no. 2 (November 6, 2018): 141. http://dx.doi.org/10.22158/ape.v1n2p141.

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This paper provides an empirical assessment of the relationship between banking, liquidity, investment, terms of trade, bank solvency ratio, financial development and economic growth in the WAEMU zone. The analysis focuses on 7 countries of the West African Economic and Monetary Union (WAEMU) and covers the period 1994-2015. Using the panel data approach, we show that economic growth is positively related with banking on liquidity. In addition, the results highlight the impact of bank liquidity on economic growth but mitigate when it is associated with the investment.

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45

Asongu, Simplice. "Are proposed African monetary unions optimal currency areas? Real, monetary and fiscal policy convergence analysis." African Journal of Economic and Management Studies 5, no. 1 (April 1, 2014): 9–29. http://dx.doi.org/10.1108/ajems-02-2012-0010.

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Purpose – A spectre is hunting embryonic African monetary zones: the European Monetary Union crisis. The purpose of this paper is to assess real, monetary and fiscal policy convergence within the proposed WAM and EAM zones. The introduction of common currencies in West and East Africa is facing stiff challenges in the timing of monetary convergence, the imperative of central bankers to apply common modeling and forecasting methods of monetary policy transmission, as well as the requirements of common structural and institutional characteristics among candidate states. Design/methodology/approach – In the analysis: monetary policy targets inflation and financial dynamics of depth, efficiency, activity and size; real sector policy targets economic performance in terms of GDP growth at macro and micro levels; while, fiscal policy targets debt-to-GDP and deficit-to-GDP ratios. A dynamic panel GMM estimation with data from different non-overlapping intervals is employed. The implied rate of convergence and the time required to achieve full (100 percent) convergence are then computed from the estimations. Findings – Findings suggest overwhelming lack of convergence: initial conditions for financial development are different across countries; fundamental characteristics as common monetary policy initiatives and IMF-backed financial reform programs are implemented differently across countries; there is remarkable evidence of cross-country variations in structural characteristics of macroeconomic performance; institutional cross-country differences could also be responsible for the deficiency in convergence within the potential monetary zones; absence of fiscal policy convergence and no potential for eliminating idiosyncratic fiscal shocks due to business cycle incoherence. Practical implications – As a policy implication, heterogeneous structural and institutional characteristics across countries are giving rise to different levels and patterns of financial intermediary development. Thus, member states should work towards harmonizing cross-country differences in structural and institutional characteristics that hamper the effectiveness of convergence in monetary, real and fiscal policies. This could be done by stringently monitoring the implementation of existing common initiatives and/or the adoption of new reforms programs. Originality/value – It is one of the few attempts to investigate the issue of convergence within the proposed WAM and EAM unions.

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Ibrahima, Abdoulaye Ali, Saley Bisso, Salimata Gueye Diagne, and C. Diallo. "Analysis of the Competition for the Location of the Optimal Hub in the WAEMU (West African Economic and Monetary Union) Zone." Journal of Mathematics Research 13, no. 3 (April 20, 2021): 45. http://dx.doi.org/10.5539/jmr.v13n3p45.

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The objective of this study is to analyze the contribution of governance (political stability) as well as per capita income and traffic past measured through the number of passengers traveling by air during a period of one year within each country of the zone to the formation of a hub in the WAEMU zone. Governance has been apprehended through Kaufman indicators which summarize the six dimensions of governance. Three control variables have been added in the model to better explain per capita income and reduce bias in the estimation. To achieve this objective, the study proceeded first with a descriptive analysis which revealed the existence of a positive linear correlation between governance indicators and the level of air traffic, and then with a dynamic panel approach. To this end, the Generalized Moment Method (GMM) showed that the overall contribution of governance to economic performance is not significant in the sample, as well as for each dimension of governance taken individually. However, the results differ when dissociating the specific effect of Senegal, where political stability, government effectiveness, regulatory quality and rules and laws each have a positive and significant impact on per capita income.

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47

Adelakun, O. J. "Does a Monetary Union Matter for the Degree of Inflation Persistence? The Case of the West Africa Monetary Zone (WAMZ)." Studies in Economics and Econometrics 44, no. 1 (April 1, 2020): 1–34. http://dx.doi.org/10.1080/10800379.2020.12097354.

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48

Adi, Agya Atabani, and Joshua Sunday Riti. "Determination of Long and Short Run Demand for Money in the West African Monetary Zone (WAMZ) Countries: A Panel Analysis." Econometric Research in Finance 2, no. 2 (January 5, 2018): 79–97. http://dx.doi.org/10.33119/erfin.2017.2.2.2.

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The paper examines demand for real money balances in six West Africa countries, over the 1985-2014 periods using panel Cointegration technique. The result shows that long run money demand is positively related to real income, inflation rate and inversely related to interest rate spread, real effective exchange rate and US real interest rate. Long run income elasticity is greater than unity and less than unity in short run. All variables are significant except effective exchange rate, thus; both currency substitution and capital mobility hypotheses hold in the long run while capital mobility holds only in the short run. We recommend that monetary aggregate should growth slower than economic growth to maintain price stability, countries should try to maintained stable exchange rate and ensured market driven interest rate policy. Keyword: Demand for Money; Interest Rate Spread; Capital Mobility and Currency Substitution, Panel Analysis.JEL CODE: E41, E52, C33, O11.

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49

Frascaroli, Bruno Ferreira, and Jailson Da Conceição Teixeira de Oliveira. "Sub-Saharan African Countries’ Dependence on the External Inflation: Empirical Evidence Using Copulas." International Business Research 10, no. 12 (October 27, 2017): 1. http://dx.doi.org/10.5539/ibr.v10n12p1.

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The purpose of this study is to estimate the dependence between the inflation, given by the Consumer Price Index (CPI), in part of the Sub-Saharan African (SSA) countries with the CPI observed in the Euro Monetary Zone (EMZ) countries. To achieve this goal, we adopted the empirical methodology of Copulas, which was used in the analysis of the CPI, in bivariate models context. The results were controlled by the countries which adopted fixed and flexible exchange rate regimes. They suggest that the CPI in the sampled countries which adopted fixed exchange rate regimes, as Sao Tome and Principe, Benin, the countries of the West African Economic and the Monetary Union (WAEMU), Burkina Faso, Ivory Coast and Togo had more significant dependence relationship with the Euro. On the other hand, the countries which adopted flexible exchange rate regimes as Cape Verde, Burkina Faso, Guinea-Bissau, Mali, Senegal and Togo presented dependence on upper tail of the distribution, i.e., for the periods of increasing in the CPI. Maybe, it means that those countries had inelastic demands for tradable goods coming from the EMZ countries. We conclude that the imported inflation is an important issue to be considered by the policy makers of developing countries such as the studied, mainly for those which adopted fixed regimes, eventually change to flexible exchange regimes.

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Kalu, Ebere Ume, Augustine C. Arize, John Malindretos, Kalu Idika Awa, and Chiamaka Goodness Eze. "Linear and asymmetric analyses of macro-economic and bank-specific determinants of non-performing loans in West African Monetary Zone (WAMZ)." World Review of Entrepreneurship, Management and Sustainable Development 17, no. 5 (2021): 670. http://dx.doi.org/10.1504/wremsd.2021.117447.

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Journal articles on the topic 'West African Monetary Zone'

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