TITLE:
Effects of Bank Credit on Economic Growth in the Central African Economic and Monetary Community (CEMAC)
AUTHORS:
Jean Michel Koutima-Banzouzi, Emerentienne Bakaboukila Ayessa, Beauclair Richel Gami
KEYWORDS:
Bank Credit, Economic Growth, CEMAC
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.6,
December
11,
2024
ABSTRACT: The objective of this study is to analyze the effects of bank credit on economic growth in the CEMAC. The data used come from the online databases of the World Bank (WDI) and the United Nations Conference on Trade and Development (UNCTAD). Our sample consists of six CEMAC member countries and the data are observed on an annual basis, with a frequency ranging from 2005 to 2021. The results obtained using the Generalized Method of Moments (GMM) in a dynamic panel show that bank credit has a negative and significant effect on economic growth. These results have led us to formulate the policy implications that suggest that the CEMAC authorities should pursue reforms aimed at improving the banking sector, encouraging the diversification of the economy to reduce the CEMAC’s dependence on raw materials and enable SMEs and individuals to contribute more effectively to economic growth through bank credit.