Journal of Finance and Bank Management

Interest Rate Liberalization and Credit Supply to the Private Sector in WAEMU: Evidence from Pooled Mean Group Estimation
Séraphin Prao YAO, Kamalan Eugène

Abstract
This study explored the long and short term effect of interest rate on credit to the private sector in WAEMU countries, over the period 1982 to 2015. The stationarity of data was analyzed by theIm, Pesaran and Shin test. This study applied the Pool Mean Group estimator (PMG) proposed by Pesaran, Shin and Smith (1999), for the purpose of analyzing long and short term relationships. The results revealed a significant negative effect of financial repression on private sector credit in the long run. The results also indicated a significant negative effect of inflation on credit to the private sector in the long and short run.

Full Text: PDF     DOI: 10.15640/jfbm.v6n1a2