Analysis of the contribution of shadow banking system to the economic growth of Waemu Countries
The case of Senegal
DOI:
https://doi.org/10.31686/ijier.vol4.iss5.540Keywords:
fundraising, shadow banking, financial system, regulation, economic growth, WAEMUAbstract
The goal of this article is to analyze the contribution of shadow banking system to the economic growth of WAEMU countries. The study focuses on the specific case of Senegal. Shadow banking is a market of multiform capital exchanges and a socialization of investment risks. Its emergence is an indicator of economic maturity which proves the actors care about efficient allotment of financial resources and reflects a widespread change in the perception of the asymmetry linked to funding.
Our theoretical as well as empirical research work enabled us to assess the impact of a virtually distant phenomenon on the growth for our still fragile developing countries. The results of the model show us that shadow banking influences positively economic growth because the elasticity of non-banking public funding obtained by using a coefficient of is positive ( >0). The elasticity reflects the behavior of the growth following a variation of up to 1% of non-banking public funding. That corroborates the existence of a strong complementary relationship between these two variables. Therefore, shadow banking is a potentiality for financing and even a key instrument for fundraising and therefore promotes economic growth.
Downloads
References
P. BLANQUE, Shadow Banking. What is the parallel finance? What is its role? How to regulate it? Eyrolles Edition. 2015, P 165-167.
J. C. GRUFFAT, the bank of the shadow sight states - USA, Eyrolles Edition. 2015, P 57-78.
J. ESTHER and D. PLIHON, “The shadow banking system and the financial crisis”, University Paris 8, LED and Paris 13 University Sorbonne Paris City, CEPN, French notebook N° 375, 2010.Michel. AGLIETTA, “Shadow Banking carries a risk of illiquidity collective”, University of Paris Nanterre. AGEFI. PARIS, 2014.
C. MELLIOS, Shadow banking, what is the parallel finance? What is its role? How to regulate it? Eyrolles Edition, 2015, P 33 – 39.
P. ROMER, Increasing Returns and Long-Run Growth. Journal of Political Economy, 1986, Vol. 94, N_5, pp. 1002-1037. DOI: https://doi.org/10.1086/261420
LUCAS, R. (1988). On the Mechanics of Development. Journal of Monetary Economics, Vol. 22, N_1, pp. 3-42. DOI: https://doi.org/10.1016/0304-3932(88)90168-7
R. J. BARRO, Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 1990, Vol. 98, N-5, pp. S103-S125. DOI: https://doi.org/10.1086/261726
R. SOLOW, “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, 1956, Vol. 70, pp. 65-94. DOI: https://doi.org/10.2307/1884513
E. SHAW, and Mc. KINNON, Financial Aspects of Economic Development American Economic Review, 1973, Vol. 45, pp. 515-538.
R. C. MERTON, Financial Innovation and the Management Regulation of Financial Institutions. Journal of Banking and Finance, 1995, Vol. 19, pp. 461-481. DOI: https://doi.org/10.1016/0378-4266(94)00133-N
Downloads
Published
Issue
Section
License
Copyright (c) 2016 Mamadou Mbaye
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Copyrights for articles published in IJIER journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author for more visit Copyright & License.
How to Cite
