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Analysis of the contribution of shadow banking system to the economic growth of Waemu Countries

The case of Senegal

Authors

  • Mamadou Mbaye

    ANTA DIOP SHEIKH UNIVERSITY (ADSU), SENEGAL

    Author

DOI:
https://doi.org/10.31686/ijier.vol4.iss5.540
Keywords:
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Abstract

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.

Author Biography
  1. Mamadou Mbaye, ANTA DIOP SHEIKH UNIVERSITY (ADSU), SENEGAL

    LABORATORY OF RESEARCH ECONOMIC AND MONETARY (LAREM)FACULTY OF ECONOMICS AND MANAGEMENT (FEAM) 

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Published
2016-05-01
Issue
Vol. 4 No. 5 (2016): International Journal for Innovation Education and Research
Section
Journal Articles
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Copyright (c) 2016 Mamadou Mbaye

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How to Cite

Mbaye, M. (2016). Analysis of the contribution of shadow banking system to the economic growth of Waemu Countries: The case of Senegal. International Journal for Innovation Education and Research, 4(5), 68-84. https://doi.org/10.31686/ijier.vol4.iss5.540