Logo
Munich Personal RePEc Archive

Efficiency of financial micro intermediation in the WAEMU countries: A stochastic frontier production analysis.

BABATOUNDE, Latoundji Alain (2010): Efficiency of financial micro intermediation in the WAEMU countries: A stochastic frontier production analysis.

[thumbnail of MPRA_paper_33446.pdf]
Preview
PDF
MPRA_paper_33446.pdf

Download (261kB) | Preview

Abstract

This paper investigates the efficacy and technical efficiency of financial micro intermediation in the productive process of the WAEMU economies over the period 2002-2007 using a stochastic frontier production model with technical inefficiency effects. Four specific variables of the financial dualism deepening and the financial micro intermediation are considered: the ratio of microcredit to GDP, the microcredit growth rate, the share of microcredit in the economy financing due to the private sector and the agents preference for decentralized deposits. Our findings show that the four variables have positive effect on technical efficiency with 0.6 of semi-elasticity estimated on average whereas bank loans have on average only 0.3 on average. We conclude that the financial micro intermediation development which results from the financial dualism deepening makes it possible to almost double increase the productive efficiency in WAEMU area.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.