Short-Versus Long-Term Credit and Economic Performance: Evidence from the WAEMU
IMF Working Papers, May 1, 2010
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- Short-Versus Long-Term Credit and Economic Performance: Evidence from the WAEMU
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Bibliographic details
- Authors: Kodzo Gbenyo, Kangni R Kpodar
- Published: May 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455200740.001
Study scope and data
- Paper title: Short-Versus Long-Term Credit and Economic Performance: Evidence from the WAEMU
- Authors: Kodzo Gbenyo, Kangni R Kpodar
- Date: May 1, 2010
- Coverage: WAEMU countries, panel data for the period 1995-2006
- Publication: IMF Working Papers, Working Paper No. 2010/115, Issue 115, Volume 2010, Pages: 32
- Identifiers: DOI: https://doi.org/10.5089/9781455200740.001; Stock No: WPIEA2010115; ISBN: 9781455200740; ISSN: 1018-5941
Key findings
- Financial development supports economic growth in the WAEMU region.
- Long-term bank financing has a greater impact on economic growth than short-term financing because long-term projects have higher returns adjusted for risks.
- In the WAEMU, short-term credit accounts for about 70 percent of credit to the private sector, limiting the region’s ability to reap the full benefits of improvements in their financial systems.
- The results highlight the importance of:
- macroeconomic stability,
- a creditor-friendly environment,
- political stability, and
- the availability of long-term financial resources
in fostering banks’ supply of long-term loans.
Subject areas and keywords
- Subject: Bank credit, Banking, Credit, Financial sector development, Inflation
- Keywords: bank, GDP, long-term credit, long-term credit ratio, WP
Publication note
- Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Source: IMF Working Papers — Short-Versus Long-Term Credit and Economic Performance: Evidence from the WAEMU (May 1, 2010) by Kodzo Gbenyo and Kangni R Kpodar.