## Financial Depth in the WAEMU: Benchmarking Against Frontier SSA Countries

_IMF Working Papers, July 3, 2013_

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## Bibliographic details
- Authors: Calixte Ahokpossi, Kareem Ismail, Sudipto Karmakar, Mesmin Koulet-Vickot
- Published: July 3, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484309391.001

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### Overview
- Authors: Calixte Ahokpossi, Kareem Ismail, Sudipto Karmakar, Mesmin Koulet-Vickot
- Publication date: July 3, 2013
- Series: Working Paper No. 2013/161
- Pages: 23
- Volume: 2013
- Issue: 161
- DOI: https://doi.org/10.5089/9781484309391.001
- ISBN: 9781484309391
- ISSN: 1018-5941

### Research question and scope
- Objective: Compare financial depth in the WAEMU countries with frontier Sub-Saharan Africa (SSA) countries, emphasizing differences with the High Growth Non-oil Exporters (HGNOEs) group.
- Time coverage for panel analysis: 1997–2009
- Main comparative focus: Côte d’Ivoire (major WAEMU economy) versus Mozambique (most structurally similar in the control group)

### Methodologies
- Panel analysis:
  - Sample: 16 countries
  - Period: 1997–2009
  - Purpose: Identify drivers of the financial gap between WAEMU and frontier SSA groups
- Benchmarking exercise:
  - Pairwise comparison: Côte d’Ivoire vs Mozambique
  - Purpose: Assess performance relative to a structural peer and to estimated potential (financial possibility frontier)

### Key findings
- Regional performance:
  - Financial depth in Sub-Saharan Africa has been uneven over the last two decades.
  - The WAEMU countries are lagging behind other regions, particularly the High Growth Non-oil Exporters (HGNOEs) group.
- Panel results (1997–2009):
  - The financial gap between the two groups of countries can be explained by institutional factors.
- Benchmarking Côte d’Ivoire vs Mozambique:
  - Côte d’Ivoire underperformed relative to Mozambique.
  - Côte d’Ivoire underperformed relative to its estimated potential on the financial possibility frontier.
- Explanatory factors:
  - The authors identify policy and institutional asymmetries between Côte d’Ivoire and Mozambique that could explain the gap in performance.

### Subjects and keywords (as presented)
- Subjects: Bank credit, Banking, Credit, Financial markets, Financial sector development, Infrastructure, Legal support in revenue administration, Money, National accounts, Revenue administration
- Keywords: Bank credit, Benchmarking, contract enforcement, Credit, credit coverage, credit information collection, Financial development, Financial possibility frontier, Financial sector development, GDP, Global, Infrastructure, Legal support in revenue administration, Sub-Saharan Africa, WAEMU, WAEMU control variable, WAEMU region, WP

### Implications highlighted by the study
- Institutional quality is a central determinant of financial depth differences between WAEMU and higher-performing frontier SSA countries.
- Country-level benchmarking can reveal underperformance relative to structural peers and to estimated potential, guiding where policy and institutional reforms may be needed.
- Identifying policy and institutional asymmetries between specific country pairs (here, Côte d’Ivoire and Mozambique) provides a targeted base for reform priorities.

*Source: IMF Working Papers — "Financial Depth in the WAEMU: Benchmarking Against Frontier SSA Countries", Calixte Ahokpossi, Kareem Ismail, Sudipto Karmakar, Mesmin Koulet-Vickot, July 3, 2013, Working Paper No. 2013/161.*

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## Content in this bundle

- **2. Benchmarking WAEMU Countries Against Their Potential**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-depth-in-the-waemu-benchmarking-against-frontier-ssa-countries-40747_