Financial Development and Sectoral Growth In the West African Monetary Zone

Patricia Ozioma Ifeanyi; Josaphat U.J. Onwumere; Ebere Ume Kalu; Wilfred Isioma Ukpere

doi:10.54609/reaser.v29i1.759

Financial Development and Sectoral Growth In the West African Monetary Zone

Patricia Ozioma Ifeanyi, Josaphat U.J. Onwumere, Ebere Ume Kalu, Wilfred Isioma Ukpere

Research output: Contribution to journal › Article › peer-review

Abstract

This study adopts a panel estimation technique in evaluating the responsiveness of sectoral growth to financial development in the West African Monetary Zone (WAMZ). Financial development is disaggregated into bank development measured by the ratio of credit to the private sector to gross domestic product, while market development is measured as the quotient of market capitalization to economic growth, and insurance penetration is measured by aggregate premium over economic growth. The results arising from this study hold that financial development positively affects the growth of the agricultural, manufacturing and service sectors in the WAMZ. In line with the supply-leading hypothesis, it is recommended that the financial system development should be pursued to accentuate an all-inclusive growth of a growth-seeking region like WAMZ.

Original language	English
Pages (from-to)	77-94
Number of pages	18
Journal	Review of Applied Socio-Economic Research
Volume	29
Issue number	1
DOIs	https://doi.org/10.54609/reaser.v29i1.759
Publication status	Published - 30 Jun 2025
Externally published	Yes

Keywords

Agricultural Growth
Financial Development
Manufacturing Growth
WAMZ

ASJC Scopus subject areas

Business and International Management
Social Sciences (miscellaneous)
Economics and Econometrics
Marketing
Management of Technology and Innovation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.54609/reaser.v29i1.759

Cite this

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title = "Financial Development and Sectoral Growth In the West African Monetary Zone",

abstract = "This study adopts a panel estimation technique in evaluating the responsiveness of sectoral growth to financial development in the West African Monetary Zone (WAMZ). Financial development is disaggregated into bank development measured by the ratio of credit to the private sector to gross domestic product, while market development is measured as the quotient of market capitalization to economic growth, and insurance penetration is measured by aggregate premium over economic growth. The results arising from this study hold that financial development positively affects the growth of the agricultural, manufacturing and service sectors in the WAMZ. In line with the supply-leading hypothesis, it is recommended that the financial system development should be pursued to accentuate an all-inclusive growth of a growth-seeking region like WAMZ.",

keywords = "Agricultural Growth, Financial Development, Manufacturing Growth, WAMZ",

author = "Ifeanyi, \{Patricia Ozioma\} and Onwumere, \{Josaphat U.J.\} and Kalu, \{Ebere Ume\} and Ukpere, \{Wilfred Isioma\}",

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day = "30",

doi = "10.54609/reaser.v29i1.759",

language = "English",

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journal = "Review of Applied Socio-Economic Research",

issn = "2247-6172",

publisher = "Pro Global Science Association",

number = "1",

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T1 - Financial Development and Sectoral Growth In the West African Monetary Zone

AU - Ifeanyi, Patricia Ozioma

AU - Onwumere, Josaphat U.J.

AU - Kalu, Ebere Ume

AU - Ukpere, Wilfred Isioma

PY - 2025/6/30

Y1 - 2025/6/30

N2 - This study adopts a panel estimation technique in evaluating the responsiveness of sectoral growth to financial development in the West African Monetary Zone (WAMZ). Financial development is disaggregated into bank development measured by the ratio of credit to the private sector to gross domestic product, while market development is measured as the quotient of market capitalization to economic growth, and insurance penetration is measured by aggregate premium over economic growth. The results arising from this study hold that financial development positively affects the growth of the agricultural, manufacturing and service sectors in the WAMZ. In line with the supply-leading hypothesis, it is recommended that the financial system development should be pursued to accentuate an all-inclusive growth of a growth-seeking region like WAMZ.

AB - This study adopts a panel estimation technique in evaluating the responsiveness of sectoral growth to financial development in the West African Monetary Zone (WAMZ). Financial development is disaggregated into bank development measured by the ratio of credit to the private sector to gross domestic product, while market development is measured as the quotient of market capitalization to economic growth, and insurance penetration is measured by aggregate premium over economic growth. The results arising from this study hold that financial development positively affects the growth of the agricultural, manufacturing and service sectors in the WAMZ. In line with the supply-leading hypothesis, it is recommended that the financial system development should be pursued to accentuate an all-inclusive growth of a growth-seeking region like WAMZ.

KW - Agricultural Growth

KW - Financial Development

KW - Manufacturing Growth

KW - WAMZ

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M3 - Article

AN - SCOPUS:105010875005

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JF - Review of Applied Socio-Economic Research

IS - 1

ER -

Financial Development and Sectoral Growth In the West African Monetary Zone

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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