Financial system, trade concentration and economic growth in West African Monetary Zone (WAMZ)


  • Nenubari John Ikue University of Port Harcourt
  • Ifeanyichukwu Lucky Amabuike, Mr. Nnamdi Azikiwe University
  • Joseph Ade Ajaba, Mr. Ignatus Ajuru University of Education
  • John Akin Sodipo, Mr. Central Bank of Nigeria
  • Linus Bamekpari Enegesi, Mr. Central Bank of Nigeria



Demand-Lending Hypothesis, Import/Export Concentration and Financial-Deepening


It is observed that despite the legislative endorsement of the West Africa Countries there is still a glaring divergence in economic structures, which impedes the performance to realize macroeconomic convergence and economic growth within the region. This paper investigated the effects of trade and financial indexes in WAMZ on economic growth. The paper uses three variables and a host of control measures to focus on six countries of WAMZ covering the periods of 2001-2018. Given the heterogeneous nature of the information gathered for the study, the models are cast in static and dynamic panel frameworks that provided micro-structure for the combined data analysis. The models were tested with various econometric and statistical instruments. Results from the analysis show that exported trade is highly concentrated to fewer goods, while imported trade is concentrated on more products and partners; that is, countries in WAMZ tend to shadow liberal import policy. The weak link was also noticed among financial and trade indexes and economic growth in the WAMZ economies. The implications call for short term economic plans and policies in the WAMZ economies so as to collectively monitor economic policies and growth. We equally observed that the structures of the economies in the region are heterogeneous making it rather difficult for regional trade and financial indicators to accelerate output growth in the region. Thus our basic postulations are an inter-policy approach on social, political and economic (trade and finance) arrangements that would neutralize the heterogeneity and foster institutional and attitudinal reforms, eliminate insecurity challenges, and spur political stability and responsible leadership within the regions.


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How to Cite

Ikue, N. J., Amabuike, I. L., Ajaba, J. A., Sodipo, J. A., & Enegesi, L. B. (2020). Financial system, trade concentration and economic growth in West African Monetary Zone (WAMZ). International Journal of Research in Business and Social Science (2147- 4478), 9(4), 426–436.