Growth and Convergence in WAEMU Countries

36 Pages Posted: 9 Feb 2006

See all articles by Abdoul Aziz Wane

Abdoul Aziz Wane

International Monetary Fund (IMF) - African Department

Date Written: October 2004


This paper investigates convergence and dynamic effects of human and physical capital on growth, in WAEMU countries. Using recently developed models for panel data and a growth accounting model, the study finds that growth is largely explained by changes in literacy rates and factor accumulation, but not by growth of total factor productivity (TFP). Nevertheless, the panel estimation identifies aid, government spending, credit to the private sector, and openness as positive determinants of TFP growth, and government deficits as a negative determinant. The study also finds that per capita income in lower-income WAEMU countries converge to per capita income in higher-income ones when economic policies are similar. These results suggest opportunities for policymakers to enhance growth and convergence.

Keywords: Growth, Convergence, TFP growth, WAEMU, PMGE, Fixed effects

JEL Classification: D82, F35, 130, O23, O40

Suggested Citation

Wane, Abdoul Aziz, Growth and Convergence in WAEMU Countries (October 2004). IMF Working Paper No. 04/198. Available at SSRN:

Abdoul Aziz Wane (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

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