Did Mali Benefit from Joining the CFA Zone? An Analysis Using the Synthetic Control Method

This article examines the benefits of CFA zone's membership by estimating the effects of joining the CFA zone on GDP per capita and other macroeconomic fundamentals in Mali. Using the synthetic control method (SCM), we show that Mali's CFA membership has a positive effect on its income, inflation, and foreign direct investment (FDI) but no discernible effect on its trade with France. We conclude that joining the CFA zone can generate potential economic gains for countries seeking membership by fostering growth and providing price stability but does not necessarily increase trade relations with France even though the CFA is a former French colonial currency