Macroeconomic factors and dynamics of financial deepening : an empirical investigation applied to the CEMAC sub-region

This article empirically estimates a micro-founded model with the aim to investigate the leading macroeconomic determinants and dynamics of financial deepening in the CEMAC sub-region. For this purpose, we adopted an empirical investigation in both static and dynamic panel data econometrics which has led to the following global recommendations: firstly, the CEMAC sub-region authorities should implement expansionary policies of GDP growth rate, population density, savings rate and exchange rate. Secondly, they should review their policy of trade liberalization since it appears to be negatively related to financial deepening. Concerning the dynamic aspect, a convergent dynamic and the feasibility of common monetary policy targeting depth in CEMAC sub-region have been highlighted.