Urbanization and financial inclusion in WAEMU countries: Heterogeneity approach
Keywords:
Urbanisation, Financial inclusion, WAEMUAbstract
The objective of this study is to evaluate the effect of urban development on financial inclusion in the WAEMU zone. Methodologically, we use Swamy's (1970) random coefficient model to capture the heterogeneity of the dynamics between urbanisation and financial inclusion. The results reveal this heterogeneity. Urbanisation is a determinant of financial inclusion only in Burkina Faso, Côte d'Ivoire, Senegal and Togo. On the other hand, urbanisation has a negative influence on financial inclusion in Mali. There is no relationship between urbanisation and financial inclusion in Benin. To benefit from the virtues of urbanisation, it must be able to generate decent jobs.
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