The Transmission Channels from Financial Development to Economic Growth: An Empirical Analysis in the CEMAC Zone

This article provides an empirical assessment of the transmission channel of the relationship between financial development and the sources of economic growth, namely, the growth rate of GDP per capita, the growth rate of capital and global productivity of factors. The analysis covers the period 1985 - 2014 and covers a sample of six countries of the Economic and Monetary Community of Central Africa (CEMAC). Using econometrics of panel data methodology, we show that the predominant transmission channel from financial development to growth is that of factor productivity. Concerning resources collection, financial development affects economic growth positively; while difficulties in accessing bank credit freezes the financing of productive investment and damage economic growth. In other to let financial development useful to economic development, it is necessary to adopt appropriate financial policies. Keywords: Financial Development, Economic Growth, Panel data, CEMA