Effets de la qualité des institutions sur l’inclusion financière des pays de la CEDEAO

Abstract

This article assesses the effects of institutional quality on financial inclusion in ECOWAS countries. The main component analysis (PCA) selected two indicators. The econometric tests suggest the use of an error-correcting model. The Hausman test led to the choice of the PMG estimator. For the estimates, we considered all six (06) indicators of institutional quality. The model is globally significant because the coefficient measuring the force of recall to long-term equilibrium is negative and significant at 1%. Of the six (06) indicators of institutional quality, three are significant and positive in the long term and one is significant in the short term. These include: citizen voice and accountability, stability and non-violence, and quality of regulation. In terms of stability and non-violence, we are achieving a positive and significant impact on financial inclusion. The result shows a need for a stable institutional environment to foster demographic and geographic penetration of financial services (Ongo Nkoa and Song, 2020).