Welcome to Francis Academic Press

The Frontiers of Society, Science and Technology, 2019, 1(8); doi: 10.25236/FSST.2019.010814.

Analysis of the Monetary and Financial System of the Dr Congo Place of Financial Intermediation on Economic Development



Corresponding Author:

Lanzhou Jiaotong University, China


The purpose of this work is to evaluate the effect of financial on economic development in the DR Congo. This work is based on two economic approach, the first using ordinary least squares(OLS), and the second is the causality test Granger and the instrumental variable method (2SLS, GMM, LIML). The results of four econometric approach reinforce and suggest that financial through intermediation has a positive and significant effect on economic development. Directly or through an indirect channel through inflation, exchange rate and money supply before impacting on the level of overall economic activity. The results also show the vulnerability of the financial intermediation function by Congolaise banking system in financing growth sectors with high demand of Congolaise work (agriculture, industry….), indeed, the share of companies as well as individuals is low and short term finance. Based on these results we can note that the DR Congo gourvment in monetary authorities have an interest in implementing reforms to promote the emergence and efficiency of the financial system to grown the sector such as agriculture, industry.


Financial system; Causality; Economic development

Cite This Paper

Valèry BAHATI KAMBALE. Analysis of the Monetary and Financial System of the Dr Congo Place of Financial Intermediation on Economic Development. The Frontiers of Society, Science and Technology (2019) Vol. 1 Issue 8: 78-89. https://doi.org/10.25236/FSST.2019.010814.


[1] Bagehot W (1873). Lombard Street: A Description of the Money Market. New york: E.P. Dutton and Comany.
[2] Berthélémy J-C, Varoudakis A. (1996). Economic Growth, Convergence Clubs, and the Role of Financial Development . Oxford Economic Papers, vol 48 pp300-328.
[3] Bomda J (2010). Intermediaton finammciere pour la croissance et la creation de richess en Afrique. Atelier Africa. Kinshasa RDCongo,pp.35
[4] Capelle-Blancard G, Couppey-Soubeyran J et de Boissieu Ch (2006). Le systeme bancaire et financier. Economica. 2ème édition. Chapitre 2, pp.4.
[5] Eggoh C (2009). Croissance Economique et Développement Financier: éléments d'analyse théorique et empirique. Université d'Orléans.
[6] Goldsmith, R (1969). Financial Structure and Development. New Haven: Yale University Press.
[7] Gorton G, Winton A (2002). Financial intermediation. NBER Working Paper, p140.
[8] Gurley J. & Shaw E. (1955). Financial Aspects of Economic Development. American Economic review, pp.45,415,538.
[9] Kabwe F (2015). Contribution des ressources minières sur la croissance économique en RDCongo. les Cahiers du CEDIMES WIP,pp.28.
[10] King R, Levine R (1993). Finance and Growth: Schumpeter Might be Right. Quarterly journal of Economics, vol.108, pp.717.
[11] Levine R (1997). Financial Development and economic Growth: Views and Agenda. Journal of Economic Literature, vol.35, pp.688-726.
[12] Loayza N, R Rancière (2002). Finamcial Development, Financial Fragility and Growth. Central Bank of Chile Working paper, pp.145.
[13] McKinnon R (1973). Money and Capital in Economic Development. Brooking Institution.
[14] Mishkin F (2007). Monnaie, banque et marchés financiers. Paris: Pearson Education.
[15] Paul G. (1992). Technological choice, financial markets and economic development. European Economic Review, vol.36, pp.763-781.
[16] Robinson J (1952). The Generalization of the General theory, the Rate of Interest and Other Essays. London: Macmillan pp 69-142.
[17] Schumpeter J (1911). A Theory of Economic Development. Cambridge: Harvard University Press.
[18] Shaw S (1973). Financial Deepening in economic Development. New York: Oxford University Press.