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