Monetary co‐operation and economic growth in Africa: Comparative evidence from the CFA‐zone countries

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Abstract
This article compares economic growth performance of ten African countries, all members of the CFA monetary zone, with that of 23 non‐zone Sub‐Saharan African (SSA) countries. Our descriptive results suggest that, overall, African economies have experienced similar growth trends, which are higher in the 1970s than the 1980s. However, contrary to previous studies, disaggregated comparison of the CFA with the SSA indicate that no significant growth differences exist between these economies. Moreover, our empirical findings suggest that monetary expansion and capital formation have positive impacts on output growth, whereas inflation, and government spending show negative effects. In sum, although participating in a monetary union has not necessarily resulted in faster output growth, it has enabled the CFA countries to better control price fluctuations and monetary expansion.