Effect of the convergence criteria pact on financial performance in the WAEMU zone

Abstract

Nominal convergence is regularly monitored and there is growing interest in the WAEMU area. However, few studies have focused on the real convergence of WAEMU countries and in particular the contribution of the Convergence, Stability and Growth and Solidarity Pact (PCSCS) to the dynamics of real convergence. The aim of this Communication is to analyse the effect of the Pact on the dynamics of real convergence. After examining the concept of sigma-convergence and convergence in distribution, we use here the beta-convergence approach with panel data to take into account the differences in the state of technology of the countries. Thus, the adoption of the CCP has improved the overall standard of living of the member countries of the Union. However, the study has some limitations, including the reduced temporal dimension and the failure to take into account the non-monetary aspects of poverty. . The policy mix is defined as the coordination between national fiscal policies and the common monetary policy, which is necessary in monetary union.