Long-term Bank Financing of Productive Investments and Economic Growth in French-speaking African Countries

Abstract

This study focuses on the influence of long-term bank financing of investments on economic growth in French-speaking African countries over the period 2004-2022. The empirical evaluation of this link is made through a dynamic panel model and the generalized method of moments. The results indicate that long-term bank financing expressed as a percentage of the total credit offered has a positive and significant impact on economic growth in these countries. In addition, gross domestic savings positively and significantly affect economic growth. It seems essential that the public and monetary authorities implement incentive measures to encourage the more significant collection of savings and encourage banks to boost the supply of long-term loans by the more significant transformation of maturities.