MONETARY COOPERATION AND ECONOMIC-GROWTH IN AFRICA - COMPARATIVE EVIDENCE FROM THE CFA-ZONE COUNTRIES

This article compares economic growth performance of ten African count ries, all members of the CFA monetary zone, with that of 23 non-zone S ub-Saharan African (SSA) countries. Our descriptive results suggest th at, overall, African economies have experienced similar growth trends, which are higher in the 1970s than the 1980s. However, contrary to pr evious studies, disaggregated comparison of the CFA with the SSA indic ate that no significant growth differences exist between these economi es. Moreover, our empirical findings suggest that monetary expansion a nd capital formation have positive impacts on output growth, whereas i nflation, and government spending show negative effects. In sum, altho ugh participating in a monetary union has not necessarily resulted in faster output growth, it has enabled the CFA countries to better contr ol price fluctuations and monetary expansion.