Simplice A., Asongu (2011): Globalization, financial allocation efficiency and regional economic dynamics: asymmetric panel evidence from Africa.
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This paper examines how regionalization in the face of globalization has affected financial development in the context of banking system efficiency in Africa. Results which are robust to financial system efficiency and growth-led-finance nexus reveal that in the post-regionalization era: (1) UEMOA and CEMAC regional banks’ ability to finance credit by deposits has reduced; (2) financial institutions of COMESA have improved their capacity to fund openness related activities/projects with deposits; (3) increase in welfare has positively affected the intermediary role of banks; (4) globalization tends to be more detrimental to financial systems of ‘economic and monetary’ regions than to those of purely economic regions. As a policy implication, national and regional authorities should gain knowledge of the fact that with openness, the role of domestic and regional banks seems to lessen in the funding of openness related activities and projects. Much needs to be done on the improvement of infrastructure that curtails information asymmetry in the banking industry.
|Item Type:||MPRA Paper|
|Original Title:||Globalization, financial allocation efficiency and regional economic dynamics: asymmetric panel evidence from Africa|
|Keywords:||Globalization; Financial Development; Regional Integration; Panel; Africa|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
D - Microeconomics > D6 - Welfare Economics > D60 - General
A - General Economics and Teaching > A1 - General Economics > A10 - General
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General
P - Economic Systems > P5 - Comparative Economic Systems > P50 - General
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||05. Oct 2011 21:42|
|Last Modified:||13. Feb 2013 02:10|
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