The Comparative African Regional Economics of Globalization in Financial Allocation Efficiency: Pre-Crisis Era Revisited

Asongu, Simplice and Nnanna, Joseph and Tchamyou, Vanessa (2019): The Comparative African Regional Economics of Globalization in Financial Allocation Efficiency: Pre-Crisis Era Revisited. Published in: Financial Innovation , Vol. 6, No. 3 (January 2020): pp. 1-41.

Abstract

The study assesses the role of globalization-fuelled regionalization policies on financial allocation efficiency in four economic and monetary regions in Africa for the period 1980 to 2008. Banking system and financial system efficiency proxies are used as dependent variables whereas seven bundled and unbundled globalization variables are employed as independent indicators. The bundling exercise is achieved by means of principal component analysis while the empirical evidence is based on interactive Fixed Effects regressions. The following findings are established. First, financial allocation efficiency is more sensitive to financial openness compared to trade openness and most sensitive to globalization. The relationship between allocation efficiency and globalization-fuelled regionalization policies is: (i) Kuznets or inverted U-shape in the UEMOA and CEMAC zones (evidence of decreasing returns to allocation efficiency from globalization-fuelled regionalization) and (ii) U-shape overwhelmingly in the COMESA and scantily in the EAC (increasing returns to allocation efficiency from globalization-fuelled regionalization). Established shapes are relevant to specific globalization dynamics within regions. Economic and monetary regions are more prone to surplus liquidity than purely economic regions. Policy implications and measures of fighting surplus liquidity are discussed.

• Item Type: MPRA Paper
• Language: English
• Keywords: Globalization; Financial Development; Regional Integration; Panel; Africa
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; D - Microeconomics > D6 - Welfare Economics > D60 - General; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; P - Economic Systems > P5 - Comparative Economic Systems > P50 - General

References

Akpan, U. S. (2014). “Impact of Regional Road Infrastructure Improvement on Intra-Regional Trade in ECOWAS”, African Development Review, 26(S1), pp. 64-76.

Al-Obaidan, A, M., (2008). “Efficiency Effect of Openness in the Banking Industry of Emerging Markets”, International Research Journal of Finance and Economics, 17, pp.92-104.

Andrés, A. R., Asongu, S. A., & Amavilah, V. H. S., (2015). “The Impact of Formal Institutions on Knowledge Economy”, Journal of the Knowledge Economy, 6(4), pp. 1034-1062.

Arestis, P., Demetriades, P. O., Fattouh, B., & Mouratidis, K., (2002). “The impact of financial liberalisation policies on financial development: evidence from developing countries”, International Journal of Finance and Economics, 7(2), pp. 109-121.

Ashraf, Q. & Galor, O., (2013). “The Out of Africa Hypothesis, Human Genetic Diversity,and Comparative Economic Development”. American Economic Review, 103(1), pp. 1-46.

Asongu, S. A. (2012a). “Law and finance in Africa”, Brussels Economic Review, 55(4), pp. 385-408.

Asongu, S. A., (2012b). “Bank efficiency and Openness in Africa: Do Income Levels Matter”, Review of Finance and Banking, 4(2), pp. 115-122.

Asongu, S. A., (2013a). “African Stock Market Performance Dynamics: A Multidimensional Convergence Assessment”, Journal of African Business, 14(3), pp. 186-201.

Asongu, S. A. (2013b). “How Has Politico-Economic Liberalization Affected Financial Allocation Efficiency? Fresh African Evidence”, Economics Bulletin, 33(1), pp. 663-676.

Asongu, S. A., (2013c). “Real and Monetary Policy Convergence: EMU Crisis to the CFA Zone”, Journal of Financial Economic Policy, 5(1), pp. 20-38.

Asongu, S. A., (2014a). “Correcting inflation with financial dynamic fundamentals: which adjustments matter in Africa?”, Journal of African Business, 15(1), pp. 64-73.

Asongu, S. A., (2014b). “Financial development dynamic thresholds of financial globalization: Evidence from Africa”, Journal of Economic Studies, 41(2), pp. 166-195.

Asongu, S. A., (2014c). “Linkages between investment flows and financial development: Causality evidence from selected African countries”, African Journal of Economic and Management Studies, 5(3), pp. 269-299.

Asongu, S. A., (2017). “Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa”, Journal of the Knowledge Economy, 9(1), pp. 81–135.

Asongu, S. A., (2016). “Drivers of Growth in Fast Developing Countries: Evidence from Bundling and Unbundling Institutions”, Politics & Policy, 44(1), pp. 97-134.

Asongu, S. A., & Acha-Anyi, P. N. (2017). “ICT, conflicts in financial intermediation and financial access: evidence of synergy and threshold effects”, Netnomics, 18(2-3), pp. 131–168.

Asongu, S. A., & De Moor, L., (2015). “Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects”, African Governance and Development Institute Working Paper No. 15/040, Yaoundé.

Asongu, S. A., & De Moor, L., (2017). “Financial globalisation dynamic thresholds for financial development: evidence from Africa”, The European Journal of Development Research, 29(1), pp. 192–212.

Asongu, S. A., De Moor, L., & Tchamyou, S. V., (2015a). “Pre- and Post-Crisis Dynamics of Financial Globalisation for Financial Development in Africa”, African Governance and Development Institute Working Paper No. 15/045, Yaoundé.

Asongu, S. A., Efobi, U., & Beecroft, I., (2015b). “Inclusive Human Development in Pre-Crisis Times of Globalisation-Driven Debts”, African Development Review, 27(4), pp. 428-442.

Asongu, S., & Nwachukwu, J. C., (2015). “The Incremental Effect of Education on Corruption: Evidence of Synergy from Lifelong Learning”, Economics Bulletin, 35(4), pp. 2288-2308.

Asongu, S. A., & Kodila-Tedika, O., (2017). “Is Poverty in the African DNA (Gene)?”, South African Journal of Economics, 85(4), pp. 533-552.

Asongu, S. A., & Kodila-Tedika, O., (2018). “Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates”. Social Indicators Research, 139(1), pp. 99-117.

Asongu, S. A., & le Roux, S., (2019). “Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy”, International Journal of Public Administration, 42(6), pp. 457-467.

Asongu, S. A., le Roux, S.,& Tchamyou, V. S., (2019). “Essential information sharing thresholds for reducing market power in financial access: a study of the African banking industry”, Journal of Banking Regulation, 20(1), pp. 34–50.

Asongu, S., & Nwachukwu, J. C., (2016a). “The role of lifelong learning on political stability and non violence: evidence from Africa”, Journal of Economic Studies, 43(1), pp. 141-164.

Asongu, S., & Nwachukwu, J. C., (2016b). “Revolution empirics: predicting the Arab Spring”, Empirical Economics, 51(2), pp. 439–482.

Asongu, S. A., & Odhiambo, N. M., (2019a). “Insurance Policy Thresholds for Economic Growth in Africa”, The European Journal of Development Research. DOI: 10.1057/s41287-019-00234-2.

Asongu, S. A., & Odhiambo, N. M., (2019b). “How Enhancing Gender Inclusion Affects Inequality: Thresholds of Complementary Policies for Sustainable Development”, Sustainable Development. DOI: 10.1002/sd.1977.

Ataullah, A., Cockerill, T., & Le, H., (2004). “Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan”, Applied Economics, 36(17), pp. 1915-1924.

Ba, J., & Ng S (2006). “Confidence intervals for diffusion index forecasts and inference for factor-augmented regression”, Econometrica, 74(4), pp. 1133-1150.

Bai, J., (2003). “Inferential theory for factor models of large dimensions”. Econometrica, 71 (1), pp.135-173.

Bai, J., (2009). “Panel data models with interactive fixed effects”. Econometrica, 77(4), pp. 1229- 1279.

Baltagi, B.H., Demetriades, P.O., & Law, S. H.,(2009), “Financial Development and Openness: evidence from panel data”, Journal of Development Economics, 89(2), pp.285-296.

Baricako, J., & Ndongo, G. X. D., (2014). “Intégration régionale et croissance: Le cas de l'Afrique Centrale”,African Development Review, 26(S1), pp. 33-51.

Batuo, M. E., (2015). “The Role of Telecommunications Infrastructure In The Regional Economic Growth of Africa”, The Journal of Development Areas, 49(1), pp. 313-330.

Batuo, M. E., & Asongu, S. A., (2015). “The impact of liberalisation policies on income inequality in African countries”, Journal of Economic Studies, 42(1), pp. 68-100.

Batuo, M. E., Guidi, F., & Kupukile, M., (2010, August). “Financial Development and Income Inequality: Evidence from African countries”, African Development Bank, Tunis.

Boyd, J. H., Levine, R., &Smith, B. D., (2001). “The impact of inflation on financial sector performance”, Journal of Monetary Economics, 47, pp. 221-248.

Brambor, T., Clark, W. M., & Golder, M., (2006). “Understanding Interaction Models: Improving Empirical Analyses”, Political Analysis, 14 (1), pp. 63-82.

Chao, X., Kou, G., Peng, Y., & Alsaadi, F. E., (2019). “Behavior Monitoring Methods for Trade-based Money Laundering integrating Macro and Micro Prudential Regulation: A case from China”, Technological and Economic Development of Economy, DOI: https://doi.org/10.3846/tede.2019.9383

Charaf-Eddine, N., & Strauss, I., (2014). “The Ten Commandments of Applied Regional Integration Analysis: The African Case”, African Development Review, 26(S1), pp. 7-20.

Chen, C., (2009). “Bank Efficiency in Sub-Saharan African Middle-Income Countries”, IMF Working Paper, No. WP/09/14, Washington.

Chen, G-M., Firth, M., & Rui, O. M. (2002). “Stock market linkages: evidence from Latin America”, Journal of Banking and Finance, 26(6), pp. 1113-1141.

Cho, Y. J., (1986). “Inefficiencies of financial liberalization in the absence of well-functioning equity markets”. Journal of Money, Credit and Banking, 18 (2), pp. 191-199.

Claessens, Stijn, Demirgüç-Kunt, A, & Huizinga, H. (2001,May). “How does foreign entry affect the domestic banking market?” Journal of Banking and Finance 25(5) , pp. 891–911.

Cummins, J. (2000). Language, power and pedagogy: Bilingual children in the crossfire. Clevedon, England: Multilingual Matters.

Demirguc-Kunt, A., Beck, T., & Levine, R., (1999), “A New Database on Financial Development and Structure”, International Monetary Fund, WP 2146, Washington D.C.

Demirguc-Kunt, A., & Beck, T., (2009, May), “Financial Institutions and Markets Across Countries over time: Data and Analysis”, World Bank Policy Research Working Paper No. 4943, Washington D.C.

Easterly, W., (2005). “What did structural adjustment adjust? The association of policies and growth with repeated IMF and World Bank adjustment loans,” Journal of Development Economics, 76(1), pp. 1-22.

Ebaidalla, E. M., &Yahia, A. M., (2014). “Performance of Intra-COMESA Trade Integration: A Comparative Study with ASEAN's Trade Integration”, African Development Review, 26(S1), pp. 77-95.

Fischer, S., (1998). “Capital Account Liberalisation and the Role of the IMF”, in “Should the IMF Pursue Capital-Account Convertibility?”, Essays in International Finance, Department of Economics, Princeton University, 207, pp. 1-10.

Fosu, A. K., (2015). “Growth, Inequality and Poverty in Sub-Saharan Africa: Recent Progress in a Global Context”, Oxford Development Studies, 43(1), pp. 44-59.

Fouda, O. J. P., (2009). “The excess liquidity of banks in Franc zone: how to explain the paradox in the CEMAC”, Revue Africaine de l’Integration, 3(2), pp. 1-56.

Greenaway-McGrevy, R., Han, C., & Sul, D., (2012). “Asymptotic distribution of factor augmented estimators for panel regression”. Journal of Econometrics, 169 (1), pp. 48-53.

Greenwood, J., & Jovanovic, B., (1990). “Financial development, growth and distribution of income”, Journal of Political Economy, 98(5), pp. 1076-1107.

Gries, T., Kraft, M., & Meierrieks, D., (2009), “Linkages between financial deepening, trade openness, and economic development: causality evidence from Sub-Saharan Africa”, World Development, 37(12), pp. 1849-1860.

Hanh, P. T. H., (2010), “Financial Development, Financial Openness and Trade Openness: New evidence”, CARE – EMR, University of Rouen, France, Rouen.

Hauner, D., & Peiris, S. J., (2005). “Bank Efficiency and Competition in Low-Income Countries: The Case of Uganda”, IMF Working Paper, No. WP/05/240, Washington.

Henry, P. B., (2007). “Capital Account Liberalization: Theory, Evidence and Speculation”, Journal of Economic Literature, 45(4), pp. 887-935.

Huang, Y., (2011). “Private Investment and financial development in a globalised world”, Empirical Economics, 41(1), pp. 43-56.

Huybens, E., & Smith, B. D., (1999). “Inflation, financial markets and long-run real activity”, Journal of Monetary Economics, 43(2), pp. 283-315.

Im, K.S., Pesaran, M.H., & Shin, Y., (2003), “Testing for unit roots in heterogeneous panels”, Journal of Econometrics, 115(1), pp.53-74.

Irving, J.,(2005). “Regional Integration of Stock Exchanges in Eastern and Southern Africa: Progress and Prospects”. IMF Working Paper 05/ 122, Washington.

Janine, A., & Elbadawi, I. A., (1992). “Parallel Markets, the foreign Exchange Auction, and Exchange Rate Unification in Zambia”, World Bank Policy Working Paper No. 909, The World Bank, Washington.

Javid, E., & Katircioglu, S. T. (2017). “The globalization indicators-tourism development nexus: a dynamic panel-data analysis”, Asia-Pacific Journal of Tourism Research, 22(11), pp. 1194-1205.

Jolliffe, I. T., (2002). Principal Component Analysis (2nd Ed.), New York: Springer.

Kablan, S., (2009). “Mesure de l'Efficacité des Banques dans les Pays en Voie de Développement: Le Cas de l'Union Economique et Monetaire Ouest Africaine (UEMOA) ”, African Development Review, 21(2), pp. 367-369.

Kablan, S., (2010). “Banking efficiency and financial development in Sub-Saharan Africa”, IMF Working Paper No.10/136, Washington.

Kaiser, H. F., (1974). “An index of factorial simplicity”. Psychometrika, 39(1), pp. 31-36.

Katircioglu, S., & Zabolotnov, A. (2019). “Role of Financial Development in Economic Globalization: Evidence from Global Panel”, Applied Economics Letters, DOI: 10.1080/13504851.2019.1616058).

Kandiero, T., & Chitiga, M.,(2003, October), “Trade Openness and Foreign Direct Investment in Africa”, Department of Economics, University of Pretoria, Pretoria.

Kayizzi-Mugerwa, S., Anyanwu, J. C., & Conceição, P., (2014). “Regional Integration in Africa: An Introduction”, African Development Review, 26(S1), pp. 1-6.

Kholdy, S., & Sohrabian, A., (2008). “Foreign direct investment, financial markets, and political corruption”, Journal of Economic Studies, 35 (6), pp. 486-500.

Kim, D., Lin, S., & Suen, Y., (2010), “Dynamic effects of trade openness on financial development”, Economic Modeling, 27(1), pp. 254-261.

Kim, S. J., Moshirian, F., & Wu, E. (2005). “Dynamic stock market integration driven by the European Monetary Union: an empirical analysis”, Journal of Banking and Finance, 29(10), pp. 2475- 2502.

Kiyota, H., (March 2009). “Efficiency of commercial banks in Sub-Saharan Africa: a comparative analysis of domestic and foreign banks”, Asian Development Bank Institute, Tokyo.

Kose, M. A., Prasad, E. S., & Taylor, A. D., (2011). “Threshold in the process of international financial integration”, Journal of International Money and Finance, 30(1), pp. 147-179.

Kose, M. A., Prasad, E. S., & Rogoff, K., Wei, S. J., (2006). “Financial globalization: a reappraisal”, IMF Staff Papers, 56(1), pp. 8-62.

Kose, M. A., Prasad, E. S., & Taylor, A. D., (2011). “Threshold in the process of international financial integration”, Journal of International Money and Finance, 30(1), pp. 147-179.

Kose, M. A., Prasad, E. S., & Rogoff, K., Wei, S. J., (2006). “Financial globalization: a reappraisal”, IMF Staff Papers, 56(1), pp. 8-62.

Kou, G., Chao, X., Peng, Y., & Alsaadi, F. E., (2019a). “Machine learning methods combined with financial systemic risk”, Technological and Economic Development of Economy, DOI: https://doi.org/10.3846/tede.2019.8740

Kou, G., Yang, P., Xiao, F., Chen, Y., & Alsaadi, F. E., (2019b). “Evaluation of feature selection methods for text classification with small datasets using multiple criteria decision-making methods”, Applied Soft Computing, DOI: https://doi.org/10.1016/j.asoc.2019.105836.

Kou, G., Ergu, D., Chen, Y., & Lin, C., (2016). “Pairwise comparison matrix in multiple criteria decision making”, Technological and Economic Development of Economy, 22(5), pp. 738-765

Kou, G., Lu, Y., Peng, Y., & Shi, Y., (2012). “Evaluation of Classification Algorithms using MCDM and Rank Correlation”, International Journal of Information Technology & Decision Making, 11(1), pp. 197-225.

Kou, G., Peng, Y., & Wang, G., (2014). “Evaluation of clustering algorithms for financial risk analysis using MCDM methods”, Information Sciences, 275(August), pp. 1-12

Kukenova, M., (2011). “Financial liberalization and allocative effective of capital”, World Bank Policy Research Working Paper No. 5670, Washington D.C.

Leung, H. M., (2003). “External debt and worsening business cycles in less developed countries”, Journal of Economic Studies, 30(2), pp. 155-168.

Levin, A., Lin, C.F., & Chu, C.S., (2002), “Unit root tests in panel data: asymptotic and finite-sample properties”, Journal of Econometrics, 108(1), pp. 1-24.

Levine, R., (1997). “Financial development and economic growth: Views and agenda”, Journal of Economic Literature, 35(2), pp. 688-726.

Levine, R., (2003a). “More on finance and growth: More finance, more growth”, The Federal Reserve Bank of St. Louis, St. Louis. July/August.

Levine, R., (2003b). “Finance and growth: Theory and evidence”, in Aghion & Durlauf (eds.) Handbook of Economic Growth, Amsterdam: North-Holland.

Li, G., Kou, G., & Peng, Y., (2016). “A group decision making model for integrating heterogeneous information”. IEEE Transactions on Systems, Man, and Cybernetics: Systems, DOI: http://dx.doi.org/10.1109/tsmc.2016.2627050

Li, T., Kou, G., Peng, Y., & Shi, Y., (2014). “Classifying With Adaptive Hyper-Spheres: An Incremental Classifier Based on Competitive Learning”, IEEE Transactions on Systems, Man, and Cybernetics: Systems, pp. 1-12. DOI: https://doi.org/10.1109/TSMC.2017.2761360.

Liew, K. V.S., (2004), “Which lag selection criteria should we employ”, Economics Bulletin, 3(33), pp.1-9.

Maddala, G.S., & Wu, S. (1999), “A Comparative Study of Unit Root test with Panel Data and New Simple test”, Oxford Bulletin of Economics and Statistics, 61(S1), pp. 631-652.

Mbabazi, J., Milner, C., & Morrissey, O., (2008), “Trade Openness, Trade Cost and Growth: Why Sub-Saharan Africa Performs Poorly”, Centre for Research in Economic Development and International Trade, University of Nottingham.

McKenzie C, R., & McAleer M (1997). “On efficient estimation and correct inference in models with generated regressors: A general approach.” Japanese Economic Review, 48(4), pp. 368-389.

Meniago, C., & Asongu, S. A., (2018). “Revisiting the finance-inequality nexus in a panel of African countries”, Research in International Business and Finance, 46 (December), pp. 399- 419.

Mensah, E., Abor, J., Aboagye, A.Q.Q., & Adjasi, C. K. D., (2012). Enhancing the Economic Growth of Africa: Does Banking Sector Efficiency Matter?, in Kojo Menyah, Joshua Abor (ed.) Finance and Development in Africa (Research in Accounting in Emerging Economies, Volume 12 Part B) Emerald Group Publishing Limited, pp.1 - 23.

Motelle, S., & Biekpe, N., (2015). “Financial integration and stability in the Southern African development community”, Journal of Economics and Business, 79(May-June, 2015), pp. 100-117.

Mulwa, M. R., Emrouznejad, A., & Murithi, F. M., (2009). “Impact of liberalization on efficiency and productivity of sugar industry in Kenya”, Journal of Economic Studies, 36 (3), pp. 250 -264.

Njifen, I., (2014). “L'informalité: un nouveau paradigme de développement et d'intégration « par le bas » en Afrique” , African Development Review, 26(S1), pp. 21-32.

Nshimbi, C. C., & Fioramonti, L., (2014). “The Will to Integrate: South Africa's Responses to Regional Migration from the SADC Region”, African Development Review, 26(S1), pp. 52-63.

Obstfeld, M., (1998). “The Global Capital Market: Benefactor or Menace?” Journal of Economic Perspectives, 12(4), pp. 9-30.

Ofa, S. V., & Karingi, S., (2014). “Trade in Intermediate Inputs and Trade Facilitation in Africa's Regional Integration”, African Development Review, 26(S1), pp. 96-110.

Okeahalam, C.C., (2001, March). “Strategic Alliances and Mergers of Financial Exchanges: The Case of the SADC”, Centre for the Study of African Economies, Oxford University.

Oxley L, & McAleer, M., (1993). “Econometric issues in macroeconomic models with generated regressors.” Journal of Economic Surveys, 7(1), pp. 1-40.

Pagan, A., (1984). “Econometric issues in the analysis of regressions with generated regressors” International Economic Review, 25(1), pp. 221-247.

Peria, M., Soledad, M, & Mody, A., (2003), “How foreign participation and market concerntration impact bank spreads: Evidence from latin America”, World Bank, Washington D.C.

Pesaran, M. H., (2006). “Estimation and inference in large heterogeneous panels with a multifactor error structure”. Econometrica, 74 (4), pp. 967-1012.

Price, G. N., & Elu, J. U., (2014). “Does regional currency integration ameliorate macroeconomic shocks in sub-Saharan Africa? The case of the 2008-2009 global financial crisis”, Journal of Economic Studies, 41(5), pp. 737-750.

Rajan, R.G., & Zingales, L., (2003), “The great reversals: the politics of financial development in the twentieth century”, Journal of Financial Economics, 69(1), pp.5–50.

Rodrik, D., (1998). “Who Needs Capital-Account Convertibility?” Essays in International Finance, No. 207 (Princeton, New Jersey: Princeton University).

Rodrik, D., & Subramanian, A., (2009). “Why did financial globalization disappoint?”, IMF Staff Papers, 56(1), pp. 112-138.

Rogoff, K., S., (1999). “International Institutions for Reducing Global Financial Instability”, Journal of Economic Perspectives, 13(4), pp. 21-42.

Roller, L-H., & Waverman, L., (2001). “Telecommunications infrastructure and economic development: a simultaneous approach”, American Economic Review, 91(4), pp. 909-923.

Saint Paul, G., (1992). “Technological choice, financial markets and economic development”, European Economic Review, 36(4), pp. 763-781.

Sathye, M., (2003). “Efficiency of banks in the developing economy: The case of India”, European Journal of Operational Research, 148(3), pp. 662-671.

Saxegaard, M., (2006). “Excess liquidity and effectiveness of monetary policy: evidence from sub-Saharan Africa”, IMF Working Paper No. 06/115, Washington.

Shuaibu, M. (2015). “Trade Liberalization and Intra-Regional Trade: A Case of Selected ECOWAS Countries”, African Development Review, 27(1), pp. 27-40.

Solow, R., M., (1956). “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, 70(1), pp. 65-94.

Spatarenu, M., & Manole, V., (2010), “Trade Openness and Income: a re-examination”, Economic Letters, 106(1), pp.1-3.

Staub, R. B., Souza, G., & Tabak, B.M., (2010), “Evolution of bank efficiency in Brazil: A DEA approach”, European Journal of Operational Research, 202(1), pp.204-213.

Stock, J. H. & M. W. Watson (2002). “Forecasting using principal components from a large number of predictors”. Journal of the American Statistical Association, 97 (460), pp.1167-1179.

Summers, L. H., (2000). “International Financial Crises: Causes, Prevention and Cures”, American Economic Review, 90(2), pp. 1-16.

Tchamyou, V. S., (2017). “The role of knowledge economy in African Business”, Journal of the Knowledge Economy, 8(4), pp 1189–1228.

Tchamyou, V. S., (2019a). “Education, Lifelong learning, Inequality and Financial access: Evidence from African countries”. Contemporary Social Science. DOI: 10.1080/21582041.2018.1433314.

Tchamyou, V. S., (2019b).“The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality”. Journal of African Business, 20(3), pp. 317-338.

Tchamyou, V. S., & Asongu, S. A., (2017). “Information Sharing and Financial Sector Development in Africa”, Journal of African Business, 18(1), pp. 24-49.

Tchamyou, V. S., Erreygers, G., & Cassimon, D., (2019). “Inequality, ICT and Financial Access in Africa”, Technological Forecasting and Social Change, 139(February), pp.169- 184.

Tumwebaze, H. K & Ijjo A. I., (2015). “Regional Economic Integration and Economic Growth in the COMESA Region, 1980–2010”, African Development Review, 27(1), pp. 67-77.

Umutlu, M., Akdeniz, L., & Altag-Salih, A. (2010). “The degree of financial liberalisation and aggregated stock-return volatility in emerging markets”, Journal of Banking and Finance, 34(3), 509-521.

Wakeman-Linn, J. & Wagh, S., (2008, March). “Regional Financial Integration: Its Potential Contribution to Financial Sector Growth and Development in Sub-Saharan Africa”, Seminar on African Finance for the 21st Century at IMF Institute in Tunis, Tunis.

Welch, K.H., & Wacziarg, R., (2008), “Trade Liberalization Growth: New Evidence”, World Bank Economic Review, 22(2), pp.187-231.

Westerlund, J., & Urbain, J-P., (2013a). “On the estimation and inference in factor-augmented panel regressions with correlated loadings”, Economic Letters, 119(3), pp. 247-250.

Westerlund, J., & Urbain, J-P., (2013b). “On the implementation and use of factor-augmented regressions in panel data”, Journal of Asian Economics, 28, pp. 3-11.

Westerlund, J., & Urbain, J-P., (2012). “Cross-sectional averages versus principal components”, Maastricht University, RM/11/053, Maastricht.

World Bank (2015). “World Development Indicators’, World Bank Publications http://www.gopa.de/fr/news/world-bank-release-world-development-indicators-2015 (Accessed: 15/11/2015).

Yartey, C. A., & Adjasi, C. K., (2007). “Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges”, IMF Working Paper No. 07/209, Washington.

Yu, I-W., Fung, K-P., & Tam, C-S. (2010). “Assessing the financial market integration in Asia equity markets”, Journal of Banking and Finance, 34(12), 2874-2885.

Zhang, H., Kou, G., & Peng, Y., (2019). “Soft consensus cost models for group decision making and economic interpretations”, European Journal of Operational Research, 277(3), pp. 964-980.