Simplice A, Asongu (2012): African Financial Development Dynamics: Big Time Convergence.
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In the first critical assessment of convergence in financial development dynamics in Africa, we find overwhelming support for integration. The empirical evidence is premised on 11 homogenous panels based on regions(Sub-Saharan and North Africa), income-levels(low, middle, lower-middle and upper-middle), legal-origins(English common-law and French civil-law) and religious dominations(Christianity and Islam). We examine convergence in financial intermediary dynamics of depth, efficiency, activity and size. Findings suggest that countries with small-sized financial intermediary depth, efficiency, activity and size are catching-up with countries with large-sized financial intermediary depth, efficiency, activity and size respectively. We also provide the speeds of convergence and time necessary to achieve a full(100%) convergence. As a policy implication African governments should not relent in structural and institutional reforms.
|Item Type:||MPRA Paper|
|Original Title:||African Financial Development Dynamics: Big Time Convergence|
|Keywords:||Convergence; Policy Coordination; Banking; Africa|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa
F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration
P - Economic Systems > P5 - Comparative Economic Systems > P52 - Comparative Studies of Particular Economies
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||19. Jan 2012 15:07|
|Last Modified:||16. Feb 2013 02:08|
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