AGDI currently has about 300 publications.
2013 |
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781. | Asongu, Simplice A Mobile banking and mobile phone penetration: which is more pro-poor in Africa? 2013. Abstract | Links | BibTeX | Tags: Banking; Mobile Phones; Shadow Economy; Financial Development; Africa @workingpaper{Asongu2013bh, title = {Mobile banking and mobile phone penetration: which is more pro-poor in Africa?}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/033}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Mobile-and-the-poor.pdf}, year = {2013}, date = {2013-09-01}, abstract = {The contribution of this paper to complement theoretical and qualitative mobile penetration literature with empirical evidence is twofold: firstly, we assess the incomeredistributive effect of mobile phone penetration and; secondly, the instrumentality of financial development dynamics in this nexus. Main findings suggest an equalizing incomeredistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher incomeequalizing effect in the latter than in the former. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed. The empirical evidence is based on 52 African countries and deviates from mainstream country-specific and microeconomic survey-based approaches.}, keywords = {Banking; Mobile Phones; Shadow Economy; Financial Development; Africa}, pubstate = {published}, tppubtype = {workingpaper} } The contribution of this paper to complement theoretical and qualitative mobile penetration literature with empirical evidence is twofold: firstly, we assess the incomeredistributive effect of mobile phone penetration and; secondly, the instrumentality of financial development dynamics in this nexus. Main findings suggest an equalizing incomeredistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher incomeequalizing effect in the latter than in the former. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed. The empirical evidence is based on 52 African countries and deviates from mainstream country-specific and microeconomic survey-based approaches. |
782. | Asongu, Simplice A Determinants of Health Professionals’ Migration in Africa: a WHO based Assessment 2013. Abstract | Links | BibTeX | Tags: Welfare; Health; Human Capital; Migration; Africa @workingpaper{Asongu2013bi, title = {Determinants of Health Professionals’ Migration in Africa: a WHO based Assessment}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/034}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/WHO-determinants-of-health-professional-migration.pdf}, year = {2013}, date = {2013-09-01}, abstract = {Purpose – How do economic prosperity, health expenditure, savings, price-stability, demographic change, democracy, corruption-control, press-freedom, government effectiveness, human development, foreign-aid, physical security, trade openness and financial liberalization play-out in the fight against health-worker crisis when existing emigration levels matter? Despite the acute concern of health-worker crisis in Africa owing to emigration, lack of relevant data has made the subject matter empirically void over the last decades. Design/methodology/approach – A quantile regression approach is used to assess the determinants of health-worker emigration throughout the conditional distributions of healthworker emigration. This provides an assessment of the determinants when existing emigrations levels matter. Findings – Findings provide a broad range of tools for the fight against health-worker braindrain. As a policy implication, blanket emigration-control policies are unlikely to succeed equally across countries with different levels of emigration. Thus to be effective, immigration policies should be contingent on the prevailing levels of the crisis and tailored differently across countries with the best and worst records on fighting health worker emigration. Originality/value – This paper has examined the theoretical postulations of a WHO report on determinants of health-worker migration.}, keywords = {Welfare; Health; Human Capital; Migration; Africa}, pubstate = {published}, tppubtype = {workingpaper} } Purpose – How do economic prosperity, health expenditure, savings, price-stability, demographic change, democracy, corruption-control, press-freedom, government effectiveness, human development, foreign-aid, physical security, trade openness and financial liberalization play-out in the fight against health-worker crisis when existing emigration levels matter? Despite the acute concern of health-worker crisis in Africa owing to emigration, lack of relevant data has made the subject matter empirically void over the last decades. Design/methodology/approach – A quantile regression approach is used to assess the determinants of health-worker emigration throughout the conditional distributions of healthworker emigration. This provides an assessment of the determinants when existing emigrations levels matter. Findings – Findings provide a broad range of tools for the fight against health-worker braindrain. As a policy implication, blanket emigration-control policies are unlikely to succeed equally across countries with different levels of emigration. Thus to be effective, immigration policies should be contingent on the prevailing levels of the crisis and tailored differently across countries with the best and worst records on fighting health worker emigration. Originality/value – This paper has examined the theoretical postulations of a WHO report on determinants of health-worker migration. |
783. | Asongu, Simplice A Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters 2013. Abstract | Links | BibTeX | Tags: Contagion, Financial Crisis, Globalization @workingpaper{Asongu2013bj, title = {Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/035}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalisation-and-financial-market-contagion.pdf}, year = {2013}, date = {2013-09-01}, abstract = {With financial globalization, investors can gain from diversification if returns from financial markets are stable and not correlated. However with volatility spillovers, increase in crossmarket correlations exist as a real-effect and are not taken into account for asset allocation and portfolio composition. This chapter assesses financial contagion from two recent trends in the world economy: the global financial crisis and the 2011 Japanese natural disasters (tsunami, earthquake and nuclear crises).}, keywords = {Contagion, Financial Crisis, Globalization}, pubstate = {published}, tppubtype = {workingpaper} } With financial globalization, investors can gain from diversification if returns from financial markets are stable and not correlated. However with volatility spillovers, increase in crossmarket correlations exist as a real-effect and are not taken into account for asset allocation and portfolio composition. This chapter assesses financial contagion from two recent trends in the world economy: the global financial crisis and the 2011 Japanese natural disasters (tsunami, earthquake and nuclear crises). |
784. | Asongu, Simplice A New financial development indicators: with a critical contribution to inequality empirics 2013. Abstract | Links | BibTeX | Tags: Financial Development; Shadow Economy; Poverty; Inequality; Africa @workingpaper{Asongu2013bk, title = {New financial development indicators: with a critical contribution to inequality empirics}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/036}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/New-financial-indicators-and-inequality-empirics.pdf}, year = {2013}, date = {2013-09-01}, abstract = {The employment of financial development indicators without due consideration to country/regional specific financial development realities remains an issue of substantial policy relevance. Financial depth in the perspective of money supply is not equal to liquid liabilities in every development context. This paper introduces complementary indicators to the existing Financial Development and Structure Database (FDSD). Dynamic panel system GMM estimations are applied. Different specifications, non-overlapping intervals and control variables are used to check the consistency of estimated coefficients. Our results suggest that from an absolute standpoint (GDP base measures), all financial sectors are pro-poor. However, three interesting findings are drawn from measures of sector importance. (1) The expansion of the formal financial sector to the detriment of other financial sectors has a disequalizing income effect. (2) Growth of informal and semi-formal financial sectors at the expense of the formal financial sector has an income equalizing effect. (3) The positive income redistributive effect of semi-formal finance in financial sector competition is higher than the corresponding impact of informal finance. It unites two streams of research by contributing at the same time to the macroeconomic literature on measuring financial development and responding to the growing field of economic development by means of informal financial sector promotion and microfinance. The paper suggests a practicable way to disentangle the effects of the various financial sectors on economic development. The equation of financial depth in the perspective of money supply to liquid liabilities has put on the margin the burgeoning informal financial sector in developing countries. The phenomenon of mobile banking is such an example.}, keywords = {Financial Development; Shadow Economy; Poverty; Inequality; Africa}, pubstate = {published}, tppubtype = {workingpaper} } The employment of financial development indicators without due consideration to country/regional specific financial development realities remains an issue of substantial policy relevance. Financial depth in the perspective of money supply is not equal to liquid liabilities in every development context. This paper introduces complementary indicators to the existing Financial Development and Structure Database (FDSD). Dynamic panel system GMM estimations are applied. Different specifications, non-overlapping intervals and control variables are used to check the consistency of estimated coefficients. Our results suggest that from an absolute standpoint (GDP base measures), all financial sectors are pro-poor. However, three interesting findings are drawn from measures of sector importance. (1) The expansion of the formal financial sector to the detriment of other financial sectors has a disequalizing income effect. (2) Growth of informal and semi-formal financial sectors at the expense of the formal financial sector has an income equalizing effect. (3) The positive income redistributive effect of semi-formal finance in financial sector competition is higher than the corresponding impact of informal finance. It unites two streams of research by contributing at the same time to the macroeconomic literature on measuring financial development and responding to the growing field of economic development by means of informal financial sector promotion and microfinance. The paper suggests a practicable way to disentangle the effects of the various financial sectors on economic development. The equation of financial depth in the perspective of money supply to liquid liabilities has put on the margin the burgeoning informal financial sector in developing countries. The phenomenon of mobile banking is such an example. |
785. | Asongu, Mohamed Jellal Simplice A Economics Bulletin, 33 (3), pp. 2191-2201, 2013. Abstract | Links | BibTeX | Tags: Foreign Aid; Political Economy; Development; Africa @article{Asongu_748, author = {Mohamed Jellal Simplice A. Asongu}, url = {http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P204.pdf}, year = {2013}, date = {2013-08-28}, journal = {Economics Bulletin}, volume = {33}, number = {3}, pages = {2191-2201}, abstract = {The debate by Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) on ‘the effect of foreign aid on corruption’ in its current state has the shortcoming of modeling corruption as a direct effect of development assistance. This note extends the debate by assessing the channels of foreign aid to corruption in 53 African countries for the period 1996-2010. Two main findings are established to unite the two streams of the debate. (1) Foreign aid channeled through government’s consumption expenditure increases corruption. (2) Development assistance channeled via private investment and tax effort decreases corruption. It follows that foreign aid that is targeted towards reducing corruption should be channeled via private investment and tax effort, not through government expenditure. Our results integrate an indirect component and reconcile the debate by showing that, the effect could either be positive or negative depending on the transmission channel.}, keywords = {Foreign Aid; Political Economy; Development; Africa}, pubstate = {published}, tppubtype = {article} } The debate by Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) on ‘the effect of foreign aid on corruption’ in its current state has the shortcoming of modeling corruption as a direct effect of development assistance. This note extends the debate by assessing the channels of foreign aid to corruption in 53 African countries for the period 1996-2010. Two main findings are established to unite the two streams of the debate. (1) Foreign aid channeled through government’s consumption expenditure increases corruption. (2) Development assistance channeled via private investment and tax effort decreases corruption. It follows that foreign aid that is targeted towards reducing corruption should be channeled via private investment and tax effort, not through government expenditure. Our results integrate an indirect component and reconcile the debate by showing that, the effect could either be positive or negative depending on the transmission channel. |
786. | Asongu, Simplice A Journal Article The African Finance Journal, 15 (2), pp. 44-66, 2013. Abstract | BibTeX | Tags: Finance; Investment; Poverty; Inequality; Africa @article{Asongu_749, author = {Simplice A Asongu}, year = {2013}, date = {2013-08-14}, journal = {The African Finance Journal}, volume = {15}, number = {2}, pages = {44-66}, abstract = {This paper examines how domestic, foreign, private and public investments affect income-inequality through financial intermediary dynamics. With the exception of financial allocation efficiency, financial channels of depth and activity are good for the poor as they diminish estimated household income-inequality. Financial size does not have a significant income-redistributive effect. Financial efficiency has a disequalizing effect, implying policies designed to improve the allocation of mobilized funds only benefit the rich to the detriment of the poor. The use of financial and investment dimensions previously missing in the literature provide new insights into the finance-inequality nexus. Policy implications are discussed.}, keywords = {Finance; Investment; Poverty; Inequality; Africa}, pubstate = {published}, tppubtype = {article} } This paper examines how domestic, foreign, private and public investments affect income-inequality through financial intermediary dynamics. With the exception of financial allocation efficiency, financial channels of depth and activity are good for the poor as they diminish estimated household income-inequality. Financial size does not have a significant income-redistributive effect. Financial efficiency has a disequalizing effect, implying policies designed to improve the allocation of mobilized funds only benefit the rich to the detriment of the poor. The use of financial and investment dimensions previously missing in the literature provide new insights into the finance-inequality nexus. Policy implications are discussed. |
787. | Asongu, Simplice A On the effectiveness of foreign aid in institutional quality 2013. Abstract | Links | BibTeX | Tags: Foreign Aid; Political Economy; Development; Africa @workingpaper{Asongu2013bl, title = {On the effectiveness of foreign aid in institutional quality}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/017}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/On-the-effectiveness-of-foreign-aid-in-institutional-quality.pdf}, year = {2013}, date = {2013-08-01}, abstract = {We extend the Okada & Samreth (2012, EL) and Asongu (2012, EB) debate on ‘the effect of foreign aid on corruption’ by: not partially negating the former’s methodological underpinning (as in the latter’s approach) with a unifying empirical framework and; broadening the horizon of inquiry from corruption to eight institutional quality dynamics (rule of law, regulation quality, government effectiveness, democracy, corruption, voice & accountability, control of corruption and political stability). Core to this extension is a hypothetical contingency of the ‘institutional perils of foreign aid’ on existing institutional quality such that, the institutional downside of development assistance maybe questionable when greater domestic institutional development has taken place. Based on the hypothesis of institutional thresholds for foreign aid effectiveness, the perilous character of development assistance to institutional quality is broadly confirmed in 53 African countries for the period 1996-2010.}, keywords = {Foreign Aid; Political Economy; Development; Africa}, pubstate = {published}, tppubtype = {workingpaper} } We extend the Okada & Samreth (2012, EL) and Asongu (2012, EB) debate on ‘the effect of foreign aid on corruption’ by: not partially negating the former’s methodological underpinning (as in the latter’s approach) with a unifying empirical framework and; broadening the horizon of inquiry from corruption to eight institutional quality dynamics (rule of law, regulation quality, government effectiveness, democracy, corruption, voice & accountability, control of corruption and political stability). Core to this extension is a hypothetical contingency of the ‘institutional perils of foreign aid’ on existing institutional quality such that, the institutional downside of development assistance maybe questionable when greater domestic institutional development has taken place. Based on the hypothesis of institutional thresholds for foreign aid effectiveness, the perilous character of development assistance to institutional quality is broadly confirmed in 53 African countries for the period 1996-2010. |
788. | Asongu, Simplice A Consult your gods: the questionable economics of development assistance in Africa 2013. Abstract | Links | BibTeX | Tags: Foreign Aid; Political Economy; Development; Africa @workingpaper{Asongu2013bm, title = {Consult your gods: the questionable economics of development assistance in Africa}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/002}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Consult-your-gods.-The-questionable-economics-of-development-assistance-in-Africa.pdf}, year = {2013}, date = {2013-07-01}, abstract = {This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed.}, keywords = {Foreign Aid; Political Economy; Development; Africa}, pubstate = {published}, tppubtype = {workingpaper} } This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed. |
789. | Asongu, Simplice A Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization 2013. Abstract | Links | BibTeX | Tags: Econometric modeling; Big push; Capital flight; Debt relief; Africa @workingpaper{Asongu2013bn, title = {Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization}, author = {Simplice A Asongu}, editor = {African 2013 Governance and Development Institute WP/13/006}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-African-Capital-Flight.-Empirics-on-Benchmarking-Policy-Harmonization.pdf}, year = {2013}, date = {2013-07-01}, abstract = {With earthshaking and heartbreaking trends in African capital flight provided by a new database, this paper complements existing literature by answering some key policy questions on the feasibility of and timeframe for policy harmonization in the battle against the economic scourge. The goal of the paper is to study beta-convergence of capital flight across a set of 37 African countries in the period 1980-2010 and to discuss the policy implications. Three main findings are established. (1) African countries with low capital flight rates are catching-up their counterparts with higher rates, implying the feasibility of policy harmonization towards fighting capital flight. (2) Petroleum-exporting and conflict-affected countries significantly play out in absolute and conditional convergences respectively. (3) Regardless of fundamental characteristics, a genuine timeframe for harmonizing policies is within a horizon of 6 to 13 years. In other words, full (100%) convergence within the specified horizon is an indication that policies and regulations can be enforced without distinction of nationality or locality.}, keywords = {Econometric modeling; Big push; Capital flight; Debt relief; Africa}, pubstate = {published}, tppubtype = {workingpaper} } With earthshaking and heartbreaking trends in African capital flight provided by a new database, this paper complements existing literature by answering some key policy questions on the feasibility of and timeframe for policy harmonization in the battle against the economic scourge. The goal of the paper is to study beta-convergence of capital flight across a set of 37 African countries in the period 1980-2010 and to discuss the policy implications. Three main findings are established. (1) African countries with low capital flight rates are catching-up their counterparts with higher rates, implying the feasibility of policy harmonization towards fighting capital flight. (2) Petroleum-exporting and conflict-affected countries significantly play out in absolute and conditional convergences respectively. (3) Regardless of fundamental characteristics, a genuine timeframe for harmonizing policies is within a horizon of 6 to 13 years. In other words, full (100%) convergence within the specified horizon is an indication that policies and regulations can be enforced without distinction of nationality or locality. |
790. | Asongu, Gilbert Aminkeng Simplice A A A The Economic Consequences of China-Africa Relations: Debunking Myths in the Debate 2013. Abstract | Links | BibTeX | Tags: Foreign direct investment; direct trade impacts; China; Africa @workingpaper{Asongu2013bo, title = {The Economic Consequences of China-Africa Relations: Debunking Myths in the Debate}, author = {Gilbert Aminkeng A A Simplice A. Asongu}, editor = {African 2013 Governance and Development Institute WP/13/020}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Economic-Consequences-of-China-Africa-relations.-Debunking-myths-in-the-debate.pdf}, year = {2013}, date = {2013-07-01}, abstract = {This study dissects with great acuteness some of the big questions on China-Africa relations in order to debunk burgeoning myths surrounding the nexus. It reviews a wealth of recent literature and presents the debate in three schools of thought. No substantial empirical evidence is found to back-up sinister prophesies of coming catastrophe from critics of the direction of China-Africa relations. In the mean, the relationship from an economic standpoint is promising and encouraging but more needs to be done regarding multilateral relations, improvement of institutions and sustainability of resources management. A number of positive signs suggest that China is heading toward the direction which would provide openings for a multipolar dialogue. While benefiting in the short-run, African governments have the capacity to tailor this relationship and address some socio-economic matters arising that may negatively affect the nexus in the long-term. Policy implications are discussed.}, keywords = {Foreign direct investment; direct trade impacts; China; Africa}, pubstate = {published}, tppubtype = {workingpaper} } This study dissects with great acuteness some of the big questions on China-Africa relations in order to debunk burgeoning myths surrounding the nexus. It reviews a wealth of recent literature and presents the debate in three schools of thought. No substantial empirical evidence is found to back-up sinister prophesies of coming catastrophe from critics of the direction of China-Africa relations. In the mean, the relationship from an economic standpoint is promising and encouraging but more needs to be done regarding multilateral relations, improvement of institutions and sustainability of resources management. A number of positive signs suggest that China is heading toward the direction which would provide openings for a multipolar dialogue. While benefiting in the short-run, African governments have the capacity to tailor this relationship and address some socio-economic matters arising that may negatively affect the nexus in the long-term. Policy implications are discussed. |