@workingpaper{Asongu2012bb,
title = {Fighting corruption when existing corruption-control levels count: what do wealth-effects tell us in Africa?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/014},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-corruption-when-existing-corruption-levels-count.-What-do-wealth-effects-tell-us-in-Africa.pdf},
year = {2012},
date = {2012-10-01},
abstract = {Why are some nations more effective at battling corruption than others? Are there different
determinants in the fight against corruption across developing nations? How do wealth effects
play-out when existing corruption-control levels matter in the corruption battle? To investigate
these concerns we examine the determinants of corruption-control throughout the conditional
distribution of the fight against corruption. The following broad findings are established. (1)
Population growth is a (an) tool (impediment) in (to) the fight against corruption in Low
(Middle) income countries. (2) Democracy increases (decreases) corruption-control in Middle
(Low) income countries. As a policy implication, blanket corruption-control strategies are
unlikely to succeed equally across countries with different income-levels and political wills in
the fight against corruption. Thus to be effective, corruption policies should be contingent on the
prevailing levels of corruption-control and income-bracket.},
keywords = {Africa, Corruption, Democracy, Government quality, Quantile regression},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bc,
title = {Are Proposed African Monetary Unions Optimal Currency Areas? Real, Monetary and Fiscal Policy Convergence Analysis},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/006},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Are-Proposed-African-Monetary-Unions-OCA.-Real-Monetary-and-Fiscal-Policy-Convergence-Analysis.pdf},
year = {2012},
date = {2012-09-01},
abstract = {Purpose – A spectre is hunting embryonic African monetary zones: the EMU crisis. This paper
assesses real, monetary and fiscal policy convergence within the proposed WAM and EAM
zones. The introduction of common currencies in West and East Africa is facing stiff challenges
in the timing of monetary convergence, the imperative of central bankers to apply common
modeling and forecasting methods of monetary policy transmission, as well as the requirements
of common structural and institutional characteristics among candidate states.
Design/methodology/approach – In the analysis: monetary policy targets inflation and financial
dynamics of depth, efficiency, activity and size; real sector policy targets economic performance
in terms of GDP growth at macro and micro levels; while, fiscal policy targets debt-to-GDP and
deficit-to-GDP ratios. A dynamic panel GMM estimation with data from different nonoverlapping
intervals is employed. The implied rate of convergence and the time required to
achieve full (100%) convergence are then computed from the estimations.
Findings – Findings suggest overwhelming lack of convergence: (1) initial conditions for
financial development are different across countries; (2) fundamental characteristics as common
monetary policy initiatives and IMF backed financial reform programs are implemented
differently across countries; (3) there is remarkable evidence of cross-country variations in
structural characteristics of macroeconomic performance; (4) institutional cross-country
differences could also be responsible for the deficiency in convergence within the potential
monetary zones; (5) absence of fiscal policy convergence and no potential for eliminating
idiosyncratic fiscal shocks due to business cycle incoherence.
Practical implications – As a policy implication, heterogeneous structural and institutional
characteristics across countries are giving rise to different levels and patterns of financial
intermediary development. Thus, member states should work towards harmonizing cross-country
differences in structural and institutional characteristics that hamper the effectiveness of
convergence in monetary, real and fiscal policies. This could be done by stringently monitoring
the implementation of existing common initiatives and/or the adoption of new reforms programs.
Originality/value – It is one of the few attempts to investigate the issue of convergence within
the proposed WAM and EAM unions.},
keywords = {Currency Area; Convergence; Policy Coordination; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bd,
title = {Fighting consumer price inflation in Africa. What do dynamics in money, credit, efficiency and size tell us?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/011},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-consumer-price-inflation-in-Africa.-What-do-dynamics-in-money-credit-efficiency-and-size-tell-us.pdf},
year = {2012},
date = {2012-09-01},
abstract = {Purpose – The purpose of this paper is to examine the effects of policy options in financial
dynamics (of money, credit, efficiency and size) on consumer prices. Soaring food prices have
marked the geopolitical landscape of African countries in the past decade.
Design/methodology/approach – We limit our sample to a panel of African countries for which
inflation is non-stationary. VAR models from both error correction and Granger causality
perspectives are applied. Analyses of dynamic shocks and responses are also covered. Six
batteries of robustness checks are applied to ensure consistency in the results.
Findings – (1) There are significant long-run equilibriums between inflation and each financial
dynamic. (2) When there is a disequilibrium, while only financial depth and financial size could
be significantly used to exert deflationary pressures, inflation is significant in adjusting all
financial dynamics. In other words, financial depth and financial size are more significant
instruments in fighting inflation than financial efficiency and activity. (3) The financial
intermediary dynamic of size appears to be more instrumental in exerting a deflationary tendency
than financial intermediary depth. (4) The deflationary tendency from money supply is double
that based on liquid liabilities.
Practical implications – Monetary policy aimed at fighting inflation only based on bank
deposits may not be very effective until other informal and semi-formal financial sectors are
taken into account. It could be inferred that, tight monetary policy targeting the ability of banks
to grant credit (in relation to central bank credits) is more effective in tackling consumer price
inflation than that, targeting the ability of banks to receive deposits. In the same vein, adjusting
the lending rate could be more effective than adjusting the deposit rate. The insignificance of
financial allocation efficiency and financial activity as policy tools in the battle against inflation
could be explained by the (well documented) surplus liquidity issues experienced by the African
banking sector.
Social implications – This paper helps in providing monetary policy options in the fight against
soaring consumer prices. By keeping inflationary pressures on food prices in check, sustainedcampaigns involving strikes, demonstrations, marches, rallies and political crises that seriously
disrupt economic performance could be mitigated.
Originality/value – As far as we have perused, there is yet no study that assesses monetary
policy options that could be relevant in addressing the dramatic surge in the price of consumer
commodities.},
keywords = {Banks; Inflation; Development; Panel; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012be,
title = {How has Mobile Phone Penetration Stimulated Financial Development in Africa?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/026},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/How-has-mobile-phone-penetration-stimulated-financial-development-in-Africa.pdf},
year = {2012},
date = {2012-09-01},
abstract = {In the first macroeconomic empirical assessment of the relationship between mobile
phones and finance, this paper examines the correlations between mobile phone penetration
and financial development using two conflicting definitions of the financial system in the
financial development literature. With the traditional IFS (2008) definition, mobile phone
penetration has a negative correlation with traditional financial intermediary dynamics of
depth, activity and size. However, when a previously missing informal-financial sector
component is integrated into the definition, mobile phone penetration has a positive
correlation with informal financial development. Three implications result: there is a growing
role of informal finance; mobile phone penetration may not be positively assessed at a
macroeconomic level by traditional financial development indicators and; it is a wake-up call
for scholarly research on informal financial development indicators which will oriented
monetary policy.},
keywords = {Banking; Mobile Phones; Shadow Economy; Financial Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bf,
title = {How has Mobile Phone Penetration Stimulated Financial Development in Africa?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/026},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/How-has-mobile-phone-penetration-stimulated-financial-development-in-Africa.pdf},
year = {2012},
date = {2012-09-01},
abstract = {In the first macroeconomic empirical assessment of the relationship between mobile
phones and finance, this paper examines the correlations between mobile phone penetration
and financial development using two conflicting definitions of the financial system in the
financial development literature. With the traditional IFS (2008) definition, mobile phone
penetration has a negative correlation with traditional financial intermediary dynamics of
depth, activity and size. However, when a previously missing informal-financial sector
component is integrated into the definition, mobile phone penetration has a positive
correlation with informal financial development. Three implications result: there is a growing
role of informal finance; mobile phone penetration may not be positively assessed at a
macroeconomic level by traditional financial development indicators and; it is a wake-up call
for scholarly research on informal financial development indicators which will oriented
monetary policy.},
keywords = {Banking; Mobile Phones; Shadow Economy; Financial Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bg,
title = {Software piracy, inequality and the poor: evidence from Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/035},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Software-piracy-inequality-and-the-poor.pdf},
year = {2012},
date = {2012-09-01},
abstract = {Purpose – Poverty and inequality undoubtedly remain substantial challenges to economic and
human developments amid growing emphasis on IPRs (with recent advances in ICTs) and
good governance. In the first empirical study on the incidence of piracy on inequality in
Africa, we examine how a plethora of factors (IPRs laws, education & ICTs and government
quality) are instrumental in the piracy-inequality nexus.
Design/methodology/approach – Two-Stage-Least Squares estimation approaches are
applied in which piracy is instrumented with IPRs regimes (treaties), education & ICTs and
government quality dynamics.
Findings – The main finding suggests that, software piracy is good for the poor as it has a
positive income-redistributive effect; consistent with economic and cultural considerations
from recent literature. ICTs & education (dissemination of knowledge) are instrumental in this
positive redistributive effect, while good governance mitigates inequality beyond the piracy
channel.
Practical implications – As a policy implication, in the adoption IPRs, sampled countries
should take account of the role less stringent IPRs regimes play on income-redistribution
through software piracy. Collateral benefits include among others, the cheap dissemination of
knowledge through ICTs which African countries badly need in their quest to become
‘knowledge economies’. A caveat however is that, too much piracy may decrease incentives
to innovate. Hence, the need to adopt tighter IPRs regimes in tandem with increasing incomeequality.
Originality/value – It is the first empirical assessment of the incidence of piracy on
inequality in Africa: a continent with stubbornly high poverty and inequality rates.},
keywords = {Inequality; Piracy; Intellectual property rights; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bh,
title = {Financial sector competition and knowledge economy: evidence from SSA and MENA countries},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/021},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-sector-competition-and-knowledge-economy.pdf},
year = {2012},
date = {2012-08-01},
abstract = {The goal of this paper is to assess how financial sector competition plays-out in the
development of knowledge economy (KE). It contributes at the same time to the
macroeconomic literature on measuring financial development and response to the growing
field of KE by means of informal sector promotion, micro finance and mobile banking. It
suggests a practicable way to disentangle the effects of various financial sectors on different
components of KE. The variables identified under the World Bank’s four knowledge
economy index (KEI) are employed. Three hypotheses based on seven propositions are tested.
Results show: (1) the informal financial sector, a previously missing component in the
definition of the financial system by the IMF significantly affects KE dimensions; (2)
disentangling different components of the existing measurement of the financial system
improves dynamics in the KE-finance nexus and; (3) introduction of measures of sector
importance provides relevant new insights into how financial sector competition affects KE.},
keywords = {Financial development; Knowledge Economy},
pubstate = {published},
tppubtype = {workingpaper}
}