@workingpaper{Asongu2013b_26,
title = {How has politico-economic liberalization affected financial allocation efficiency? Fresh African evidence},
author = {Simplice A Asongu},
editor = {African 2013 Governance and Development Institute WP/13/012},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/How-has-politico-economic-liberalization-affected-financial-allocation-efficiency.-Fresh-African-evidence.pdf},
year = {2013},
date = {2013-01-01},
abstract = {This paper investigates how financial, trade, institutional and political liberalization
policies have affected financial efficiency in Africa. It uses updated data to appraise second
generation reforms in order to gather fresh evidence and derive more updated policy
implications. The ‘freedom to trade’ and ‘economic freedom’ indices are also employed. The
following findings are established. (1) Financial liberalization mitigates financial allocation
efficiency, with the magnitude of the de jure indicator (KAOPEN) higher than that of the de
facto measurement (FDI). (2) Exports significantly improve financial efficiency. (3)
Institutional liberalization has a positive effect on the efficiency of allocation while the effect
of political liberalization is not significant. (4) Freedom of trade decreases (improves)
financial (banking) system efficiency. (5) Economic freedom facilitates the transformation of
mobilized financial resources (deposits) into credit for economic operators. Justifications for
these nexuses are provided.},
keywords = {Liberalization policies; Capital allocation; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}