@workingpaper{Asongu2012b,
title = {African Financial Development Dynamics: Big Time Convergence},
author = {Simplice A. Asongu },
editor = { 2012 African Governance and Development Institute WP/12/003
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/African-financial-development-dynamics.-Big-time-convergence.pdf},
year = {2012},
date = {2012-01-01},
abstract = {Purpose - Assessment of African financial development dynamic convergences in money,
credit, efficiency and size.
Design/Methodology - The empirical evidence is premised on 11 homogenous panels based on
regions (Sub-Saharan and North Africa), income-levels (low, middle, lower-middle and uppermiddle),
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 - Findings suggest that countries with small-sized financial intermediary depth,
efficiency, activity and size are catching-up 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.
Practical implications - The presence of strong links among African banking sectors may
present little opportunity for portfolio diversification. The convergence patterns show positive
steps towards regional integration. As a policy implication, African governments should not
relent in structural and institutional reforms.
Originality/value - It is the first critical assessment of convergence in financial intermediary
development dynamics in the African continent.},
keywords = {Convergence; Policy Coordination; Banking; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012b,
title = {African Stock Market Performance Dynamics: A Multidimensional Convergence Assessment},
author = {Simplice A. Asongu },
editor = { 2012 African Governance and Development Institute WP/12/004},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Convergence-in-African-Stock-Market-Performance-Dynamics.pdf},
year = {2012},
date = {2012-01-01},
abstract = {This paper dissects with great acuteness, the issues of convergence in financial
performance dynamics in the African continent through the lenses of stock market capitalization,
value traded, turnover and number of listed companies. 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 civillaw)
and religious dominations (Christianity and Islam). Findings provide partial support for the
existence of absolute convergence in some dynamics. Only sub-Saharan Africa reveals
conditional convergence in relation to per capita number of listed companies. The speed of
convergence for the most part is between 12% and 28% per annum. As a policy implication,
countries should work towards adopting common institutional and structural characteristics that
favor stock market development.},
keywords = {Convergence; Stock markets; Panel; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012b,
title = {Are Proposed African Monetary Unions Optimal Currency Areas? Real and Monetary Policy Convergence Analysis},
author = {Simplice A. Asongu },
editor = {2012 African Governance and Development Institute WP/12/005},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Are-Proposed-African-Monetary-Unions-Optimal-Currency-Areas.-Real-and-Monetary-Policy-Convergence-Analysis.pdf},
year = {2012},
date = {2012-01-01},
abstract = {Purpose – A spectre is hunting embryonic African monetary zones: the EMU crisis. This
paper assesses real and monetary 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 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 while real sector policy targets
economic performance in terms of GDP growth at macro and micro levels.
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 crosscountry
differences could also be responsible for the deficiency in convergence within the
potential monetary zones.
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 crosscountry
differences in structural and institutional characteristics that hamper the effectiveness
of convergence in monetary and real policies.
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{Asongu2012b,
title = {Financial determinants of consumer price inflation. What do dynamics in money, credit, efficiency and size tell us?},
author = {Simplice A. Asongu },
editor = { 2012 African Governance and Development Institute WP/12/019},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-determinants-of-consumer-price-inflation.pdf},
year = {2012},
date = {2012-01-01},
abstract = {Purpose – The purpose of this paper is to examine the effects of financial dynamic policy
options in money, credit, efficiency and size on consumer prices. Soaring food prices have
marked the geopolitical landscape of developing countries in the past few years.
Design/methodology/approach – The estimation approach used is a Two-Stage-Least Squares
Instrumental Variable technique. Instruments include: legal-origins; income-levels and religiousdominations.
The first-step consists of justifying the choice of the estimation approach with a
Hausman-test for endogeneity. In the second-step, we verify that the instrumental variables are
exogenous to the endogenous components of explaining variables(financial dynamic channels)
conditional on other covariates(control variables). In the third-step, the validity of the
instruments is examined with the Sargan overidentifying restrictions test. Robustness checks are
ensured by: (1) use of alternative indicators of each financial dynamic; (2) estimation with robust
Heteroscedasticity and Autocorrelation Consistent (HAC) standard errors; and (3) adoption of
two interchangeable sets of instruments.
Findings – Findings broadly reveal the following: (1) money(depth) and credit(activity) which
are in absolute measures have positive elasticities of inflation; while (2) financial efficiency and
size in relative measures have negative elasticities of inflation.
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, sustained
campaigns 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{Asongu2012b,
title = {Politics and Consumer Prices in Africa},
author = {Simplice A. Asongu },
editor = {2012 African Governance and Development Institute WP/12/032},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Politics-and-Consumer-Prices-in-Africa.pdf},
year = {2012},
date = {2012-01-01},
abstract = {The motivations of the Arab Spring that have marked the history of humanity over the
last few months have left political economists, researchers, governments and international
policymakers pondering over how the quality of political institutions affect consumer welfare
in terms of commodity prices. This paper investigates the effects of political establishments
on consumer prices in the African continent. Findings suggest that in comparison with
authoritarian regimes, democracies better provide for institutions that keep inflationary
pressures on commodity prices in check. As a policy implication, improving the quality of
democratic institutions will ameliorate consumer welfare through lower inflation rates. Such
government quality institutional determinants include, among others: voice and
accountability, rule of law, regulation quality, control of corruption and press freedom.},
keywords = {Consumer prices; Political institutions; Welfare; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012b,
title = {The Role of Human Development on Deforestation in Africa: A Modelling-Based Approach},
author = {Simplice A. Asongu, Brian A. Jingwa},
editor = {2012 African Governance and Development Institute WP/12/036
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-role-of-human-development-on-deforestation.-A-modelling-based-approach.pdf},
year = {2012},
date = {2012-01-01},
abstract = {The rate of deforestation in Africa is of paramount concern not only to the future of Africa,
but also to the world. This study uses country-level data to model changes in forest area over
an 18 year period (1990-2007) in 35 African countries and investigates the role played by
important development indicators of human development. The results reveal that the net loss
of forests was 0.19% every year between 1990 and 2007. This implies a total of 3.42% of
forest was lost in the 18 year period. This is more in line with estimates obtained by the Food
and Agricultural Organization (0.56% between1990-2000 and 0.49% between 2000-2010).
Human development which involves life expectancy, education and income is found to have
a positive effect on forest growth and conservation, while cutting down trees for wood fuel is
a significant cause of deforestation. Using generalized linear mixed models and generalised
estimating equations, we were able to calculate expected estimates of forest area for 2010,
2020 and 2030 under the assumption that nothing is done to change observed trends. In many
countries, progress has been made in reforestation, forest protection and conservation.
However, if indiscriminate cutting down of trees is not checked, many countries will lose
most or all of their forests by 2030.},
keywords = {Deforestation; Environment; Human development index; Agriculture; Data modelling; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@article{Asongu,2012,
title = {The role of human development on deforestation in Africa: a modelling-based approach},
author = {Simplice A. Asongu, Brian A. Jingwa },
url = {http://dx.doi.org/10.1504/IJGE.2012.051493},
doi = {10.1504/IJGE.2012.051493},
year = {2011},
date = {2011-12-13},
journal = {International Journal of Green Economics},
volume = {6},
number = {4},
pages = {317-330 },
abstract = {The rate of deforestation in Africa is of paramount concern not only to the future of Africa, but also to the world. This study uses country-level data to model changes in forest area over an 18 year period (1990–2007) in 35 African countries and investigates the role played by important development indicators of human development. The results reveal that the net loss of forests was 0.19% every year between 1990 and 2007. Human development, which involves life expectancy, education and income, is found to have a positive effect on forest growth and conservation, while logging trees for wood fuel is a significant cause of deforestation. Using generalised linear mixed models and generalised estimating equations, it was possible to calculate expected estimates of forest area for 2010, 2020 and 2030 under the assumption that nothing is done to change observed trends.},
keywords = {Africa, agriculture, data modelling, deforestation, environment, human development index},
pubstate = {published},
tppubtype = {article}
}

@workingpaper{Asongu2011b,
title = {Finance and Inequality: Exploring Pro-Poor Investment Channels in Africa},
author = {Simplice A. Asongu },
editor = {2011 African Governance and Development Institute WP/11/016},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Finance-and-Inequality.-Exploring-Pro-poor-Investment-Channels-in-Africa.pdf},
year = {2011},
date = {2011-12-01},
abstract = {Hitherto very few studies on the inequality-finance(investment) nexus have focused on
the African continent owing to lack of relevant data. This paper integrates previously missing
investment and financial components in the assessment of how finance affects pro-poor
investment channels. Findings reveal, but for the case of foreign investment, financial
development dynamics of depth, efficiency, activity and size have an equalizing effect on
income distribution through private, public and domestic investment channels. As a policy
implication investment-targeted financial reforms that aim to curb poverty should take account of
the disequalizing income-effect of foreign investment in undeveloped countries.
},
keywords = {Finance; Investment; Poverty; Inequality; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011b,
title = {Population Growth and Forest Sustainability in Africa},
author = {Simplice A. Asongu, Brian A. Jingwa
},
editor = {2011 African Governance and Development Institute WP/11/017},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Population-growth-and-Forest-Sustainability.Evidence-from-Africa.pdf},
year = {2011},
date = {2011-12-01},
abstract = {Recent distressing trends in climate change, population explosion and deforestation
inspired this paper, which completes existing literature by providing empirical justification to
hypothetical initiatives on the impact of population growth on forest sustainability in Africa.
Using three instruments of forest exploitation, the study shows how rural, agricultural and
national population growths affect forest-area and agricultural-land. In this particular study the
findings indicate that instruments of forest exploitation do not explain changes in forest-area and
agricultural-land beyond population growth mechanisms. Hence, population growth channels are
a driving force by which forest-area and agricultural-land are depleted and expanded
respectively. As a policy implication in the process of deforestation, a balanced approach is
needed to take account of the interests of both; a green economy promoting sustainable
development and the growing population needs.
},
keywords = {Demography; Forestry; Agriculture; Environment; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011b,
title = {Law, Democracy and the Quality of Government in Africa},
author = {Simplice A. Asongu },
editor = { 2011 African Governance and Development Institute WP/11/018
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Law-democracy-and-the-quality-of-government-in-Africa.pdf},
year = {2011},
date = {2011-12-01},
abstract = {This paper examines the big questions of African comparative politics. It assesses the
interaction of three crucial components in the development of the continent: law, democracy and
quality of government. Political regimes of democracy, polity and autocracy are instrumented
with income-levels, legal-origins, religious-dominations and press-freedom levels to account for
government quality dynamics of corruption-control, government-effectiveness, voice and
accountability, political-stability, regulation quality and rule of law. Findings indicate democracy
has an edge over autocracy while the later and polity overlap. A democracy that takes into
account only the voice of the majority is better in government quality than autocracy, while a
democracy that takes into account the voice of the minority (polity) is worse in government
quality than autocracy. As a policy implication, democracy once initiated should be accelerated
to edge the appeals of authoritarian regimes and reap the benefits of time and level hypotheses.
},
keywords = {Law; Politics; Democracy; Government Policy; Development},
pubstate = {published},
tppubtype = {workingpaper}
}