@workingpaper{Asongu2013b,
title = {Modeling the future of knowledge economy: evidence from SSA and MENA countries},
author = {Simplice A. Asongu },
editor = { 2013 African Governance and Development Institute WP/13/015},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Modeling-the-future-of-Knowledge-Economy.-Evidence-from-SSA-and-MENA-countries.pdf},
year = {2013},
date = {2013-01-01},
abstract = {This paper projects the future of knowledge economy (KE) in SSA and MENA
countries using the four components of the World Bank’s Knowledge Economy Index (KEI):
economic incentive, education, ICTs and innovation. The empirical evidence provides the
speeds of integration as well as the time necessary to achieve full integration. Findings
broadly indicate SSA and MENA countries with low levels in KE will catch-up their
counterparts with higher levels in a horizon of 4 to 7.5 years.
},
keywords = {Knowledge economy; Principal Component Analysis; Panel data; Convergence},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2013b,
title = {New Empirics of monetary policy dynamics: evidence from the CFA franc zones},
author = {Simplice A. Asongu },
editor = {2013 African Governance and Development Institute WP/13/016
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/New-Empirics-of-monetary-policy-dynamics.-Evidence-from-the-CFA-franc-zones.pdf},
year = {2013},
date = {2013-01-01},
abstract = {Purpose – A major lesson of the EMU crisis is that serious disequilibria in a monetary union
result from arrangements not designed to be robust to a variety of shocks. With the specter of
this crisis looming substantially and scarring existing monetary zones, the present study has
complemented existing literature by analyzing the effects of monetary policy on economic
activity (output and prices) in the CEMAC and UEMOA CFA franc zones.
Design/methodology/approach – VARs within the frameworks of VECMs and Granger
causality models are used to estimate the long-run and short-run effects respectively. Impulse
response functions are further used to assess the tendencies of significant Granger causality
findings. A battery of robustness checks are also employed to ensure consistency in the
specifications and results.
Findings – Hypothesis 1: Monetary policy variables affect prices in the long-run but not in
the short-run in the CFA zones (Broadly untrue). This invalidity is more pronounced in
CEMAC (relative to all monetary policy variables) than in UEMOA (with regard to financial
dynamics of activity and size). Hypothesis 2: Monetary policy variables influence output in
the short-term but not in the long-run in the CFA zones. Firstly, the absence of co-integration
among real output and the monetary policy variables in both zones confirm the long-term
dimension of the hypothesis on the neutrality of money. The validity of its short-run
dimension is more relevant in the UEMOA zone (with the exception of overall money supply)
than in the CEMAC zone (in which only financial dynamics of ‘financial system efficiency’
and financial activity support the hypothesis).
Practical Implications – (1) Compared to the CEMAC region, the UEMOA zone’s monetary
authority has more policy instruments for offsetting output shocks but fewer instruments for
the management of short-run inflation. (2) The CEMAC region is more inclined to nontraditional
policy regimes while the UEMOA zone dances more to the tune of traditional
discretionary monetary policy arrangements. A wide range of policy implications are
discussed. Inter alia: implications for the long-run neutrality of money and business cycles;
implications for credit expansions and inflationary tendencies; implications of the findings to
the ongoing debate; country-specific implications and measures of fighting surplus liquidity.
Originality/value – By using a plethora of hitherto unemployed financial dynamics (that
broadly reflect money supply), we have provided a significant contribution to the empirics of
monetary policy. The conclusion of the analysis is a valuable contribution to the scholarly and
policy debate on how money matters as an instrument of economic activity in developing
countries and monetary unions.
},
keywords = {Monetary Policy; Banking; Inflation; Output effects; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2013b,
title = {State fragility, rent seeking and lobbying: evidence from African data},
author = {Simplice A. Asongu, Oasis Kodila-Tedika},
editor = {2013 African Governance and Development Institute WP/13/019},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/State-fragility-rent-seeking-and-lobbying.-Evidence-from-African-data.pdf},
year = {2013},
date = {2013-01-01},
abstract = {This paper assesses the determinants of state fragility in sub-Saharan Africa using
hitherto unexplored variables in the literature. The previously missing dimension of nation
building is integrated and the hypothesis of state fragility being a function of rent seeking
and/or lobbying by de facto power holders is tested. The resulting interesting finding is that,
political interference, rent seeking and lobbying increase the probability of state fragility by
mitigating the effectiveness of governance capacity. This relationship (after controlling for a
range of economic, institutional and demographic factors) is consistent with a plethora of
models and specifications. The validity of the hypothesis is confirmed in a scenario of
extreme state fragility. Moreover, the interaction between political interferences and
revolutions mitigate the probability of state fragility while the interaction between natural
resources and political interferences breeds the probability of extreme state fragility. As a
policy implication, there is a ‘sub-Saharan African specificity’ in ‘nation building’ and
prevention of conflicts. Blanket fragility oriented policies will be misplaced unless they are
contingent on the degree of fragility, since ‘fragile’ and ‘extreme fragile’ countries respond
differently to economic, institutional and demographic characteristics of state fragility.
},
keywords = {State fragility; rent seeking; lobbying; nation building; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2013b,
title = {The ‘Knowledge Economy’-finance nexus in SSA and MENA countries },
author = {Simplice A. Asongu },
editor = {2013 African Governance and Development Institute WP/13/022},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Knowledge-Economy-Finance-Nexus-in-SSA-and-MENA-countries.pdf},
year = {2013},
date = {2013-01-01},
abstract = {Purpose – This paper assesses dynamics of the knowledge economy (KE)-finance nexus
using the four variables identified under the World Bank’s knowledge economy index (KEI)
and seven financial intermediary dynamics of depth, efficiency, activity and size.
Design/methodology/approach – Principal Component Analysis is used to reduce the
dimensions of KE components before dynamic panel GMM estimation techniques are
employed to examine the nexuses.
Findings – Four main findings are established. (1) Education improves financial depth and
financial efficiency but mitigates financial size. (2) But for a thin exception (trade’s incidence
on money supply), economic incentives (credit facilities and trade) are not consistently
favorable to financial development. (3) ICT improves only financial size and has a negative
effect on other financial dynamics. (4) Proxies for innovation (journals and FDI) have a
positive effect on financial activity; journals (FDI) have (has) a negative (positive) effect on
liquid liabilities and; journals and FDI both have negative incidences on money supply and
banking system efficiency respectively.
Practical Implications – As a policy implication, the KE-finance nexus is a complex and
multidimensional relationship. Hence, blind and blanket policy formulation to achieve
positive linkages may not be successful unless policy-making strategy is contingent on the
prevailing ‘KE specific component’ trends and dynamics of financial development. Policy
makers should improve the economic incentive dimension of KE that overwhelmingly and
consistently deters financial development, owing to surplus liquidity issues.
Originality/value – As far as we have reviewed, this is the first paper to examine the KEfinance
nexus with the plethora of KE dimensions defined by the World Bank’s KEI and all
the dynamics identified by the Financial Development and Structure Database (FDSD). },
keywords = {Financial development; Knowledge Economy},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2013b,
title = {The ‘Knowledge Economy’-finance nexus: how do IPRs matter in SSA and MENA countries? },
author = {Simplice A. Asongu },
editor = {2013 African Governance and Development Institute WP/13/023
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Knowledge-Economy-Finance-Nexus.-How-do-IPRs-matter-in-SSA-and-MENA-countries.pdf},
year = {2013},
date = {2013-01-01},
abstract = {This paper assesses the relevance of intellectual property rights (IPRs) in the
knowledge economy (KE)-finance nexus using the four variables identified under the World
Bank’s knowledge economy index (KEI) and seven financial intermediary dynamics of depth,
efficiency, activity and size. Three main findings are established: (1) education increases
financial dynamics of depth and size; (2) economic incentives by means of credit facilities
(trade openness) mitigate financial dynamics of efficiency and activity (financial dynamics of
depth and size) and; (3) ICT and FDI both improve financial depth and decrease financial size
(with FDI having an additional edge of improving financial activity). As a policy implication,
the enforcement of IPRs is not a general and sufficient condition for positive KE-finance
nexuses. Hence, blanket upholding of IPRs to achieve such positive linkages may not be
successful unless policy is contingent on the prevailing ‘KE specific component’ trends and
dynamics of financial development.
},
keywords = {Financial development; Knowledge economy; Intellectual property rights},
pubstate = {published},
tppubtype = {workingpaper}
}

@article{Asongu,2012,
title = {Bank Efficiency and Openness: do income levels matter in Africa?},
author = {Simplice A. Asongu },
year = {2012},
date = {2012-12-18},
journal = {Review of Finance and Banking},
volume = {4},
number = {2},
pages = {115-122 },
abstract = {This paper integrates a previously missing wealth-effect component in the openness-finance debate. From a panel of 29 low and middle income African countries with data spanning from 1987 to 2008, we provide evidence that openness (trade and financial) triggers less bank efficiency in low income countries than in their middle income counterparts. These findings justify the absence of a banking comparative advantage and consequently, the issue of over-liquidity resulting from low funding of economic operators with mobilized financial deposits. In terms of policy implications, globalization increases economic cost of banks in sampled countries, with trade openness more detrimental than financial openness. Banks in middle income countries play a greater role in financing activities resulting from trade openness than those in low income countries. Also, a lot needs to be done on the improvement of infrastructures that curtails information asymmetry in the banking industry.},
keywords = {Banking; Intermediation Efficiency; Openness; Panel Data; Africa},
pubstate = {published},
tppubtype = {article}
}

@workingpaper{Asongu2012,
title = {A Short-run Schumpeterian Trip to Embryonic African Monetary Zones},
author = {Simplice A. Asongu },
editor = { 2012 African Governance and Development Institute WP/12/001
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/A-Schumpeterian-Trip-to-Embryonic-African-Monetary-Zones.pdf},
year = {2012},
date = {2012-12-01},
abstract = {With the spectre of the Euro crisis looming substantially large and scaring potential
monetary unions, this study is a short-run trip to embryonic African monetary zones to assess
the Schumpeterian thesis for positive spillovers of financial services on growth. Causality
analysis is performed with seven financial development and three growth indicators in the
proposed West African Monetary Zone (WAMZ) and East African Monetary Zone (EAMZ).
The journey is promising for the EAMZ and lamentable for the WAMZ. Results of the EAMZ
are broadly consistent with the traditional discretionary monetary policy arrangements while
those of the WAMZ are in line with the non-traditional strand of regimes in which, policy
instruments in the short-run cannot be used to offset adverse shocks to output. Policy
implications are discussed.},
keywords = {Finance; Growth; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@article{Asongu,2012,
title = {Government Quality Determinants of Stock Market Performance in African Countries},
author = {Simplice A. Asongu},
url = {http://www.tandfonline.com/doi/abs/10.1080/15228916.2012.727744},
doi = {10.1080/15228916.2012.727744},
year = {2012},
date = {2012-11-08},
journal = {Journal of African Business},
volume = {13},
number = {3},
pages = {183-199},
abstract = {How do government policies and institutions affect stock market performance? As stock markets grow broader and deeper in African countries, the question becomes more critical. Government quality dynamics of corruption control, government effectiveness, political stability or no violence, voice and accountability, regulation quality and rule of law are instrumented with income levels, religious dominations, press freedom degrees, and legal origins to account for stock market performance dynamics of capitalization, value traded, turnover and number of listed companies. The results demonstrate a significant positive association between stock market performance measures and the quality of government institutions. These findings suggest countries with better developed government institutions would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded and greater number of listed companies.},
keywords = {financial markets, government policy, Political economy},
pubstate = {published},
tppubtype = {article}
}

@workingpaper{Asongu2012b,
title = {Fighting software piracy: which governance tools matter in Africa?},
author = {Simplice A. Asongu, Antonio R. Andrés},
editor = {2012 African Governance and Development Institute WP/12/017},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-software-piracy.-Which-governance-tools-matter-in-Africa.pdf},
year = {2012},
date = {2012-11-01},
abstract = {This article integrates previously missing components of government quality into the
governance-piracy nexus in exploring governance mechanisms by which global obligations
for the treatment of IPRs are effectively transmitted from international to the national level in
the battle against piracy. It assesses the best governance tools in the fight against piracy and
upholding of Intellectual Property Rights (IPRs). The instrumentality of IPR laws (treaties) in
tackling piracy through good governance mechanisms is also examined. Findings demonstrate
that: (1) while all governance tools under consideration significantly decrease the incidence of
piracy, corruption-control is the most effective weapon; (2) but for voice and accountability,
political stability and democracy, IPR laws (treaties) are instrumental in tackling piracy
through government quality dynamics of rule of law, regulation quality, government
effectiveness, corruption-control, and press freedom. Hence, the need for a policy approach
most conducive to expanding development is to implement an integrated system of both IPRs
and corollary good governance policies. Moreover, our findings support the relevance of good
governance measures in developing countries wishing to complement their emerging IPR
regimes.
},
keywords = {Software piracy; Governance tools; Intellectual property rights; Instrumental variables},
pubstate = {published},
tppubtype = {workingpaper}
}

@article{Asongu,2012,
title = {The 2011 Japanese earthquake, tsunami and nuclear crisis: evidence of contagion from international financial markets},
author = {Simplice A. Asongu },
url = {
http://dx.doi.org/10.1108/17576381211279307},
doi = {10.1108/17576381211279307},
year = {2012},
date = {2012-10-17},
journal = {Journal of Financial Economic Policy},
volume = {4},
number = {4},
pages = {340 - 353},
abstract = {Purpose
– Natural disasters may inflict significant damage upon international financial markets. The purpose of this study is to investigate if any contagion effect occurred in the immediate aftermath of the Japanese earthquake, tsunami and subsequent nuclear crisis.

Design/methodology/approach
– Using 33 international stock indices and exchange rates, this paper uses heteroscedasticity biases based on correlation coefficients to examine if any contagion occurred across financial markets after the March 11, 2011 Japanese earthquake, tsunami and nuclear crisis. The sample period is partitioned into two sections: the 12‐month pre‐earthquake period (March 11, 2010 to March 10, 2011) and the 2‐month post‐earthquake period (March 11, 2011 to May 10, 2011). While the stability period is defined as the pre‐earthquake period, the turbulent (turmoil) period is defined as the post‐earthquake period. In a bid to ensure robustness of the findings, the turmoil period is further partitioned into two equal sections: the 1‐month (short‐term) post‐earthquake period (March 11, 2011 to April 10, 2011), and the 2‐month (medium‐term) post‐earthquake (March 11, 2011 to May 10, 2011).

Findings
– Findings reveal that, while no sampled foreign exchange markets suffered from contagion, stock markets of Taiwan, Bahrain, Saudi Arabia and South Africa witnessed a contagion effect.

Practical implications
– The results have two paramount implications. First, the paper has confirmed existing consensus that in the face of natural crises that could take an international scale, emerging markets are contagiously affected for the most part. Second, the empirical evidence also suggests that international financial market transmissions not only occur during financial crisis; natural disaster effects should not be undermined.

Originality/value
– This paper has shown that the correlation structure of international financial markets are also affected by high profile natural disasters.},
keywords = {Contagion, Earthquakes, financial markets, International financial markets, Japan, Japanese earthquake, stock markets},
pubstate = {published},
tppubtype = {article}
}