PUBLICATIONS

@workingpaper{Asongu2015bp,
title = {How Terrorism Explains Capital Flight from Africa},
author = {Simplice Asongu A Uchenna Efobi},
editor = {African 2015 Governance and Development Institute WP/15/034},
url = {2015 African Governance and Development Institute WP/15/034},
year = {2015},
date = {2015-09-01},
abstract = {We assess the effects of terrorism on capital flight in a panel of 29 African countries for
which data is available for the period 1987-2008. The terrorism dynamics entail domestic,
transnational, unclear and total terrorisms. The empirical evidence is based on Generalised
Method of Moments (GMM) with forward orthogonal deviations and Quantile regressions
(QR). The following findings are established. First, for GMM, domestic, unclear and total
terrorisms consistently increase capital flight, with the magnitude relative higher from unclear
terrorism. Second, for QR: (i) the effect of transnational terrorism is now positively
significant in the top quantiles (0.75th and 0.90th) of the capital flight distribution, (ii)
domestic and total terrorisms are also significant in the top quantiles and (iii) unclear
terrorism is significant in the 0.10th and 0.75th quantiles. Policy implications are discussed.},
keywords = {Africa, Capital flight, terrorism},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bq,
title = {Growth and Institutions in African Development by Augustin K. Fosu},
author = {Simplice A Asongu},
editor = {African 2015 Governance and Development Institute WP/15/033},
year = {2015},
date = {2015-09-01},
abstract = {Augustin K. Fosu, a leading and respected expert in the field of African development has edited an interesting bulk of studies in a book entitled: Growth and Institutions in African Development. The book is a timely contribution to knowledge that offers very interesting insights into views and agenda within rigorous theoretical and empirical frameworks on policy issues surrounding the relevance of growth and institutions in African development. The book’s coverage comprises of 15 chapters presented into two main subject areas, namely: growth and institutions. Each of the two subjects is further divided into two parts. On the one hand, the growth area covers: (i) growth determinants (industrial embeddedness, innovation, exchange-rate regimes and environmental quality); and (ii) sectors, dynamics and distribution of growth. On the other hand, the institutions area entails: (i) institutional development; and (ii) institutions and development outcomes. An interesting common denominator among authors of various chapters in the two subject areas is that the empirical results are succinctly summarised to enhance accessibility and readability by interested readers who might have required technical reading skills to understand the rigorous empirical analyses and resulting policy insights. Hence, it is an easy-to-read and richly policy-relevant book for both specialists and non-specialists. Moreover, the underlying ease of readership is facilitated with an introductory chapter by Augustin K. Fosu which lays out the general framework with hard but interesting stylized facts, before summarising the key motivations and contributions of various chapters with very accessible and non-technical language. This is a critical review of the book.},
keywords = {Growth; Institutions; Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015br,
title = {Financial globalisation dynamic thresholds for financial development: evidence from Africa},
author = {Lieven De Moor Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/035},
url = {http://afridev.org/wp-admin/admin.php?page=teachpress%2Faddpublications.php},
year = {2015},
date = {2015-09-01},
abstract = {Purpose -
We investigate if financial development benefits from financial globalisation are questionable
until certain thresholds of financial globalisation are attained.
Design/methodology/approach -
Financial globalisation is proxied with Net Foreign Direct Investment Inflows as a percentage of
GDP (FDIgdp) whereas financial development entails dynamics of depth, efficiency, activity and
size. The empirical evidence is based on; (i) data from 53 African countries for the period 2000-
2011 and (ii) interactive Generalised Method of Moments with forward orthogonal deviations.
FindingsThe
following findings are established. First, thresholds of FDIgdp from which financial
globalisation increases money supply are 20.50 and 16.00 for below- and above-median subsamples
of financial globalisation respectively. Second, FDIgdp thresholds from which financial
globalisation increases banking system activity and financial system activity for below-median
sub-samples of financial globalisation are 13.81 and 13.29 respectively. Third, for financial size,
there is evidence of: (i) a positive threshold of 21.30 in the full sample and (ii) consistent
increasing returns without a modifying threshold for the above-median sub-sample.
Practical implicationsEvidence
of a positive threshold implies that while the initial effect of financial globalisation on
financial development is negative, there is a positive marginal effect, such that at a certain level
of FDIgdp (or threshold), the overall effect of financial globalisation on the given financial
development dynamic becomes positive. It follows that financial globalisation is both negative
and positive for financial development, with a U-shaped relationship. Therefore the appropriate
role of policy should neither be to stem the tide of capital flows nor to encourage them, but to
understand what levels or thresholds of capital flows are required to benefit domestic financial
development.
Originality/valueWe
have extended the debate on initial or threshold conditions for the financial development
benefits from financial globalisation by providing policy makers with levels of FDI (as
percentage of GDP) that are required to start materialising financial development benefits from
financial globalisation.},
keywords = {Banking; International investment; Financial integration; Development},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bs,
title = {The incremental effect of education on corruption: evidence of synergy from lifelong learning},
author = {Jacinta Nwachukwu C Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/036},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-incremental-effect-of-education-on-corruption.pdf},
year = {2015},
date = {2015-09-01},
abstract = {Education as a tool in the fight against corruption has been subject to much debate in academic
and policy making circles. This note extends what we know on this nexus in a threefold manner:
namely, in terms of: incremental, lifelong learning and synergy effects. Four main findings are
established. First, education is a powerful tool in the fight against corruption. Second, there is
evidence of an incremental effect in the transition from secondary to tertiary education. Third,
lifelong learning defined as knowledge acquired during primary, secondary and tertiary education
negatively affects corruption. Fourth, there is evidence of a ‘synergy effect’ because the impact
of lifelong learning is higher than the combined effects of various educational levels. The
empirical evidence is based on 53 African countries for the period 1996-2010. Two main policy
implications are derived. First, encouraging education through the tertiary level enhances the
fight against corruption. Second, the drive towards a knowledge economy by means of lifelong
learning has ‘corruption mitigating’ benefits.},
keywords = {Lifelong learning; Corruption; Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bt,
title = {Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach},
author = {Ghassen El Montasser & Hassen Toumi Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/037},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Relationships-between-Energy-Consumption,-CO2-emissions.pdf},
year = {2015},
date = {2015-09-01},
abstract = {This study complements existing literature by examining the nexus between energy
consumption (EC), CO2 emissions (CE) and economic growth (GDP) in 24 African countries
using a panel ARDL approach. The following findings are established. First, there is a long
run relationship between EC, CE and GDP. Second, a long term effect from CE to GDP and
EC is apparent, with reciprocal paths. Third, the error correction mechanisms are consistently
stable. However, in cases of disequilibrium only EC can be significantly adjusted to its long
run relationship. Fourth, there is a long-run causality running from GDP and CE to EC. Fifth,
we find causality running from either CE or both CE and EC to GDP and inverse causal paths
are observable. Causality from EC to GDP is not strong, which supports the conservative
hypothesis. Sixth, the causal direction from EC to GDP remains unobservable in the short
term. By contrast, the opposite path is observable. There are also no short-run causalities from
GDP, or EC, or EC and GDP to EC. Policy implications are discussed.},
keywords = {Energy consumption; CO2 emissions; Economic growth; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Ssozi2015,
title = {The Comparative Economics of Catch-Up in Output per worker, total factor productivity and technological gain in Sub-Saharan Africa},
author = {Simplice Asongu A John Ssozi},
editor = {African 2015 Governance and Development Institute WP/15/038},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Comparative-Economics-of-TFP-SSA.pdf},
year = {2015},
date = {2015-09-01},
abstract = {After investigating the effect of external financial flows on total factor productivity and
technological gain, we use the beta catch-up and sigma convergence to compare dispersions in
output per worker, total factor productivity and technological gain in Sub-Saharan Africa (SSA)
for the years 1980-2010. The comparative evidence is articulated with income levels, years of
schooling, and health factors. We find; first, a positive association between foreign direct
investment, trade openness, foreign aid, remittances and total factor productivity. However,
when foreign direct investment is interacted with schooling, it is direct effect becomes negative
on total factor productivity. Second, beta catch-up is between19.22% and 19.70% per annum
with corresponding time to full catch-up of 25.38 years and 26.01 years respectively. Third, we
find sigma-convergence among low-income nations and upper-middle income nations separately,
but not for the entire sample together. Fourth, schooling in SSA is not yet a significant source of
technology, but it can make external financial inflows more effective. Policies to induce
external financial flows are not enough for development if absorptive capacity is low. More
policy implications are discussed.},
keywords = {and Sub-Saharan Africa, Convergence, External capital flows, Human Capital, Total Factor Productivity},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bu,
title = {A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control},
author = {Jacinta Nwachukwu C Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/039},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/A-Good-Turn-Deserves-Another.Political-stability-and-corruption.pdf},
year = {2015},
date = {2015-09-01},
abstract = {We build on existing literature and contemporary challenges to African development to assess the
role of political stability in fighting corruption and boosting corruption-control in 53 African
countries for the period 1996-2010. We postulate that on the one hand, an atmosphere of political
instability should increase the confidence of impunity owing to less corruption-control. On the
other hand, in the absence such impunity from corruption, political instability further fuels
corruption. Our findings validate both hypotheses. Hence, contrary to a stream of the literature,
we establish causal evidence of a positive (negative) nexus between political stability/no violence
and corruption-control (corruption). The empirical evidence is based on Generalized Methods of
Moments. The findings are robust to contemporary and non-contemporary quantile regressions.
The political stability estimates are consistently significant with decreasing (increasing)
magnitudes throughout the conditional distributions of corruption (corruption-control). In other
words, the positive responsiveness of corruption-control to political stability is an increasing
function of corruption-control while the negative responsiveness of corruption to political
stability is a decreasing function of corruption. Simply put: a good turn deserves another.},
keywords = {Fragility; Corruption; Conflicts; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bv,
title = {Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects},
author = {Lieven De Moor Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/040},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-globalisation-and-financial-development-in-Africa.pdf},
year = {2015},
date = {2015-09-01},
abstract = {The present inquiry contributes to extant literature by simultaneously accounting for variations in
financial development and financial globalisation in the assessment of hypothetical initial
financial development conditions for the rewards of financial globalisation. The policy relevance
for assessing these variations simultaneously builds on the intuition that, thresholds for financial
development benefits of financial globalisation may also be contingent on initial levels of
financial development. For this purpose, we examine marginal, threshold and net effects of
financial globalisation on financial development throughout the conditional distributions of
financial development. The empirical evidence is based on contemporary and non-contemporary
quantile regressions with data from 53 African countries for the period 1996-2011. Financial
globalisation is measured with Net Foreign Direct Investment inflows whereas financial
development entails all dimensions identified by the Financial Development and Structure
Database of the World Bank. The findings consistently reveal: (i) positive marginal effects, (ii)
unfeasible financial globalisation positive thresholds and (iii) negative financial globalisation net
effects. The second and third findings are fundamentally due to marginal effects of low positive
magnitude. Policy implications are discussed.},
keywords = {Banking; International investment; Financial integration; Development},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2015bw,
title = {On the Empirics of Institutions and Quality of Growth: Evidence for Developing Countries},
author = {Oasis Kodila-Tedika Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/041},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/On-the-Empirics-of-Institutions-and-Quality-of-Growth.pdf},
year = {2015},
date = {2015-09-01},
abstract = {We explore a newly available dataset on quality of growth to investigate the effect of
institutions on growth quality in 93 developing countries for the period 1990 to 2011. Quality
of institutions is measured in term of political risk. The empirical evidence is based on: (i)
Ordinary Least Squares (OLS) and Two Stage Least Squares (2SLS) and (ii) cross-sectional
and panel data structures. In order to avail room for more policy implications, the dataset is
further disaggregated into income levels, namely: Lower middle income (LMIC), low income
(LI) and upper middle income (UMIC). Three main findings are established. First, institutions
are positively related to the quality of growth. Second, institutions have significantly
contributed to growth quality in increasing order during the following time intervals: 2005-
2011, 1995-1999 and 2000-2004. Third, the positive nexus between institutions and growth
quality is fundamentally driven by LMIC. Policy implications are discussed.},
keywords = {Quality of growth; Institutions; Social indicators.},
pubstate = {published},
tppubtype = {workingpaper}
}