@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}
}

@workingpaper{Asongu2012b,
title = {Fighting corruption when existing corruption-control levels count: what do wealth-effects tell us in Africa?},
author = {Simplice A. Asongu },
editor = { 2012 African 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{Asongu2012b,
title = {Are Proposed African Monetary Unions Optimal Currency Areas? Real, Monetary and Fiscal Policy Convergence Analysis},
author = {Simplice A. Asongu },
editor = { 2012 African 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{Asongu2012b,
title = {Fighting consumer price inflation in Africa. What do dynamics in money, credit, efficiency and size tell us?},
author = {Simplice A. Asongu },
editor = {2012 African 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{Asongu2012b,
title = {How has Mobile Phone Penetration Stimulated Financial Development in Africa?},
author = {Simplice A. Asongu },
editor = { 2012 African 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}
}