@workingpaper{Asongu2011b,
title = {The 2011 Japanese earthquake, tsunami and nuclear crisis: evidence of contagion from international financial markets},
author = {Simplice A. Asongu },
editor = {2011 African Governance and Development Institute WP/11/006
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Japanese-earthquake-tsunami-and-nuclear-crisis.-Evidence-of-contagion-from-international-financial-markets.pdf},
year = {2011},
date = {2011-05-01},
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 preearthquake
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 our 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 – Our results have two paramount implications. Firstly, we have
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. Secondly, the empirical
evidence also suggest 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 = {Japanese Earthquake; Contagion; International Financial Markets},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011b,
title = {Political Crises and Risk of Financial Contagion in Developing Countries: Evidence from Africa},
author = {Simplice A. Asongu },
editor = { 2011 African Governance and Development Institute WP/11/003
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Political-crises-in-Africa-and-risk-of-financial-contagion.pdf},
year = {2011},
date = {2011-04-01},
abstract = {The recent waves of political crises in Africa and the Middle East have inspired the debate
over how political instability could pose a risk of financial contagion to emerging countries.
With retrospect to the Kenyan political crisis, our findings suggest stock markets in Lebanon,
Mauritius were contaminated while Nigeria experienced a positive spillover. Our results have
two major implications. Firstly, we have confirmed existing consensus that African financial
markets are increasingly integrated. Secondly, we have also shown that international financial
market transmissions not only occur during financial crisis; political crises effects should not
be undermined.},
keywords = {Political crisis; Contagion; Developing countries; Equity Markets},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011b,
title = {Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries },
author = {Simplice A. Asongu },
editor = { 2011 African Governance and Development Institute WP/11/004
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalisation-financial-crisis-and-contagion.-Time-dynamic-evidence-from-financial-markets-of-developing-countries.pdf},
year = {2011},
date = {2011-04-01},
abstract = {Financial integration among economies has the benefit of improving allocation
efficiency and diversifying risk. However the recent global financial crisis, considered as
the worst since the Great Depression has re-ignited the fierce debate about the merits of
financial globalization and its implications for growth especially in developing countries.
This paper examines whether equity markets in emerging countries were vulnerable to
contagion during the recent financial meltdown. Findings show: (1) with the exceptions of
India and Dhaka, Asian markets were worst hit; (2) but for Peru, Venezuela and
Columbia, Latin American countries were least affected; (3) Africa and Middle East
emerging markets were averagely contaminated with the exceptions of Kenya, Namibia,
Nigeria, Morocco, Dubai, Jordan, Israel, Oman, Saudi Arabia and Lebanon. Results
have two important policy implications. Firstly, we confirm that Latin America was most
prepared to brace the financial crisis, implying their fiscal and monetary policies are
desirous of examination and imitation. Secondly, we have confirmed that strategic
opening of the current and capital accounts based on empirical evidence for a given
region/country as practiced by India is a caution against global economic and financial
shocks.},
keywords = {Globalization; Financial crisis; Contagion; developing countries; Equity Markets},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011b,
title = {How would population growth affect investment in the future? Asymmetric panel causality evidence for Africa},
author = {Simplice A. Asongu },
editor = { 2011 African Governance and Development Institute WP/11/002
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/How-would-population-growth-affect-investment-in-thefuture.-Asymmetric-panel-causality-evidence-for-Africa.pdf},
year = {2011},
date = {2011-02-01},
abstract = {Our generation is experiencing the greatest demographic transition and Africa is at the center
of it. There is mounting concern over corresponding rising unemployment and depleting per
capita income. We examine the issues in this paper from a long-run perspective by assessing
the relationships among population growth and a plethora of investment dynamics: public,
private, foreign and domestic investments. Using asymmetric panels from 38 countries with
data spanning from 1977 to 2007, our findings reveal a long-run positive causal linkage from
population growth to only public investment. But for domestic investment, permanent
fluctuations in human capital affect permanent changes in other forms of investments.
Robustness checks on corresponding short-run Granger causality analysis and the long-run
‘physical capital led investment’ nexus are consistent with the predictions of economic theory.
As a policy implication, population growth may strangle only public finances in the long-run.
Hence, the need for measures that encourage family planning and create a conducive
investment climate (and ease of doing business) for private and foreign investments.
Seemingly, structural adjustments policies implemented by sampled countries may not have
the desired investment effects in the distant future.},
keywords = {productivity; investment; human capital; asymmetric panel; causality; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011,
title = {Long-term effects of population growth on aggregate investment dynamics: selected country evidence for Africa},
author = {Simplice A. Asongu },
editor = {2011 African Governance and Development Institute WP/11/001
},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Long-term-effects-of-population-growth-on-aggregate-investment-dynamics.-Evidence-from-Africa.pdf},
year = {2011},
date = {2011-01-01},
abstract = {Purpose – Our generation is witnessing the greatest demographic transition and Africa is at
the heart of it. There is mounting concern over corresponding rising unemployment and
depleting per capita income. I examine the issues in this paper from a long-run perspective by
assessing the relationships between population growth and a plethora of investment dynamics:
public, private, foreign and domestic investments.
Design/methodology/approach – Vector autoregressive models in the perspectives of vector
error correction and short-run Granger causality are used.
Findings – In the long-run population growth will: (1) decrease foreign and public
investments in Ivory Coast; (2) increase public and private investments in Swaziland; (3)
deplete public investment but augment domestic investment in Zambia; (4) diminish private
investment and improve domestic investment in the Congo Republic and Sudan respectively.
Practical implications – Mainstream positive linkage of population growth to investment
growth in the long-term should be treated with extreme caution. Policy orientation should not
be blanket, but contingent on country-specific trends and tailored differently across countries.
The findings stress the need for the creation of a conducive investment climate (and ease of
doing business) for private and foreign investments. Family planning and birth control
policies could also be considered in countries with little future investment avenues.
Originality/value – The objective of this study is to provide policy makers with some
insights on how future investment opportunities could help manage rising population growth
and corresponding unemployment.
},
keywords = {Productivity; Investment; Human capital; Causality; Africa.},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2010b,
title = {Post-Crisis Bank Liquidity Risk Management Disclosure},
author = {Simplice A. Asongu },
editor = {2010 African Governance and Development Institute WP/10/002},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Post-crisis-bank-liquidity-risk-management-disclosure.pdf},
year = {2010},
date = {2010-12-01},
abstract = {Purpose – This work seeks to investigate post-crisis measures banks have adopted in a bid to
manage liquidity risk. It is based on the fact that the financial liquidity market was greatly
affected during the recent economic turmoil and financial meltdown. During the crisis, liquidity
risk management disclosure was crucial for confidence building in market participants.
Design/methodology/approach – The study investigates if Basel II pillar 3 disclosures on
liquidity risk management are applied by 20 of top 33 world banks. Bank selection is based on
information availability, geographic balance and comprehensiveness of the language in which
information is provided. This information is searched from the World Wide Web, with a
minimum of one hour allocated to ‘content search’, and indefinite time for ‘content analyses’.
Such content scrutiny is guided by 16 disclosure principles classified in four main categories.
Findings – Only 25% of sampled banks provide publicly accessible liquidity risk management
information; a clear indication that in the post-crisis era, many top ranking banks do not still take
Basel disclosure norms seriously, especially the February 2008 pre-crisis warning by the Basel
Committee on Banking Supervision.
Implications/limitations – Bank stakeholders should easily have access to information on
liquidity risk management. Banks falling-short of making such information available might not
inspire confidence in market participants in events of financial panic and turmoil. Like in the
run-up to the previous financial crisis, if banks are not compelled to explicitly and expressly
disclose what measures they adopt in a bid to guarantee stakeholder liquidity, the onset of any
financial shake-up would only precipitate a meltdown. The main limitation of this study is the
use of the World Wide Web as the only source of information available to bank stakeholders
and/or market participants.
Originality/value – The contribution of this paper to literature can be viewed from the role it
plays in investigating post-crisis measures banks have adopted in a bid to inform stakeholders on
their management of liquidity risk.
},
keywords = {Post-crisis; Liquidity; Risk management; Banks},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2010,
title = {Bank Efficiency and Openness in Africa: Do Income Levels Matter?},
author = {Simplice A. Asongu },
editor = {2010 African Governance and Development Institute WP/10/001},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Bank-efficiency-and-openness.-Do-income-levels-matter-in-Africa.pdf},
year = {2010},
date = {2010-12-01},
abstract = {This paper integrates a previously missing wealth-effect component in the opennessfinance
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 = {workingpaper}
}