AGDI currently has about 300 publications.
2016 |
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| 531. | Asongu, Chinelo Okafor Vanessa Tchamyou & Belmondo Tanankem Uchenna Efobi Simplice 2016. Abstract | Links | BibTeX | Tags: Africa; Financial development; Industrialisation; Remittances @workingpaper{Asongu_528, author = {Chinelo Okafor Vanessa Tchamyou & Belmondo Tanankem Uchenna Efobi Simplice Asongu}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/remittances-finance-and-industralisation-in-Africa.pdf}, year = {2016}, date = {2016-10-01}, abstract = {The paper assesses how remittances directly and indirectly affect industrialisation in a panel of 49 African countries for the period 1980-2014. The indirect impact is assessed through financial development channels. The empirical evidence is based on three interactive and non-interactive simultaneity-robust estimation techniques, namely: (i) Instrumental Fixed Effects (FE) to control for the unobserved heterogeneity; (ii) Generalised Method of Moments (GMM) to control for persistence in industrialisation and (iii) Instrumental Quantile Regressions (QR) to account for initial levels of industrialisation. The non-interactive specification elucidates direct effects of remittances on industrialisation whereas interactive specifications explain indirect impacts. The findings broadly show that for certain initial levels of industrialisation, remittances can drive industrialisation through the financial development mechanism. Policy implications are discussed.}, keywords = {Africa; Financial development; Industrialisation; Remittances}, pubstate = {published}, tppubtype = {workingpaper} } The paper assesses how remittances directly and indirectly affect industrialisation in a panel of 49 African countries for the period 1980-2014. The indirect impact is assessed through financial development channels. The empirical evidence is based on three interactive and non-interactive simultaneity-robust estimation techniques, namely: (i) Instrumental Fixed Effects (FE) to control for the unobserved heterogeneity; (ii) Generalised Method of Moments (GMM) to control for persistence in industrialisation and (iii) Instrumental Quantile Regressions (QR) to account for initial levels of industrialisation. The non-interactive specification elucidates direct effects of remittances on industrialisation whereas interactive specifications explain indirect impacts. The findings broadly show that for certain initial levels of industrialisation, remittances can drive industrialisation through the financial development mechanism. Policy implications are discussed. |
| 532. | Asongu, Rangan Gupta Simplice Economics Bulletin, 36 (3), pp. 1854-1867, 2016. Abstract | Links | BibTeX | Tags: Trust; Inclusive Growth; Conditional Effects @article{Asongu_529, author = {Rangan Gupta Simplice Asongu}, url = {http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I3-P181.pdf}, year = {2016}, date = {2016-09-30}, journal = {Economics Bulletin}, volume = {36}, number = {3}, pages = {1854-1867}, abstract = {The transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has substantially shifted the policy debate from growth to inclusive growth. In this short note, we revisit the trust-growth nexus by exploiting a dataset on quality of growth (QG), recently made available to the scientific community. The empirical evidence is based on interactive contemporary and non-contemporary quantile regressions. Inequality and human development modifying variables are used as additional controls. The findings broadly support the positive role of trust in QG. In addition, relatively high thresholds of inequality are needed to change this positive trust-QG nexus in some distributions. The dominant shape from the influence of inclusive/human development is Kuznets or inverted Ushape: the return of inclusive/human development in the trust-QG nexus is decreasing in the bottom half of the QG distributions. As a main policy implication, decreasing (increasing) inequality (human development) would improve the positive trust-QG nexus in countries with low levels of QG.}, keywords = {Trust; Inclusive Growth; Conditional Effects}, pubstate = {published}, tppubtype = {article} } The transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has substantially shifted the policy debate from growth to inclusive growth. In this short note, we revisit the trust-growth nexus by exploiting a dataset on quality of growth (QG), recently made available to the scientific community. The empirical evidence is based on interactive contemporary and non-contemporary quantile regressions. Inequality and human development modifying variables are used as additional controls. The findings broadly support the positive role of trust in QG. In addition, relatively high thresholds of inequality are needed to change this positive trust-QG nexus in some distributions. The dominant shape from the influence of inclusive/human development is Kuznets or inverted Ushape: the return of inclusive/human development in the trust-QG nexus is decreasing in the bottom half of the QG distributions. As a main policy implication, decreasing (increasing) inequality (human development) would improve the positive trust-QG nexus in countries with low levels of QG. |
| 533. | Kodila-Tedika, Simplice Asongu Oasis A International Journal of Social Economics, 43 (10), pp. 1016-1030, 2016. Abstract | Links | BibTeX | Tags: Africa, Lobbying, Nation building, Rent seeking, State fragility @article{Asongu_530, author = {Simplice Asongu A Oasis Kodila-Tedika}, url = {http://www.emeraldinsight.com/doi/abs/10.1108/IJSE-11-2014-0234}, doi = {10.1108/IJSE-11-2014-0234}, year = {2016}, date = {2016-09-28}, journal = {International Journal of Social Economics}, volume = {43}, number = {10}, pages = {1016-1030}, abstract = {Purpose The purpose of this paper is to assess the determinants of state fragility in Sub-Saharan Africa (SSA) using hitherto unexplored variables in the literature. Design/methodology/approach 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. Findings 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 mitigates the probability of state fragility while the interaction between natural resources and political interferences breeds the probability of extreme state fragility. Practical implications There are two main policy implications. First, political interference, rent seeking and lobbying are likely to increase the fragility of SSA nations. Second, 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. Originality/value The study is timely given the political strife, violence and conflicts issues currently affecting African development.}, keywords = {Africa, Lobbying, Nation building, Rent seeking, State fragility}, pubstate = {published}, tppubtype = {article} } Purpose The purpose of this paper is to assess the determinants of state fragility in Sub-Saharan Africa (SSA) using hitherto unexplored variables in the literature. Design/methodology/approach 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. Findings 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 mitigates the probability of state fragility while the interaction between natural resources and political interferences breeds the probability of extreme state fragility. Practical implications There are two main policy implications. First, political interference, rent seeking and lobbying are likely to increase the fragility of SSA nations. Second, 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. Originality/value The study is timely given the political strife, violence and conflicts issues currently affecting African development. |
| 534. | Asongu, Jacinta Nwachukwu Simplice C A 2016. Abstract | Links | BibTeX | Tags: Exports, Foreign Aid; Terrorism; Natural Resources; Development @workingpaper{Asongu_531, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Conditional-linkages-between-iron-ore-exports-aid-and-terrrorism.pdf}, year = {2016}, date = {2016-09-20}, abstract = {We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period 1984-2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports.}, keywords = {Exports, Foreign Aid; Terrorism; Natural Resources; Development}, pubstate = {published}, tppubtype = {workingpaper} } We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period 1984-2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports. |
| 535. | A., Le Roux Tchamyou Asongu S S V S 2016. Abstract | Links | BibTeX | Tags: Capital flight, Corruption, Development, External Debts, Poverty @workingpaper{Asongu_532, author = {Le Roux Tchamyou S S V Asongu S. A.}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Unjust-Enrichment-from-Official-Corruption-in-Africa.pdf}, year = {2016}, date = {2016-09-17}, abstract = {A 2015 World Bank report on the achievement of Millennium Development Goals (MDGs) revealed that since the 1990s, extreme poverty has been decreasing in all regions of the world with the exception of Africa where about 50 percent of countries in Sub-Saharan Africa did not achieve the MDG extreme poverty target despite the sub-region enjoying more than two decades of GDP growth resurgence. The purpose of this chapter is twofold. First to understand the interconnections between the large pool of capital transferred to the OECD countries and the corrupt deposits of stolen public funds. Second, to illustrate how such diversion of funds overseas are related to the spread of poverty in the African economies. We enunciate a ‘poverty multiplier theory’ and propose a model for its application within an African context. The ‘poverty multiplier theory’ postulates that: (i) one unit of currency deposited abroad represents a loss in financial development at home (ii) a fraction of the unit currency placed in foreign bank accounts is redirected to the domestic economy in the form of external debt. This external debt is further siphoned overseas through interest and loan principal repayment. Policy implications of these processes are discussed.}, keywords = {Capital flight, Corruption, Development, External Debts, Poverty}, pubstate = {published}, tppubtype = {workingpaper} } A 2015 World Bank report on the achievement of Millennium Development Goals (MDGs) revealed that since the 1990s, extreme poverty has been decreasing in all regions of the world with the exception of Africa where about 50 percent of countries in Sub-Saharan Africa did not achieve the MDG extreme poverty target despite the sub-region enjoying more than two decades of GDP growth resurgence. The purpose of this chapter is twofold. First to understand the interconnections between the large pool of capital transferred to the OECD countries and the corrupt deposits of stolen public funds. Second, to illustrate how such diversion of funds overseas are related to the spread of poverty in the African economies. We enunciate a ‘poverty multiplier theory’ and propose a model for its application within an African context. The ‘poverty multiplier theory’ postulates that: (i) one unit of currency deposited abroad represents a loss in financial development at home (ii) a fraction of the unit currency placed in foreign bank accounts is redirected to the domestic economy in the form of external debt. This external debt is further siphoned overseas through interest and loan principal repayment. Policy implications of these processes are discussed. |
| 536. | Andrés, Simplice Asongu Antonio A R Journal of Economic Studies, 43 (5), pp. 780-800, 2016. Abstract | Links | BibTeX | Tags: Intellectual property rights, panel data models, Software piracy @article{Asongu_533, author = {Simplice Asongu A Antonio R. Andrés}, url = {http://www.emeraldinsight.com/doi/abs/10.1108/JES-06-2015-0093}, doi = {10.1108/JES-06-2015-0093}, year = {2016}, date = {2016-09-15}, journal = {Journal of Economic Studies}, volume = {43}, number = {5}, pages = {780-800}, abstract = {Purpose The purpose of this paper is to examine global trajectories, dynamics, and tendencies of software piracy to ease the benchmarking of current efforts toward harmonizing the standards and enforcements of intellectual property rights (henceforth IPRs) protection worldwide. Design/methodology/approach For that purpose, the authors estimate dynamic panel data models for 99 countries over the period 1994-2010. Findings The main finding suggest that, a genuine timeframe for standardizing IPRs laws in the fight against software piracy is most feasible within a horizon of 4.3-10.4 years. In other words, full (100 percent) convergence within the specified timeframe will mean the enforcements of IPRs regimes without distinction of nationality or locality within identified fundamental characteristics of software piracy. The absence of convergence (in absolute and conditional terms) for the World panel indicates that, blanket policies may not be effective unless they are contingent on the prevailing trajectories, dynamics and tendencies of software piracy. Policy implications and caveats are also discussed. Originality/value It is the first attempt to empirically assess the convergence of IPRs systems across countries.}, keywords = {Intellectual property rights, panel data models, Software piracy}, pubstate = {published}, tppubtype = {article} } Purpose The purpose of this paper is to examine global trajectories, dynamics, and tendencies of software piracy to ease the benchmarking of current efforts toward harmonizing the standards and enforcements of intellectual property rights (henceforth IPRs) protection worldwide. Design/methodology/approach For that purpose, the authors estimate dynamic panel data models for 99 countries over the period 1994-2010. Findings The main finding suggest that, a genuine timeframe for standardizing IPRs laws in the fight against software piracy is most feasible within a horizon of 4.3-10.4 years. In other words, full (100 percent) convergence within the specified timeframe will mean the enforcements of IPRs regimes without distinction of nationality or locality within identified fundamental characteristics of software piracy. The absence of convergence (in absolute and conditional terms) for the World panel indicates that, blanket policies may not be effective unless they are contingent on the prevailing trajectories, dynamics and tendencies of software piracy. Policy implications and caveats are also discussed. Originality/value It is the first attempt to empirically assess the convergence of IPRs systems across countries. |
| 537. | Raheem, Simplice Asongu Ibrahim A D 2016. Abstract | Links | BibTeX | Tags: Dollarization; Openness; Resources; Tobit regression; SSA @workingpaper{Asongu_534, author = {Simplice Asongu A Ibrahim D. Raheem}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Extending-the-Determinants-of-Dollarization-in-SSA.pdf}, year = {2016}, date = {2016-09-14}, abstract = {This study argues that the ease at which economic agents have access to foreign earnings would influence/increase the level of dollarization in the economy. The three sources of foreign currency earnings are financial integration, trade openness and natural resource rent. As such, we extend the determinants of dollarization to capture these variables. A dataset of 26 countries in sub-Saharan Africa (SSA) for the period 2001 – 2012 was built. Based on Tobit regression, we found that all the proxies of foreign currency earning, with the exception of natural resource rent, are significant contributors to the increasing rate of dollarization. Specifically, it was found that trade openness and financial liberalization are positive determinants of dollarization, while natural resource rent serves as drag to the dollarization process. These results remain valid to three robustness tests. Policy implications and suggestions for future research were proposed.}, keywords = {Dollarization; Openness; Resources; Tobit regression; SSA}, pubstate = {published}, tppubtype = {workingpaper} } This study argues that the ease at which economic agents have access to foreign earnings would influence/increase the level of dollarization in the economy. The three sources of foreign currency earnings are financial integration, trade openness and natural resource rent. As such, we extend the determinants of dollarization to capture these variables. A dataset of 26 countries in sub-Saharan Africa (SSA) for the period 2001 – 2012 was built. Based on Tobit regression, we found that all the proxies of foreign currency earning, with the exception of natural resource rent, are significant contributors to the increasing rate of dollarization. Specifically, it was found that trade openness and financial liberalization are positive determinants of dollarization, while natural resource rent serves as drag to the dollarization process. These results remain valid to three robustness tests. Policy implications and suggestions for future research were proposed. |
| 538. | Asongu, Jacinta Nwachukwu Simplice C A The Social Science Journal, 2016. Abstract | Links | BibTeX | Tags: Quality of growth; Development; Education; Health @article{Asongu_535, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://www.sciencedirect.com/science/article/pii/S0362331916300477}, doi = {10.1016/j.soscij.2016.08.006}, year = {2016}, date = {2016-09-11}, journal = {The Social Science Journal}, abstract = {The transition from the Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has shifted the policy debate from growth to ‘quality of growth’ (QG). We explore a new dataset on QG by the IMF and classify 93 developing countries for the period 1990–2011 in terms of Hopefuls, Contenders and Best Performers. The aims are as follows: (i) to depict the contradiction between high-growth and poor social welfare and (ii) to assess the influence of education and health spending on the QG. We use quantile regressions to articulate least and best QG performers. Two key findings emerge. First, 31 of the 33 countries in the Hopefuls category are in SSA. Second, the effect of health is decreasingly positive from Hopefuls to Best Performers, while the impact of education is increasingly positive. As a main policy implication, it would benefit countries in SSA to invest more in health relative to education now, but decrease such health expenditure and increase education spending as the economies in the sub-region make the transition from Hopeful to Contenders and finally to Best Performers in terms of ‘quality of growth’.}, keywords = {Quality of growth; Development; Education; Health}, pubstate = {published}, tppubtype = {article} } The transition from the Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has shifted the policy debate from growth to ‘quality of growth’ (QG). We explore a new dataset on QG by the IMF and classify 93 developing countries for the period 1990–2011 in terms of Hopefuls, Contenders and Best Performers. The aims are as follows: (i) to depict the contradiction between high-growth and poor social welfare and (ii) to assess the influence of education and health spending on the QG. We use quantile regressions to articulate least and best QG performers. Two key findings emerge. First, 31 of the 33 countries in the Hopefuls category are in SSA. Second, the effect of health is decreasingly positive from Hopefuls to Best Performers, while the impact of education is increasingly positive. As a main policy implication, it would benefit countries in SSA to invest more in health relative to education now, but decrease such health expenditure and increase education spending as the economies in the sub-region make the transition from Hopeful to Contenders and finally to Best Performers in terms of ‘quality of growth’. |
| 539. | Asongu, Jacinta Nwachukwu Simplice C A African Finance Journal, 18 (1), pp. 34-52, 2016. Abstract | Links | BibTeX | Tags: Banking; Mobile Phones; Shadow Economy; Financial Development; Africa @article{Asongu_536, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://www.africagrowth.com/Abstract18_1_3.htm}, year = {2016}, date = {2016-09-08}, journal = {African Finance Journal}, volume = {18}, number = {1}, pages = {34-52}, abstract = {The study assesses the role of mobile phones and mobile banking in decreasing inequality in 52 African countries. The empirical procedure involves first, examining the income-redistributive effect of mobile phone penetration and then investigating the contribution of mobile banking services in this relationship. The findings suggest an equalizing income-redistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher income-equalizing effect from mobile banking compared to mobile phone penetration. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed.}, keywords = {Banking; Mobile Phones; Shadow Economy; Financial Development; Africa}, pubstate = {published}, tppubtype = {article} } The study assesses the role of mobile phones and mobile banking in decreasing inequality in 52 African countries. The empirical procedure involves first, examining the income-redistributive effect of mobile phone penetration and then investigating the contribution of mobile banking services in this relationship. The findings suggest an equalizing income-redistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher income-equalizing effect from mobile banking compared to mobile phone penetration. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed. |
| 540. | Asongu, Raphael Akamavi & Vanessa Tchamyou Agyenim Boateng Simplice 2016. Abstract | Links | BibTeX | Tags: Financial access; Market power; Information asymmetry @workingpaper{Asongu_537, author = {Raphael Akamavi & Vanessa Tchamyou Agyenim Boateng Simplice Asongu}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Information-Asymmetry-and-Market-Power-in-the-African-Banking-Industry.pdf}, year = {2016}, date = {2016-09-06}, abstract = {This study investigates the role of information sharing offices and its association with market power in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001-2011. Five simultaneity-robust estimation techniques are employed, namely: (i) Two Stage Least Squares; (ii) Instrumental Fixed effects to control for the unobserved heterogeneity; (iii) Instrumental Tobit regressions to control for the limited range in the dependent variable; (iv) Generalised Method of Moments (GMM) to control for persistence in market power and (v) Instrumental Quantile Regressions (QR) to account for initial levels of market power. The following findings have been established from non-interactive regressions. First, the effects of information sharing offices are significant in Two Stage Least Squares, with a positive effect from private credit bureaus. Second, in GMM, public credit registries increase market power. Third, from Quintile Regressions, private credit bureaus consistently increase market power throughout the conditional distributions of market power. Given that the above findings are contrary to theoretical postulations, we extended the analytical framework with interactive regressions in order to assess whether the anticipated effects can be established if information sharing offices are increased. The extended findings show a: (i) negative net effect from public credit registries on market power in GMM regressions and; (ii) negative net impacts from public credit registries on market power in the 0.25th and 0.50th quintiles of market power.}, keywords = {Financial access; Market power; Information asymmetry}, pubstate = {published}, tppubtype = {workingpaper} } This study investigates the role of information sharing offices and its association with market power in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001-2011. Five simultaneity-robust estimation techniques are employed, namely: (i) Two Stage Least Squares; (ii) Instrumental Fixed effects to control for the unobserved heterogeneity; (iii) Instrumental Tobit regressions to control for the limited range in the dependent variable; (iv) Generalised Method of Moments (GMM) to control for persistence in market power and (v) Instrumental Quantile Regressions (QR) to account for initial levels of market power. The following findings have been established from non-interactive regressions. First, the effects of information sharing offices are significant in Two Stage Least Squares, with a positive effect from private credit bureaus. Second, in GMM, public credit registries increase market power. Third, from Quintile Regressions, private credit bureaus consistently increase market power throughout the conditional distributions of market power. Given that the above findings are contrary to theoretical postulations, we extended the analytical framework with interactive regressions in order to assess whether the anticipated effects can be established if information sharing offices are increased. The extended findings show a: (i) negative net effect from public credit registries on market power in GMM regressions and; (ii) negative net impacts from public credit registries on market power in the 0.25th and 0.50th quintiles of market power. |
