PUBLICATIONS

@workingpaper{Asongu2011bi,
title = {Law and Investment in Africa},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/014},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Law-and-Investment-in-Africa.pdf},
year = {2011},
date = {2011-11-01},
abstract = {Contrary to mainstream consensus on the dominance of English common law countries in
investment prospects, this paper sets a new tone in the legal origins debate by providing
empirical validity on the dominance of French civil-law countries in private investment. The
assessment is based on 38 African countries for the period 1996-2007. The law mechanisms of
regulation quality and rule of law are used to investigate how legal origins (French, English,
French sub-Saharan, Portuguese and North African) have influenced a plethora of investment
dynamics (domestic, foreign, private and public). The dominance of French civil law countries in
prospects for private investments could be traceable to their relatively low and stable inflation
rates from common monetary policies.},
keywords = {Law; Investment; Developing countries},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bj,
title = {Investment and Inequality in Africa: which financial channels are good for the poor?},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/015},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Investment-and-Inequality-in-Africa.-Which-Financial-Channels-are-Good-for-the-Poor.pdf},
year = {2011},
date = {2011-11-01},
abstract = {This paper examines how domestic, foreign, private and public investments affect incomeinequality
through financial intermediary dynamics. With the exception of financial allocation
efficiency, financial channels of depth and activity are good for the poor as they diminish
estimated household income-inequality. Financial size does not have a significant incomeredistributive
effect. Financial efficiency has a disequalizing effect, implying policies designed to
improve the allocation of mobilized funds only benefit the rich to the detriment of the poor. The
use of financial and investment dimensions previously missing in the literature provide new
insights into the finance-inequality nexus. Policy implications are discussed.},
keywords = {Finance; Investment; Poverty; Inequality; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bk,
title = {Law, Economic Growth and Human Development: Evidence from Africa},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/010},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Law-economic-growth-and-human-development.-Evidence-from-Africa.pdf},
year = {2011},
date = {2011-10-01},
abstract = {This paper cuts adrift the mainstream approach to the legal-origins debate on the law-growth
nexus by integrating both overall economic and human components in our understanding of
how regulation quality and the rule of law lie at the heart of economic and inequality adjusted
human developments. Findings summarily reveal that legal-origin does not explain economic
growth and human development beyond the mechanisms of law. Our results support the current
consensus that, English common-law countries provide for better legal systems that improve
conditions for economic growth and human development than French civil-law countries.
Portuguese civil-law countries lie between the French-speaking and North African countries,
while French sub-Saharan Africa is slightly below the average of Francophone Africa. As a
policy implication, results support the benefits of the rule of law and quality of regulation as
channels to economic growth and human development.},
keywords = {Law; economic growth; human development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bl,
title = {Why do French civil-law countries have higher levels of financial efficiency?},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/011},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Why-do-french-civil-law-countries-have-higher-levels-of-financial-efficiency.pdf},
year = {2011},
date = {2011-10-01},
abstract = {The dominance of English common-law countries in prospects for financial development
in the legal-origins debate has been debunked by recent findings. Using exchange rate regimes
and economic/monetary integration oriented hypotheses, this paper proposes an “inflation
uncertainty theory” in providing theoretical justification and empirical validity as to why French
civil-law countries have higher levels of financial allocation efficiency. Inflation uncertainty,
typical of floating exchange rate regimes accounts for the allocation inefficiency of financial
intermediary institutions in English common-law countries. As a policy implication, results
support the benefits of fixed exchange rate regimes in financial intermediary allocation
efficiency.},
keywords = {Banking; allocation efficiency; exchange rate; inflation; economic integration},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bm,
title = {Financial Determinants of Human Development in Developing Countries},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/012},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-determinants-of-human-development-in-Africa.pdf},
year = {2011},
date = {2011-10-01},
abstract = {Hitherto financial drivers of human development have been unexplored by the UNDP.
This paper assesses determinants of human development from financial dynamics of depth,
efficiency, size and activity on data from 38 developing countries. While the importance of
financial activity, size and depth (in decreasing order) is significant for inequality adjusted
human development, financial allocation efficiency significantly undermines welfare. As a
policy implication results do not support financial allocation efficiency as a driver of human
development.},
keywords = {Banking; human development; developing countries; instrumental variables},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bn,
title = {Globalization, Financial Development and Regional Economic Dynamics: asymmetric panel evidence from Africa},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/008},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalization,-Financial-Development-and-Regional-Economic-Dynamics.-Asymmetric-panel-evidence-from-Africa.pdf},
year = {2011},
date = {2011-09-01},
abstract = {This paper examines how regionalization in the face of globalization has affected financial
development in the context of banking system efficiency in Africa. Results which are robust to
financial system efficiency and growth-led-finance nexus reveal that in the post-regionalization
era: (1) UEMOA and CEMAC regional banks’ ability to finance credit by deposits has reduced;
(2) financial institutions of COMESA have improved their capacity to fund openness related
activities/projects with deposits; (3) increase in welfare has positively affected the intermediary
role of banks; (4) globalization tends to be more detrimental to financial systems of ‘economic and
monetary’ regions than to those of purely economic regions. As a policy implication, national and
regional authorities should gain knowledge of the fact that with openness, the role of domestic and
regional banks seems to lessen in the funding of openness related activities and projects. Much
needs to be done on the improvement of infrastructure that curtails information asymmetry in the
banking industry.},
keywords = {Globalization; Financial Development; Regional Integration; Panel; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bo,
title = {Law and Finance in Africa},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/009},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Law-and-finance-Africa.pdf},
year = {2011},
date = {2011-09-01},
abstract = {This paper assesses how legal origin influences financial development through regulation
quality and the rule of law. It employs all the dimensions identified by the Financial
Development and Structure Database of the World Bank. The law channels are instrumented
with legal origins to account for financial intermediary dynamics of depth, efficiency, activity
and size. The results broadly support the benefits of law mechanisms in financial development.
The findings only show partial support for the consensus that English common law countries
provide better conditions for financial development. While they dominate in dynamics of depth,
activity and size, French civil law countries have an edge in financial allocation efficiency.
Portuguese civil law countries broadly fall in-between. With the exception of financial
efficiency, French civil law sub-Saharan African (SSA) countries are least while North African
countries dominate even English common law countries in financial intermediary aspects of
depth and activity. French SSA countries dominate overall in allocation efficiency.},
keywords = {Law; Finance; Banks; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2011bp,
title = {Law, finance, economic growth and welfare: why does legal origin matter?},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/007},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Law-finance-economic-growth-and-welfare.-Why-does-legal-origin-matter.pdf},
year = {2011},
date = {2011-08-01},
abstract = {This paper proposes and empirically validates four theories of why legal origin influences
growth and welfare through finance. It is a natural extension of “Law and finance: why does
legal origin matter?” by Thorsten Beck, Asli Demirgüç-Kunt and Ross Levine (2003). We find
only partial support for the Mundell (1972), La Porta et al. (1998) and Beck et al. (2003)
hypotheses that English common-law countries tend to have better developed financial
intermediaries than French civil-law countries. While countries with English legal tradition have
legal systems that improve financial depth, activity and size, countries with French legal origin
overwhelmingly dominate in financial intermediary allocation efficiency. Countries with
Portuguese legal origin fall in-between.},
keywords = {Law; Financial development; Growth; Welfare},
pubstate = {published},
tppubtype = {workingpaper}
}