Financial Sector Competition and Knowledge Economy: Evidence from SSA and MENA Countries

Simplice Asongu

Journal of the Knowledge Economy, 2015, vol. 6, issue 4, 717-748

Abstract: The goal of this paper is to assess how financial sector competition plays out in the development of knowledge economy (KE). It contributes at the same time to the macroeconomic literature on measuring financial development and response to the growing field of KE by means of informal sector promotion, microfinance, and mobile banking. It suggests a practicable way to disentangle the effects of various financial sectors on different components of KE. The variables identified under the World Bank’s four knowledge economy index (KEI) are employed. Three hypotheses based on seven propositions are tested. Results show: (a) the informal financial sector, a previously missing component in the definition of the financial system by the IMF significantly affects KE dimensions; (b) disentangling different components of the existing measurement of the financial system improves dynamics in the KE–finance nexus, and (c) introduction of measures of sector importance provides relevant new insights into how financial sector competition affects KE. Copyright Springer Science+Business Media New York 2015

Keywords: Financial development; Knowledge economy; Financial sector competition; G21; O10; O34; P00; P48 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (76)

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Working Paper: Financial sector competition and knowledge economy: evidence from SSA and MENA countries (2012)
Working Paper: Financial sector competition and knowledge economy: evidence from SSA and MENA countries (2012)
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DOI: 10.1007/s13132-012-0141-4

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