Financial crisis, financial globalisation and financial development in Africa

Simplice Asongu and Joseph Nnanna ()
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Joseph Nnanna: The Development Bank of Nigeria, Abuja, Nigeria

No 20/049, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study unites two streams of research by simultaneously focusing on the impact of financial globalisation on financial development and pre- and post-crisis dynamics of the investigated relationship. The empirical evidence is based on 53 African countries for the period 2004-2011 and Generalised Method of Moments. The following findings are established. First, whereas marginal effects from financial globalisation are positive on financial dynamics of activity and size, corresponding net effects (positive thresholds) are negative (within range). Second, while decreasing financial globalisation returns are apparent to financial dynamics of depth and efficiency, corresponding net effects (negative thresholds) are positive (not within range). Third, financial development dynamics are more weakly stationary and strongly convergent in the pre-crisis period. Fourth, the net effect from the: pre-crisis period is lower on money supply and banking system efficiency; post-crisis period is positive on financial system efficiency and pre-crisis period is positive on financial size.

Keywords: Banking; Financial crisis; Financial development (search for similar items in EconPapers)
JEL-codes: F02 F21 F30 F40 O10 (search for similar items in EconPapers)
Pages: 14
Date: 2020-01
New Economics Papers: this item is included in nep-fdg
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Citations: View citations in EconPapers (2)

Forthcoming: Foreign Trade Review

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http://publications.excas.org/RePEc/exs/exs-wpaper ... opment-in-Africa.pdf Revised version, 2020 (application/pdf)

Related works:
Working Paper: Financial crisis, financial globalisation and financial development in Africa (2020)
Working Paper: Financial crisis, financial globalisation and financial development in Africa (2020)
Working Paper: Financial crisis, financial globalisation and financial development in Africa (2020)
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