African Financial Development Dynamics: Big Time Convergence

Simplice Asongu

MPRA Paper from University Library of Munich, Germany

Abstract: In the first critical assessment of convergence in financial development dynamics in Africa, we find overwhelming support for integration. The empirical evidence is premised on 11 homogenous panels based on regions(Sub-Saharan and North Africa), income-levels(low, middle, lower-middle and upper-middle), legal-origins(English common-law and French civil-law) and religious dominations(Christianity and Islam). We examine convergence in financial intermediary dynamics of depth, efficiency, activity and size. Findings suggest that countries with small-sized financial intermediary depth, efficiency, activity and size are catching-up with countries with large-sized financial intermediary depth, efficiency, activity and size respectively. We also provide the speeds of convergence and time necessary to achieve a full(100%) convergence. As a policy implication African governments should not relent in structural and institutional reforms.

Keywords: Convergence; Policy Coordination; Banking; Africa (search for similar items in EconPapers)
JEL-codes: F15 F36 F42 O55 P52 (search for similar items in EconPapers)
Date: 2012-01-19
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (33)

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Related works:
Journal Article: African financial development dynamics: big time convergence (2014)
Working Paper: African Financial Development Dynamics: Big Time Convergence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36053

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