Pre- and post-crisis dynamics of financial globalisation for financial development in Africa

Simplice Asongu, Lieven De Moor () and Vanessa Tchamyou ()
Additional contact information
Lieven De Moor: Vrije Universiteit Brussel, Belgium

No 15/045, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

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. Policy implications are discussed.

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: 26
Date: 2015-11
New Economics Papers: this item is included in nep-afr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/Pre-an ... cial-development.pdf Revised version, 2015 (application/pdf)

Related works:
Working Paper: Pre- and post-crisis dynamics of financial globalisation for financial development in Africa (2015)
Working Paper: Pre- and post-crisis dynamics of financial globalisation for financial development in Africa (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:15/045

Access Statistics for this paper

More papers in Working Papers of the African Governance and Development Institute. from African Governance and Development Institute. Contact information at EDIRC.
Bibliographic data for series maintained by Asongu Simplice ().