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Finance and Democracy in Africa

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  • Asongu Simplice

    (Yaoundé/Cameroun)

Abstract

This paper focuses on how political regimes affect financial development in Africa, contingent on religious-domination, income-levels and colonial-legacies. The main findings are summarized as follows. Authoritarian regimes have a higher propensity to effect policies that favour the development of financial intermediary depth, activity and size. Democracy has important effects on the degree of competition for public offices but less significant effects in comparison with autocracy on policies towards financial development. As a policy implication, once democracy is initiated, it should be accelerated (to edge the appeals of authoritarian regimes) and reap the benefits of level and time hypotheses in financial development.

Suggested Citation

  • Asongu Simplice, 2011. "Finance and Democracy in Africa," Working Papers of the African Governance and Development Institute. 11/020, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:11/020
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    29. Simplice A. Asongu, 2012. "Law and Finance in Africa," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(4), pages 385-408.
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    33. Simplice A., Asongu, 2011. "New financial intermediary development indicators for developing countries," MPRA Paper 30921, University Library of Munich, Germany.
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    37. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers of the African Governance and Development Institute. 11/019, African Governance and Development Institute..
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    Cited by:

    1. Asongu, Simplice & Odhiambo, Nicholas, 2022. "The paradox of governance and natural resource rents in Sub-Saharan Africa," MPRA Paper 119066, University Library of Munich, Germany.
    2. Simplice Asongu, 2014. "Are proposed African monetary unions optimal currency areas? Real, monetary and fiscal policy convergence analysis," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 5(1), pages 9-29, April.
    3. Olufemi Adewale Aluko & Oladapo Fapetu & Julius Oyebanji Ibitoye, 2021. "Do Openness and Democracy Deepen Banking Sector in Sub-Saharan Africa?," Global Business Review, International Management Institute, vol. 22(2), pages 279-289, April.
    4. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Enhancing governance for environmental sustainability in Sub-Saharan Africa," Working Papers 26282, University of South Africa, Department of Economics.
    5. Asongu Simplice, 2012. "Are Proposed African Monetary Unions Optimal Currency Areas? Real and Monetary Policy Convergence Analysis," Working Papers of the African Governance and Development Institute. 12/005, African Governance and Development Institute..
    6. Simplice A. Asongu, 2014. "African financial development dynamics: big time convergence," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 5(2), pages 160-194, July.
    7. Simplice A. Asongu & Joseph Nnanna, 2020. "Governance and the Capital Flight Trap in Africa," Working Papers of the African Governance and Development Institute. 20/024, African Governance and Development Institute..
    8. Arayssi, Mahmoud & Fakih, Ali, 2017. "Finance–growth nexus in a changing political region: How important was the Arab Spring?," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 106-123.
    9. Asongu Simplice, 2012. "How has Mobile Banking Stimulated Financial Development in Africa?," Working Papers of the African Governance and Development Institute. 12/027, African Governance and Development Institute..
    10. Asongu Simplice, 2014. "Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(10), pages 906-922, October.
    11. Simplice A. Asongu, 2013. "Real and monetary policy convergence: EMU crisis to the CFA zone," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 5(1), pages 20-38, April.
    12. Simplice A. Asongu & Jules R. Minkoua N., 2018. "Dynamic openness and finance in Africa," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(4), pages 409-430, May.
    13. Simplice A, Asongu, 2012. "Politics and Consumer Prices in Africa," MPRA Paper 36174, University Library of Munich, Germany.
    14. Asongu Simplice, 2012. "Linkages between Investment Flows and Financial Development: Causality Evidence from Selected African Countries," Working Papers of the African Governance and Development Institute. 12/029, African Governance and Development Institute..
    15. Asongu Simplice, 2012. "Are financial benefits of financial globalization questionable until greater domestic financial development has taken place?," Working Papers of the African Governance and Development Institute. 12/007, African Governance and Development Institute..
    16. Tii N. Nchofoung & Simplice A. Asongu & Vanessa S. Tchamyou & Ofeh M. Edoh, 2022. "Gender political inclusion and democracy in Africa: some empirical evidence," Working Papers 22/051, European Xtramile Centre of African Studies (EXCAS).
    17. Simplice A. Asongu & Cheikh T. Ndour & Judith C. M. Ngoungou, 2023. "The effects of gender political inclusion and democracy on environmental performance: evidence from the method of moments by quantile regression," Working Papers of the African Governance and Development Institute. 23/060, African Governance and Development Institute..
    18. Tii N. Nchofoung & Simplice A. Asongu & Vanessa S. Tchamyou & Ofeh M. Edoh, 2021. "Political inclusion and democracy in Africa: some empirical evidence," Working Papers of the African Governance and Development Institute. 21/091, African Governance and Development Institute..
    19. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    20. Simplice A. Asongu & Nicholas M. Odhiambo, 2024. "Governance quality and trade performance in Sub‐Saharan Africa," World Affairs, John Wiley & Sons, vol. 187(1), pages 78-93, March.
    21. Simplice A. Asongu & Thales P. Yapatake Kossele & Joseph Nnanna, 2021. "Not all that glitters is gold: political stability and trade in Sub-Saharan Africa," Research Africa Network Working Papers 21/005, Research Africa Network (RAN).
    22. Simplice A Asongu, 2013. "How has politico-economic liberalization affected financial allocation efficiency? Fresh African evidence," Economics Bulletin, AccessEcon, vol. 33(1), pages 663-676.

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    More about this item

    Keywords

    Banking; Finance; Politics; Democracy; Development;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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