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Tribalism and Finance

Author

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  • Oasis Kodila-Tedika

    (Kinshasa, DRC)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract

We assess the correlations between tribalism and financial development in 60 countries using data averages from 2000-2010. The tribalism index is used to measure tribalism whereas financial development is measured from perspectives of financial intermediary and stock market developments. The long term finance variable is stock market capitalisation while the short run variable is private and domestic credit. We find that tribalism is negatively correlated with financial development and the magnitude of negativity is higher for financial intermediary development relative to stock market development. The findings are particularly relevant to African and Middle Eastern countries where the scourge of tribalism is most pronounced.

Suggested Citation

  • Oasis Kodila-Tedika & Simplice A. Asongu, 2020. "Tribalism and Finance," Working Papers 20/092, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:20/092
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    More about this item

    Keywords

    Tribalism; Financial Development;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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