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Colonial coinage and financial development

Author

Listed:
  • Dombou T., Dany R.
  • Tanga T., Achille
  • Tchoffo, Rodrigue
  • Kouladoum, Jean-Claude
  • Tchakounté, Josephine
  • Djekonbe, Djimoudjiel
  • Vasegmi, Carole

Abstract

Until the 21st century, Africa remains the only region in the world where there are countries whose currency is derived from the colonial system. Very far from political and geostrategic considerations, the question has always been asked in order to know the effect of this lack of monetary sovereignty on the evolution of economic activity. Therefore, this study investigates the relationship between Colonial coinage and financial development by applying Generalised Method of Moments. The importance of this approach, is to correct heterogeneity and endogeneity problems. The sample consist of 48 African countries data over 10 years. This study findings are like-minded with those of economic literature around the law, finance and endowment theory. They suggest that in sub-Saharan Africa, the quality of institutions has a very large influence on access to domestic credit. Moreover, the main enclave for the development of the financial system due to colonial coinage is the sluggish stability of the latter colonial coinage in Africa.

Suggested Citation

  • Dombou T., Dany R. & Tanga T., Achille & Tchoffo, Rodrigue & Kouladoum, Jean-Claude & Tchakounté, Josephine & Djekonbe, Djimoudjiel & Vasegmi, Carole, 2017. "Colonial coinage and financial development," MPRA Paper 83331, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:83331
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    References listed on IDEAS

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    More about this item

    Keywords

    Colonial coinage; Money; Financial development; Institutions.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G2 - Financial Economics - - Financial Institutions and Services
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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