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Improving financial access in Africa: insights from information sharing and financial sector development

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  • Simplice Asongu

    (Yaoundé/Cameroun)

Abstract

The study investigates interactions between information sharing offices, the coexistence of financial sub-systems and financial access. The empirical evidence is based on Quantile regressions in order to articulate countries with low, intermediate and high levels of financial access. The scope of the study is on 53 African countries for the period 2004-2011. The following main results are established. First, the positive association between “information sharing offices (ISOs)” and “formal financial sector development” consistently increases with improvements in initial levels of credit access. Second, the negative linkage between ISOs and “informal financial sector development” consistently decreases with increasing levels of credit access. In summary, we establish that the positive complementarity of ISOs and financial formalization is an increasing function of financial activity (or access to credit) whereas the negative complementarity of ISOs and financial informalization is a decreasing function of financial activity.

Suggested Citation

  • Simplice Asongu, 2017. "Improving financial access in Africa: insights from information sharing and financial sector development," Working Papers of the African Governance and Development Institute. 17/033, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:17/033
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    Cited by:

    1. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "At what levels of financial development does information sharing matter?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-30, December.
    2. Tchamyou, Vanessa S. & Erreygers, Guido & Cassimon, Danny, 2019. "Inequality, ICT and financial access in Africa," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 169-184.
    3. Simplice Asongu & Nicholas Odhiambo, 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers of the African Governance and Development Institute. 17/046, African Governance and Development Institute..
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "The Mobile Phone, Information Sharing, and Financial Sector Development in Africa: a Quantile Regression Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1234-1269, September.
    5. Asongu, Simplice A., 2017. "Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 103-114.
    6. Simplice A. Asongu & John C. Anyanwu & Vanessa S. Tchamyou, 2019. "Technology-driven information sharing and conditional financial development in Africa," Information Technology for Development, Taylor & Francis Journals, vol. 25(4), pages 630-659, October.
    7. Idris A. Abdulqadir & Simplice A. Asongu, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," Research Africa Network Working Papers 21/014, Research Africa Network (RAN).
    8. Opeyemi, Akinyemi & Uchenna, Efobi & Simplice, Asongu & Evans, Osabuohein, 2019. "Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries," Energy Policy, Elsevier, vol. 132(C), pages 490-498.
    9. Simplice A. Asongu & Jacinta C. Nwachukwu, 2019. "ICT, Financial Sector Development and Financial Access," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 465-490, June.
    10. Simplice A. Asongu & Mushfiqur Rahman & Richard Adu-Gyamfi & Raufhon Salahodjaev, 2022. "Tourism management synergies in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 22/059, African Governance and Development Institute..
    11. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    12. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Fuel Exports, Aid and Terrorism," Research Africa Network Working Papers 17/016, Research Africa Network (RAN).
    13. Simplice A. Asongu & Paul N. Acha-Anyi, 2017. "ICT, conflicts in financial intermediation and financial access: evidence of synergy and threshold effects," Netnomics, Springer, vol. 18(2), pages 131-168, December.
    14. Simplice Asongu & Jacinta Nwachukwu, 2018. "Bank size, information sharing and financial access in Africa," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 14(2), pages 188-209, February.
    15. Ofori, Isaac Kwesi & Asongu, Simplice A., 2021. "ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 107757, University Library of Munich, Germany.
    16. Ma, Yu & Zhang, Tingting & Qian, Wenyu & Wei, Danqi, 2022. "Financial development, demographic changes, and the growth of the non-hydro renewable energy Industry—An empirical test based on R&D and financing costs," Renewable Energy, Elsevier, vol. 185(C), pages 217-229.
    17. Joseph I. Uduji & Elda N. Okolo-Obasi & Simplice A. Asongu, 2018. "The impact of e-wallet on informal farm entrepreneurship development in rural Nigeria," Working Papers of the African Governance and Development Institute. 18/047, African Governance and Development Institute..

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    More about this item

    Keywords

    Information Asymmetry; Financialization; Financial Access;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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