Essential Information Sharing Thresholds for Reducing Market Power in Financial Access: A Study of the African Banking Industry

2018

International Finance

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This study investigates whether information sharing channels that are meant to reduce information asymmetry have led to an increase in financial access. The study employs a Generalized Method of Moments technique using data from 53 African countries during the period from 2004 to 2011 to examine this linkage. Information sharing channels are theoretically designed to promote the formal financial sector and discourage the informal financial sector. The study uses two information sharing channels: private credit bureaus and public credit registries. The study found that both information sharing channels have a positive and significant impact on financial access. The study also found that public credit registries complement the formal financial sector to promote financial access. Policy implications are discussed.

Section: Resultssupporting

confidence: 74%

Information asymmetry, financialization, and financial access

2018

International Finance

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“…This feasibility exclusively relies on whether the thresholds are consistent with the data underpinning the empirical exercise. This conception and definition of threshold conforms to the extant literature on the subject, notably: thresholds for favorable results that are relevant to policy makers (Asongu and Odhiambo, 2018;Asongu et al, 2019;Batuo, 2015), conditions for Kuznets and U shapes (Ashraf and Galor, 2013) and CO 2 emission thresholds that are detrimental to inclusive development (Asongu, 2018a).…”

Section: Extension With Policy Thresholdssupporting

confidence: 68%

Economic development thresholds for a green economy in sub-Saharan Africa

Energy Exploration & Exploitation

2019

This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the sub-Saharan Africa for the period 2000–2012. The Generalized Method of Moments is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing gross domestic product growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.

“…Before concluding this paper, it is worthwhile to emphasise that the underlying conception of threshold is consistent with the attendant critical mass literature, notably, thresholds upon which growing environmental degradation has a negative incidence on inclusive development (Asongu, ), initial conditions for rewarding effects (Cummins, ), critical masses for favourable effects (Batuo, ; Roller & Waverman, ), and inflexion points at which information sharing reduces market power for the enhancement of financial access (Asongu, le Roux, & Tchamyou, ).…”

Section: Resultssupporting

confidence: 52%

How enhancing gender inclusion affects inequality: Thresholds of complementary policies for sustainable development

Sustainable Development

2019

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This study investigates how enhancing gender inclusion affects inequality in 42 African countries for the period 2004-2014. The empirical evidence is based on the generalised method of moments. Three inequality indicators are used, namely, the Gini coefficient, Atkinson index, and Palma ratio. The two gender inclusion measurements used include female labour force participation and female employment. The following main findings are established. There are positive net effects on inequality from the enhancement of gender inclusion dynamics. An extended threshold analysis is used to assess critical masses at which further increasing gender inclusion enhances inequality. The established thresholds are as follows: (a) 55.555 "employment to population ratio, 15+, female (%)" for the nexus with the Gini coefficient. (b) 50 "labour force participation rate, female (% of female population ages 15+)" and between 50 and 55 "employment to population ratio, 15+, female (%)", for the Atkinson index. (c) 61.87 "labour force participation rate, female (% of female population ages 15+)" for the Palma ratio. These established thresholds are worthwhile for sustainable development because, beyond the critical masses, policymakers should complement the gender inclusion policy with other measures designed to reduce income inequality. Some complementary measures that can be taken on board beyond the established thresholds could focus on enhancing, inter alia, information and communication technology, infrastructural development, financial inclusion, and inclusive education.