Information asymmetry, financialization, and financial access

Economic Analysis and Policy

Nnanna²,

Acha-Anyi

2020

Self Cite

This research complements the extant literature by establishing inequality critical masses that should not be exceeded in order for financial access to promote gender parity inclusive education in Sub-Saharan Africa. The focus is on 42 countries in the sub-region and the data is for the period 2004-2014. The estimation approach is the Generalized Method of Moments. When remittances are involved in the conditioning information set, the Palma ratio should not exceed 6.000 in order for financial access to promote gender parity inclusive "primary and secondary education" and the Atkinson index should not exceed 0.695 in order for financial access to promote inclusive tertiary education. However, when the internet is involved in the conditioning information set, it is established that in order for financial access to promote inclusive primary and secondary education, the: (i) Gini coefficient should not exceed 0.571; (ii) Atkinson index should not be above 0.750 and (iii) Palma ratio should be maintained below 8.000. Irrespective of variable in the conditioning information set, what is apparent is that inequality decreases the incidence of financial access on inclusive education. Hence, a common policy measure is to reduce inequality in order to promote inclusive education using the financial access mechanism. Policy implications are discussed in the light of Sustainable Development Goals.

Section: Theoretical Underpinnings: Inequality Financial Access and mentioning

confidence: 81%

Finance, inequality and inclusive education in Sub-Saharan Africa

Economic Analysis and Policy

Nnanna²,

Acha-Anyi

2020

Self Cite

“…In accordance with recent financial development literature, there are two main contending theories surrounding the impact of financial access on inclusive development (Tchamyou et al, 2019a). While a strand maintaints that financial development is fundamental in promoting economic prosperity and mitigating inequality, another strand of literature is of the position that collateral requirements, transaction costs and asymmetric information can substantially curtail financial access to the poor factions of the population (Asongu & Odhiambo, 2018b).…”

Section: Theoretical Underpinningsmentioning

confidence: 91%

Inclusive education for inclusive economic participation: the financial access channel

Nnanna²,

Acha-Anyi

2020

Purpose The purpose of this study is to assess how inclusive education affects inclusive economic participation through the financial access channel. Design/methodology/approach The focus is on 42 sub-Saharan African countries with data for the period 2004-2014. The empirical evidence is based on the generalised method of moments. Findings The following findings are established. First, inclusive secondary education moderates financial access to exert a positive net effect on female labour force participation. Second, inclusive “primary and secondary school education” and inclusive tertiary education modulate financial access for a negative net effect on female unemployment. Third, inclusive secondary education and inclusive tertiary education both moderate financial access for an overall positive net effect on female employment. To provide more gender macroeconomic management policy options, inclusive education thresholds for complementary policies are provided and discussed. Originality/value Policy implications are discussed in the light of challenges of economic development in the sub-region and sustainable development goals.

“…Private credit incentives and measures in the fight against excess liquidity are essential to address the substantially documented concerns of surplus liquidity (Saxegaard 2006;Triki and Gajigo 2014;Asongu and Odhiambo 2018b;Tchamyou 2019b). This would require the consolidation of information sharing offices or credit bureaus that are required to mitigate information asymmetry between lenders and borrowers in the African banking industry (Barth et al 2009;Singh et al 2009;Triki & and Gajigo 2014;Tchamyou and Asongu 2017;Boateng et al 2018;Kusi and Opoku-Mensah 2018;Kusi et al 2017).…”

Section: Economic Incentivesmentioning

confidence: 99%

Building Knowledge-Based Economies in Africa: A Systematic Review of Policies and Strategies

Odhiambo

2019

SSRN Journal

Compared to other regions of the world, Africa is lagging in its drive toward knowledgebased economies. This study systematically reviews the literature in order to highlight the policies and strategies with which African countries can accelerate their current drive towards building knowledge-based economies. These are discussed in terms of three pillars of the World Bank's knowledge economy framework. They are the indices for: (i) education and skilled population, (ii) information and communication technology and (iii) economic incentives and institutional regime. JEL Classification: O10; O30; O38; O55; O57 Keywords: Knowledge economy; Development; Africa knowledge economy policies and strategies are structured along three main pillars of the World Bank's knowledge economy index: education and skilled population, economic incentives and institutional regime and, information and communication technology (ICT).The rest of the study is organised in the three main dimensions of the World Bank's Knowledge Economy Index. The methodology of the systematic review is provided in Section 2. Section 3 and Section 4 are focused respectively on education and information and communication technology. Section 5 discusses economic incentives and institutional regime.2 It is important to note that the historic route set by Japan has paved the way for the Newly Industrialised Economies of Asia (Taiwan, South Korea, Singapore and Hong Kong) including China and Malaysia. These nations have been witnessing a tremendous progress from post-industrialisation 'product-based economies' to the era of 'knowledge-based economies'.