Technology-Driven Information Sharing and Conditional Financial Development in Africa

Information Technology for Development, 25(4), pp. 630-659 (November, 2019).

40 Pages Posted: 10 Apr 2017 Last revised: 17 Nov 2019

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

John Chukwudi Anyanwu

African Development Bank

Vanessa S. Tchamyou

African Governance and Development Institute

Date Written: January 2, 2017

Abstract

Information technology is increasingly facilitating mechanisms by which information asymmetry between lenders and borrowers in the financial sector can be reduced in order to enhance financial access for human and economic development in developing countries. We examine conditional financial development from ICT-driven information sharing in 53 African countries for the period 2004-2011, using contemporary and non-contemporary quantile regressions. ICT is measured with mobile phone penetration and internet penetration whereas information sharing offices are public credit registries and private credit bureaus. The following findings are established. First, there are positive effects with positive thresholds from ICT-driven information sharing on financial depth (money supply and liquid liabilities) and financial activity (at banking and financial system levels). Second, for financial intermediation efficiency, the positive effects from mobile-driven information sharing are apparent exclusively in certain levels of financial efficiency. Third, with regard to financial size, mobile-driven information sharing is positive with a negative threshold, whereas, internet-driven information sharing is positive exclusively among countries in the bottom half of financial size. Positive thresholds are defined as decreasing negative or increasing positive estimated effects from information sharing offices and vice-versa for negative thresholds. Policy implications are discussed.

Keywords: Information Sharing; Financial Development; Quantile regression

JEL Classification: G20; G29; O16; O55; C52

Suggested Citation

Asongu, Simplice and Anyanwu, John Chukwudi and S. Tchamyou, Vanessa, Technology-Driven Information Sharing and Conditional Financial Development in Africa (January 2, 2017). Information Technology for Development, 25(4), pp. 630-659 (November, 2019)., Available at SSRN: https://ssrn.com/abstract=2949600

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

John Chukwudi Anyanwu

African Development Bank ( email )

Rue Joseph Anoma
Abidjan, Ivory Coast 01 BP 1387
Ivory Coast (Cote D'ivoire)

Vanessa S. Tchamyou

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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