Finance and Democracy in Africa

Institutions and Economies, 6(3), pp. 92-118 (2014).

32 Pages Posted: 9 Sep 2014 Last revised: 1 Apr 2015

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: December 8, 2011

Abstract

This paper focuses on how political regimes affect financial development in Africa, contingent on religious-domination, income-levels and colonial-legacies. The main findings are summarized as follows. Authoritarian regimes have a higher propensity to effect policies that favour the development of financial intermediary depth, activity and size. Democracy has important effects on the degree of competition for public offices but less significant effects in comparison with autocracy on policies towards financial development. As a policy implication, once democracy is initiated, it should be accelerated (to edge the appeals of authoritarian regimes) and reap the benefits of level and time hypotheses in financial development.

Keywords: Banking; Finance; Politics; Democracy; Development

JEL Classification: E40; E50; O10; P16; P50

Suggested Citation

Asongu, Simplice, Finance and Democracy in Africa (December 8, 2011). Institutions and Economies, 6(3), pp. 92-118 (2014). . Available at SSRN: https://ssrn.com/abstract=2493177 or http://dx.doi.org/10.2139/ssrn.2493177

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
54
Abstract Views
312
rank
393,325
PlumX Metrics