Tribalism and Financial Development

African Governance and Development Institute WP/15/018

18 Pages Posted: 31 May 2015

See all articles by Oasis Kodila-Tedika

Oasis Kodila-Tedika

University of Kinshasa - Department of Economics

Simplice Asongu

African Governance and Development Institute

Date Written: May 30, 2015

Abstract

We assess the correlations between tribalism and financial development in 123 countries using data averages from 2000-2010. The tribalism index is used to measure tribalism whereas financial development is measured from perspectives of financial intermediary and stock market developments. The long-term variable is stock market capitalisation while short-run indicators include: private and domestic credits. We find that tribalism is negatively correlated with financial development and the magnitude of negativity is higher for financial intermediary development relative to stock market development. The findings are particularly relevant to African and Middle Eastern countries where the scourge is most pronounced.

Keywords: Tribalism; Financial Development

JEL Classification: E62; H11; H20; G20; O43

Suggested Citation

Kodila-Tedika, Oasis and Asongu, Simplice, Tribalism and Financial Development (May 30, 2015). African Governance and Development Institute WP/15/018. Available at SSRN: https://ssrn.com/abstract=2612429 or http://dx.doi.org/10.2139/ssrn.2612429

Oasis Kodila-Tedika (Contact Author)

University of Kinshasa - Department of Economics ( email )

Kinshasa
Democratic Republic of the Congo

Simplice Asongu

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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