Information Asymmetry and Financial Dollarization in Sub-Saharan Africa

African Journal of Economic and Management Studies, 9(2), pp.231-249 (May, 2018)

23 Pages Posted: 3 Dec 2016 Last revised: 9 Jun 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Ibrahim Raheem

University of Kent - Department of Economics

Vanessa S. Tchamyou

African Governance and Development Institute

Date Written: Novemeber 2016

Abstract

Financial dollarization in Sub-Saharan Africa is the most persistent compared to other regions of the world. This study complements the existing scant literature on dollarization in Africa by assessing the role of information sharing offices (public credit registries and private credit bureaus) on financial dollarization in 26 countries of SSA for the period 2001-2012. The empirical evidence is based on Ordinary Least Squares (OLS) and Generalised Method of Moments (GMM). The findings show that information sharing offices (which are designed to reduce information asymmetry) in the banking industry are a deterrent to dollarization. Policy implications are discussed.

Keywords: Dollarization; Openness; Information Asymmetry; Africa

JEL Classification: E31; E41; G20; O16; O55

Suggested Citation

Asongu, Simplice and Raheem, Ibrahim and S. Tchamyou, Vanessa, Information Asymmetry and Financial Dollarization in Sub-Saharan Africa (Novemeber 2016). African Journal of Economic and Management Studies, 9(2), pp.231-249 (May, 2018). Available at SSRN: https://ssrn.com/abstract=2878545 or http://dx.doi.org/10.2139/ssrn.2878545

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Ibrahim Raheem

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

Vanessa S. Tchamyou

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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