Hist Inst Africa.pdf (512.19 kB)
Historical institutional determinants of financial system development in Africa
journal contribution
posted on 2018-11-06, 16:10 authored by Chukwunonyeo O. Emenalo, Francesca Gagliardi, Geoff HodgsonThe literature on the determinants of cross-country variation in financial system development identifies historical institutional factors, mostly rooted in colonial effects, as key causes. Using a sample of 39 African former European colonies for 2006–11, this paper investigates the extent to which the historical institutional determinants identified by legal origins, disease endowment, religion-based and ethnic fractionalisation theories explain current differences in financial system development across Africa. While most existing research focuses only on one financial system development dimension, namely financial system depth, this article considers also financial system access. The results do not support any of the above theories when depth measures are used, while three of them (legal origins, disease endowment and ethnic fractionalisation theories) are validated when using access measures. This suggests that in Africa financial system depth and access do not have common historical institutional determinants, pointing to the need for greater fine tuning of prevalent theories and empirical measures.
History
School
- Loughborough University London
Published in
Journal of Institutional EconomicsVolume
14Issue
02Pages
345 - 372Citation
EMENALO, C.O., GAGLIARDI, F. and HODGSON, G.M., 2018. Historical institutional determinants of financial system development in Africa. Journal of Institutional Economics, 14 (2), pp.345-372.Publisher
Cambridge University Press © Millennium Economics LtdVersion
- AM (Accepted Manuscript)
Acceptance date
2017-01-23Publication date
2017-02-20Notes
This article has been published in a revised form in Journal of Institutional Economics https://doi.org/10.1017/S1744137417000042. This version is free to view and download for private research and study only. Not for re-distribution, re-sale or use in derivative works. © Millennium Economics Ltd.ISSN
1744-1374eISSN
1744-1382Publisher version
Language
- en
Administrator link
Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC