Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123565
Authors: 
Asongu, Simplice A.
Year of Publication: 
2012
Series/Report no.: 
AGDI Working Paper WP/12/021
Abstract: 
The goal of this paper is to assess how financial sector competition plays-out in the development of knowledge economy (KE). It contributes at the same time to the macroeconomic literature on measuring financial development and response to the growing field of KE by means of informal sector promotion, micro finance and mobile banking. It suggests a practicable way to disentangle the effects of various financial sectors on different components of KE. The variables identified under the World Bank's four knowledge economy index (KEI) are employed. Three hypotheses based on seven propositions are tested. Results show: (1) the informal financial sector, a previously missing component in the definition of the financial system by the IMF significantly affects KE dimensions; (2) disentangling different components of the existing measurement of the financial system improves dynamics in the KE-finance nexus and; (3) introduction of measures of sector importance provides relevant new insights into how financial sector competition affects KE.
Subjects: 
Financial development
Knowledge Economy
JEL: 
G21
O10
O34
P00
P48
Document Type: 
Working Paper

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