The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality

By Vanessa S. Tchamyou. Journal of African Business, 2019

453 citations recorded by the source corpus.

ABSTRACT This study examines the role of information sharing in modulating the effect of financial access on income inequality in 48 African countries for the period 2004–2014. Information sharing is proxied with private credit bureaus and public credit registries. All dynamics of financial development are taken into account, namely: depth (money supply and liquid liabilities), efficiency (at banking and financial system levels), activity (from banking and financial system perspective) and size. The empirical exercise is based on interactive Generalised Method of Moments. It can be established from the findings that: first, a threshold of 18.072 percentage coverage of public credit registries is needed to counteract the unconditional positive effect of banking system efficiency. Secondly, on the role of private credit bureaus in financial depth, both the unconditional and the conditional effects are negative, implying a negative synergy. Overall, the findings show that, contingent on the type of financial development dynamic, credit registries broadly play their theoretical role of decreasing financing constraints in order to ultimately reduce inequality.

Subfields: Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/92f994d6bb38617a32a9c9c34a05a6fe219868a2

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Citations in the corpus

Education, lifelong learning, inequality and financial access: evidence from African countries (2020, methodology): “In accordance with recent literature, we control for factors that may have a potential impact on income inequality, namely: GDP per capita growth, remittances and political stability (Beck et al., 2007; Tchamyou, 2017b).”
Inequality and gender economic inclusion: The moderating role of financial access in Sub-Saharan Africa (2020, methodology): “On the one hand, the variables have been used in contemporary inclusive development literature (see Anyanwu, 2011; Meniago & Asongu, 2018; Asongu & Odhiambo, 2019c; Tchamyou, 2019, 2020).”
The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa (2019, methodology): “We control for factors which could potentially impact income inequality and economic growth, notably: financial depth; political stability and remittances (Demirguc-Kunt et al., 2017; Tchamyou, 2019a).”
Inequality, finance and renewable energy consumption in Sub-Saharan Africa (2021, unknown): “In this case, the correlation coefficient between the level and first difference series should be sufficiently high, notably, above 0.800, owing to the rule of thumb threshold documented in contemporary GMM-centric literature (Tchamyou, 2019a, 2020).”