Political business cycles, bank pricing behaviour and financial inclusion in Africa
This paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002...
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Online Access: | http://dx.doi.org/10.1080/23322039.2020.1762286 |
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doaj-6e104b065c454c4b9bc43545c979aa392021-06-02T10:12:13ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.17622861762286Political business cycles, bank pricing behaviour and financial inclusion in AfricaAbdul Ganiyu Iddrisu0Festus Ebo Turkson1University of AberdeenUniversity of GhanaThis paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002 to 2013. The regression results that ensued suggests first that loan price increases in pre-election and election years. Building on this result and employing various specifications of financial inclusion, the second results suggest that, high bank loan prices in election years tend to increase financial access more, compared to non-election years, and that, high deposit price reduces financial usage but increases financial access in election years, compared to non-election years. By extension, these results have important policy implications for policymakers.http://dx.doi.org/10.1080/23322039.2020.1762286political business cycleselectionbanks’ pricing behaviourfinancial inclusionafrica |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Abdul Ganiyu Iddrisu Festus Ebo Turkson |
spellingShingle |
Abdul Ganiyu Iddrisu Festus Ebo Turkson Political business cycles, bank pricing behaviour and financial inclusion in Africa Cogent Economics & Finance political business cycles election banks’ pricing behaviour financial inclusion africa |
author_facet |
Abdul Ganiyu Iddrisu Festus Ebo Turkson |
author_sort |
Abdul Ganiyu Iddrisu |
title |
Political business cycles, bank pricing behaviour and financial inclusion in Africa |
title_short |
Political business cycles, bank pricing behaviour and financial inclusion in Africa |
title_full |
Political business cycles, bank pricing behaviour and financial inclusion in Africa |
title_fullStr |
Political business cycles, bank pricing behaviour and financial inclusion in Africa |
title_full_unstemmed |
Political business cycles, bank pricing behaviour and financial inclusion in Africa |
title_sort |
political business cycles, bank pricing behaviour and financial inclusion in africa |
publisher |
Taylor & Francis Group |
series |
Cogent Economics & Finance |
issn |
2332-2039 |
publishDate |
2020-01-01 |
description |
This paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002 to 2013. The regression results that ensued suggests first that loan price increases in pre-election and election years. Building on this result and employing various specifications of financial inclusion, the second results suggest that, high bank loan prices in election years tend to increase financial access more, compared to non-election years, and that, high deposit price reduces financial usage but increases financial access in election years, compared to non-election years. By extension, these results have important policy implications for policymakers. |
topic |
political business cycles election banks’ pricing behaviour financial inclusion africa |
url |
http://dx.doi.org/10.1080/23322039.2020.1762286 |
work_keys_str_mv |
AT abdulganiyuiddrisu politicalbusinesscyclesbankpricingbehaviourandfinancialinclusioninafrica AT festuseboturkson politicalbusinesscyclesbankpricingbehaviourandfinancialinclusioninafrica |
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1721405193066643456 |