Financial Development and Growth in Anglophone and Francophone Sub-Saharan Africa: Does Colonial Legacy Matter? by Djeto Assane* University of Nevada Las Vegas



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Table 2 World Bank Financial Structure Database, 1960 – 1997

Percents of Possible Entries Reported:

Anglophone and Francophone SSA Countries

Anglophone

Countries

10 Basic Financial Indicators

27 Other Financial Indicators

All 37 Indicators

Francophone

Countries

10 Basic Financial Indicators

27 Other Financial Indicators

All 37 Indicators

Botswana
Gambia
Ghana
Kenya
Malawi
Nigeria
Sierra Leone
Sudan
Tanzania
Uganda
Zambia
Zimbabwe

All Anglophone


23.2%
40.0%
44.5%
43.2%
25.5%
46.3%
43.4%
47.9%
8.4%
22.1%
20.0%
23.4%
32.3%


6.6%
2.9%
6.9%
15.1%
10.9%
16.8%
5.1%
3.7%
0.5%
4.1%
3.9%
19.5%
8.0%

11.1%
12.9%
17.1%
22.7%
14.9%
24.8%
15.4%
15.6%
2.6%
9.0%
8.3%
20.6%
14.6%

Benin
Burkina Faso
Cameroon
C.A.R.
Chad
Congo
Côte d’Ivoire
Gabon
Mali
Niger
Senegal
Togo

All Francophone


15.8%
25.3%
38.4%
23.9%
21.8%
46.3%
42.1%
40.8%
20.0%
40.0%
36.6%
35.8%
32.2%

2.0%
1.5%
4.9%
1.5%
1.2%
4.4%
12.6%
3.2%
2.7%
2.8%
4.2%
2.8%
3.6%

5.8%
7.9%
13.9%
7.5%
6.8%
15.7%
20.6%
13.4%
7.4%
12.9%
12.9%
11.7%
11.4%

Basic Indicators of Financial Development

Central Bank Assets to Total Financial Assets Central Bank Assets to GDP

Deposit Money Bank Assets to Total Financial Assets Deposit Money Bank Assets to GDP

Other Financial Institution Assets to Total Financial Other Financial Institution Assets to GDP

Deposit Money Bank v. Central Bank Assets Private Credit by Deposit Money Banks to GDP

Liquid Liabilities to GDP Private Credit by Banks & Other Financial Inst. to GDP



Sources: World Bank, Financial Structure and Economic Development Database, www.worldbank.org/research/projects/finstructure/pdf_files/struct.exe and author’s tabulation


Table 3. Financial Development and Legal Origin, 1965 – 2000

Anglophone and Francophone SSA






Financial Development Indicator

Quasi-liquid

Liabilities

(% of GDP)


QLLY

Liquid


Liabilities

(% of GDP)


LLY

M1

(% of GDP)


M1

Credit by

Banking Sector

(% of GDP)

BANK

Total Credit to Private Sector

(% of GDP)


PRIVY

Claims on Priv.Sector/ [Claims on Priv + Govt]

PRIVATE

Panel A: OLS. Dependent variable is logarithm of financial development indicator in each period.

C

Francophone



Log (Real GDP

PC, Lagged)


Observations

Prob. (F – Test)

Adjusted R2

-.953


(.250)
-1.18

(.000)
.449

(.000)
154

.000


.321

2.24


(.000)
-.207

(.003)
.117

(.043)
155

.005


.055

2.58


(.014)
.316

(.074)
-.037

(.800)
154

.199


.008

1.42


(.055)
-.283

(.020)
.239

(.024)
150

.018


.040

.254


(.682)
.341

(.001)
.285

(.001)
155

.000


.141

-1.57


(.019)
.695

(.000)
.095

(.321)
152

.000


.244

Panel B: GLS/Random Effects.

Dependent variable is growth of financial development indicator from its value in prior period

C

Francophone



Log (Real GDP

PC, Lagged)


Log (Lagged Indicator)
Observations

Prob. (F – Test)

R2

.094


(.817)
-.223

(.007)
.093

(.116)
-.275

(.000)
149

.000

.331



1.52

(.000)
-.199

(.001)
.065

(.174)
-.608

(.000)
150

.000


.486

2.98


(.000)
.147

(.087)
-.068

(.270)
-.997

(.000)
149

.000

.978



.497

(.365)
-.348

(.000)
.206

(.010)
-.565

(.000)
142

.000


.446

.191


(.673)
.053

(.513)
.086

(.191)
-.327

(.000)
150

.000

.186



-1.80

(.046)
.096

(.625)
.217

(.089)
-.373

(.000)
147

.000


.056

P – values of estimated regression coefficients are in parentheses.

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