This posting shows similarities in the
wording of the following article by Dr. Douglas Agbetsiafa and the works of
other, earlier published authors:
Agbetsiafa, Douglas
(2006) "Financial Intermediation and Efficacy of Monetary Integration of
the Community States of West Africa.” Southwestern Journal of Economics, Vol.
VIII, No. 11, pp.25-51.
[The Southwestern
Journal of Economics is affiliated with the Southwestern Economics
Association (SWEA). The editor of the journal is Abdul M. Turay. Turay is the co-author of another publication
with Douglas Agbetsiafa: "Differences in Saving and Investment Variability in Selected LAC
Countries." Trends In Modem Business. Academy of Business Administration, February 1995, pp. 352-360].
Douglas Agbetsiafa is Professor of Economics and Chair of the Economics Area at Indiana University South Bend (IUSB). He holds a PhD in Economics from the University of Notre Dame. That PhD also contains wording that is similar to earlier published authors.
Douglas Agbetsiafa is Professor of Economics and Chair of the Economics Area at Indiana University South Bend (IUSB). He holds a PhD in Economics from the University of Notre Dame. That PhD also contains wording that is similar to earlier published authors.
From Agbetsiafa
article, page 24:
… when
bank deposits, private credit and domestic credit indicators are alternatively
used as proxies for financial development, economic growth is found to lead
financial sector development, especially in the West African Economic and
Monetary Zone (WAEMU) states.
Compare
this to:
For example, when financial
development is measured by the ratio of money to income, the direction of
causality runs from financial development to economic growth, but when bank
deposits, private credit and domestic credit ratios are alternatively used as
indicators of financial development, growth is found to lead to financial
development.
[Bottom of page 56]
From Agbetsiafa article, page 24:
In the last decade and a half, the link between
financial intermediation and economic growth has generated a great deal
of interest among academics, policy makers, and economists around the world.
Several studies have addressed the potential link between financial development
and economic growth. However, despite the rapidly growing literature concerning
the role played by the development of financial intermediaries in economic growth
is far from settled.
Compare this to:
…link between financial
intermediation (FI) and economic growth has generated a great deal of interest
among academics, policy makers and economists around the world. Several studies
have addressed the potential links between financial development and economic
growth. However, despite the rapidly growing literature, the debate concerning
the role played by the development of financial intermediaries in economic
growth is far from settled.
http://www.csae.ox.ac.uk/conferences/2004-GPRaHDiA/papers/3m-Aziakpono-CSAE2004.pdf [Bottom or first page/top of second page]
From Agbetsiafa
article, page 25:
In August 2003, the Association of African Central
Bank Governors announced that it would work for a single currency and common
central bank by 2001.
Compare this to:
In August 2003,
the Association of African Central Bank Governors announced that it would work
for a single currency and common central bank by 2021.
http://www.imf.org/external/pubs/ft/fandd/2004/12/pdf/masson.pdf
[Page 9, column 1]
From Agbetsiafa
article, page 25:
The regional economic unions including the ECOW AS
would be an intermediate stage, leading ultimately to their merger, creating a
single African central bank and currency. A plan with such widespread economic
and political consequences throughout the continent deserves careful examination.
Compare this to:
These regional
unions would be an intermediate stage, leading ultimately to their merger,
creating a single African central bank and currency. A plan with such
widespread economic and political consequences throughout the continent
deserves careful examination.
[Page 9; spans end of first and start of second
columns]
From Agbetsiafa
article, page 26:
The failure of the Ecowas integration process to
make significant progress since its inception was one of the motivating factors
behind the "fast track" approach to monetary integration in the West
African region.
Compare this to:
The failure of the ECOWAS
integration process to make significant progress since its inception in 1975
was one of the motivating factors behind the “fast track” approach to monetary
integration in the
sub-region.
http://www.economia.uniroma2.it/Public/YICGG/file/readinglist/3/3_Basel2_China%20(1).pdf [Pages
146-7]
From Agbetsiafa
article, page 26:
It was generally felt that the nonexistence of
parallel and competing monetary arrangements in the sub-region had been a major
factor militating against the movement towards a single monetary zone.
Compare this to:
It was generally felt that
the non-existence of parallel and competing monetary arrangements in the
sub-region had been a major factor militating against the movement towards a
single monetary zone.
http://www.economia.uniroma2.it/Public/YICGG/file/readinglist/3/3_Basel2_China%20(1).pdf [Top
of page 147]
From Agbetsiafa
article, page 26:
Furthermore, the quest for improved macroeconomic
performance in African countries, coupled with the successful launching of the
euro in 1999, has rekindled interest in the establishment of monetary unions in
African Regional Economic Communities.
Compare this to:
The quest for improved
macroeconomic performance in African countries, coupled with the successful
launching of the euro in 1999, has rekindled interest in the establishment of
monetary unions in African Regional Economic Communities.
http://www.uneca.org/docs/Conference_Reports_and_Other_Documents/espd/2003/DiscPaper2003-Munion.pdf [Page V]
From Agbetsiafa
article, page 27:
The combined Gross Domestic Product for the Ecowas
region was estimated at $75.1 billion in 2001. Ecowas economies are at varying
stages of development. Nigeria's economy, the region's largest with a GDP of
$39.5 billion, is larger than the combined GDP of the other Ecowas countries.
While the region's economies grew at a combined rate of 3.4% in 2001, the substantial
external debt of individual states remains one of the region's greatest
challenges. In addition, internal strife has adversely affected economic
performance in several states.
Compare this to:
In 2001, the combined Gross Domestic Product (GDP)
for the ECOWAS region was estimated at $75.1 billion. ECOWAS economies are at
varying stages of development. Nigeria's economy, the region's largest with a
GDP of $39.5 billion, is larger than the combined GDP of the other ECOWAS
countries. While the region's economies grew at a combined rate of 3.4% in
2001, the substantial external debt of individual states remains one of the
region's greatest challenges. Internal strife has adversely affected economic
performance in several states.
[Economic overview/first paragpraph]
From Agbetsiafa
article, page 29:
Ghana's economy grew 4.5 percent in 2002, better
than the 4.2 percent in 2001 and the 3.7 percent in 2000 but well below the
target of 8 percent as outlined in Vision 2020. The robust recovery in gold and
cocoa prices boosted the economy.
Compare this to:
Ghana’s economy grew 4.5% in
2002, better than the 4.2% in 2001 and the 3.7% in 2000, but well below the
target of 8% as outlined in Vision 2020. The robust recovery in gold and
cocoa prices boosted the economy.
http://www.uneca.org/era2003/chap5.pdf [top
of first page]
From Agbetsiafa
article, page 29:
The monetary policy stance improved in 2002, with inflation
declining to 15 percent from 21 percent in 2001, and 40 percent in 2000.
Compare this to:
The monetary policy stance
improved in 2002—with inflation down to 15%, from 21% in 2001 and 40% in 2000.
http://www.uneca.org/era2003/chap5.pdf [Start
of paragraph 3, first page]
From Agbetsiafa
article, page 32:
Panel VARs with a
large number of cross-country observations and relatively few time series
observations can be estimated with recently developed econometric techniques
(see Holtz-Eakin, Newey, Rosen, 1988, Arrelano, and Bond, 1991). Beck, Levine
and Loayza (2000) and Levine, Loayza and Beck (2000) also find that measures of
financial sector
development have a significant causal effect on growth in panel V AR estimates.
Compare this to:
Panel VARs with a large
number of cross country observations and relatively few time series
observations can be estimated with recently developed econometric techniques
(see Holtz-Eakin, Newey and Rosen, 1988 and Arrelano and Bond, 1991). Wachtel
and Rousseau (2000) implement the technique to estimate panel VARs with annual
data and develop Granger causality tests. Beck, Levine and Loayza (2000) and
Levine, Loayza and Beck (2000) also find that measures of financial sector
development have a significant causal effect on growth in panel VAR estimates.
From Agbetsiafa
article, page 32:
Original studies of the finance growth relationship
with aggregate credit measures were quickly followed by studies of the influence
of the equity market on growth.
Compare this to:
The original studies of the
finance growth relationship with aggregate credit measures were quickly
followed by studies of the influence of the equity market on growth.
From Agbetsiafa
article, page 32:
For example, Atje and Jovanovic (1993) constructed
a cross-country panel for 1980s and show that trading volume has a strong
influence on growth after controlling for lagged investment while bank credit
does not. Levine and Zervos (1996, 1998) introduce equity market measures to
the standard growth-finance cross-section specifications.
Compare this to:
Atje and Jovanovic (1993)
constructed a cross-country panel for the 1980s and show that trading volume
has a strong influence on growth after controlling for lagged investment while
bank credit does not. Demirguc-Kunt and Levine (1996) provide a descriptive
investigation. Levine and Zervos (1996, 1998) introduce equity market measures
to the standard growth-finance cross-section specifications discussed earlier.
From Agbetsiafa
article, page 32:
Results show that the development of a liquid and
highly capitalized equity market increases growth.
Compare this to:
The results indicate that the
development of a liquid and highly capitalized equity market increases growth.
From Agbetsiafa
article, page 32:
There is another body of work that focuses on the
relationship between economic
growth and the quality of the financial sector environment.
Compare this to:
There is a body of work that
focuses on the relationship between economic growth and the quality of the
financial sector environment.
From Agbetsiafa
article, page 32:
For example, La Porta, Lopez-de-Silanes and Shleifer
(2000) examine the effect of bank ownership on economic growth. They
consistently find that higher initial government bank ownership has a negative
impact on real per capita growth rates. More specifically, a 10 percent point
increase in the proportions of assets of the largest banks owned by the
government is associated with a decline in the annual growth rate of about 0.2
percent.
Compare this to:
For example, La Porta,
Lopez-de-Silanes and Shleifer (2001) examine the effect of bank ownership on
economic growth with the standard panel framework introduced earlier. They
consistently find that higher initial government bank ownership has a negative
impact on real per capita growth rates. A 10 percentage point increase in the
proportions of assets of the largest banks owned by the government is
associated with a decline in the annual growth rate of about 0.2 percent.
From Agbetsiafa
article, pages 32-33:
Several recent papers relate the legal environment
for the financial sector to economic growth. La Porta et. al. (1998); Levine
(1999, and 2000) show that legal systems have different approaches to
creditor-debtor relationships that could be relevant to the performance of the
financial system and thus, economic development. The exogenous characteristics
can be used as instruments to improve econometric estimates of the basic growth
finance linkage.
Compare this to:
Several recent papers relate
the legal environment for the financial sector to economic growth. Part of the
motivation for these inquiries is econometric. The origins of the legal system
(e.g. English common law or French civil law) are a completely exogenous
variable determined by accidents of history (and colonialism). However, the
legal systems have different approaches to creditor-debtor relationships that could
be relevant to the performance of the financial system and thus, economic
growth (La Porta et. al. (1998); Levine (1999 and 2000)). The exogenous
characteristics (legal origins) can be used as instruments to improve
econometric estimates of the basic growth-finance relationships.
From Agbetsiafa
article, page 33:
For example, they found little evidence supporting
the hypothesis of a unidirectional causation from finance to growth. Only three
cases show this pattern of causation. Most of the other cases show evidence of
bi-directional causation or no causality at all. Moreover, results differ
across countries; thus suggesting that non-homogeneous economic and financial systems
cannot be "averaged" as the cross section methodology does.
Compare this to:
They found little evidence
supporting the hypothesis of a unidirectional causation from finance to growth.
Only three cases show this pattern of causation.9 The other way of causation
seems to be more frequent (9 out of 16 countries for LM variable; 6 out of 16
for LD variable). Most of the other cases show evidence of bi-directional
causation or no causality at all. Moreover results differ across countries;
this suggests that non-homogeneous economic and financial systems cannot be
`averaged` as the cross section methodology does.
Andrea Morrison, Financial Development and Growth: Evidence from Latin
America, CESPRI Working Papers,
Centre for Research on Innovation and Internationalisation, Universita' Bocconi,
Milano, Italy, page 10.
From Agbetsiafa
article, pages 33-34:
Other criticisms have been directed at the
interpretation of cross-country results (Arestis and Demetriades, 1996;
Demetriades and Hussein, 1996). They oppose the cross section approach for two
main reasons. First, it seems that financial indicators are correlated across
time, therefore, past values can be considered as good proxies for
contemporaneous ones. This means, as Demetriades and Hussein (1996) pointed out
that even though initial values of financial indicators are correlated with
growth …
Compare this to:
Other criticisms have been
addressed to the interpretation of cross-country results (Arestis and
Demetriades, 1996; Demetriades and Hussein, 1996). At least two main criticisms
can be brought. Firstly, it seems that financial indicators are correlated
across time, therefore past value can be considered as good proxies for
contemporaneous ones. This means, as Demetriades and Hussein pointed out
(1996), that even though initial values of financial indicators are correlated
with growth
Andrea Morrison, Financial Development and Growth: Evidence from Latin
America, CESPRI Working Papers,
Centre for Research on Innovation and Internationalisation, Universita' Bocconi,
Milano, Italy, pp.10-11.
From Agbetsiafa
article, page 34:
Secondly, causality relationship is an average
result across all countries included in the sample. As such, nothing can be
inferred about individual countries. This also means that changing the sample
size can affect the estimated results. It is clear that any policy implications
drawn from results based on cross country analyses are not helpful, and can
indeed be misleading because countries in the sample are not homogenous in terms
of economic and financial structure.
Compare this to:
Secondly, causality
relationship is an average result across all the countries included in the
sample.
Nothing can be inferred about
single countries. This also means that expanding or reducing the sample can
affect the final result. In term of policy, these cross country analyses are
clearly not helpful and can be misleading because countries in the sample are
not homogenous in terms of economic and financial structure.
Andrea Morrison, Financial
Development and Growth: Evidence from Latin America, CESPRI Working
Papers, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano,
Italy, page 11.
From Agbetsiafa
article, page 34:
Blah and Tang (2003) using both time-series
country-specific, and cross-country methodologies provided further evidence on
the issue for 75 countries, majority of which are developing countries with emerging
market economies.
Compare this to:
Motivated by these conflicting
results, Bloch and Tang (2003) using both time-series country-specific and
cross-country methodologies provided further evidence on the issue for 75
countries. The majority of those studied are developing countries with emerging
market economies.
From Agbetsiafa
article, page 47:
Monetary arrangements alone cannot provide
solutions to the profound problems facing many African countries.
Compare
this to:
Monetary arrangements cannot
provide solutions to the profound development problems facing many African
countries.
From Agbetsiafa
article, page 47:
Economic growth and prosperity depend on ultimately
on how well the real economy works. But monetary arrangements are part of the foundations
for the real economy. The major contribution that monetary policy can make to
conditions for sustainable growth is to secure and maintain price stability.
Compare this to:
Growth and
prosperity depend ultimately on how well the real economy works. But monetary
arrangements are part of the foundations for the real economy. The prime
contribution that monetary policy can make to conditions for sustainable growth
is to secure and maintain price stability.
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb0003.pdf [Page 294, in Concluding remarks]
From Agbetsiafa
article, page 47:
In their regional integration efforts, all fifteen
countries should place very high priority on the reform of their financial
systems, and a credible commitment to price stability in order to insulate
public financing decisions from large inflation uncertainty, and high inflation
risk premia in borrowing costs-to the benefit of households, businesses, and governments.
Compare this to:
A credible
commitment to price stability reduces both kinds of risk. More broadly it
relieves financing decisions from the plague of large inflation uncertainty,
and diminishes inflation risk premia in borrowing costs—to the benefit of
households, businesses and government.
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb0003.pdf [Page 290, column 2]
From Agbetsiafa
article, page 48:
Perhaps, monetary union among these countries may help
to contain the costs of high and uncertain inflation if it brings price
stability to countries that would otherwise find that harder to secure and
maintain.
Compare this to:
Monetary union
helps to contain the costs of high and uncertain inflation if it brings price
stability to countries that would otherwise find that harder to secure and
maintain.
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb0003.pdf
[Page.290, last paragraph on right, first sentence]
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