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Michel C Samba and Arthur S Mveng
''Asymmetry of information and financial development: Evidence from middle income countries''
( 2020, Vol. 40 No.2 )
This study investigates whether information disclosure that is supposed to reduce information asymmetry enhances financial development. The study employs a Dynamic Common Correlated Mean group technique with data from 69 middle income countries for the period 2004-2015 to examine this relationship. Public credit registries are used as a measure for information asymmetry reduction whereas financial depth and financial access are proxies of financial development. Our results show that Information shared by public credit registries has a substantial positive impact on financial depth as well as on financial access. Therefore, governments in middle income countries should encourage and consolidate public information sharing offices because they are necessary in enhancing the development of the financial system.
Keywords: Information sharing, Dynamic Common Correlated Mean group, Financial development, Middle income countries
JEL: G2 - Financial Institutions and Services: General
C1 - Econometric and Statistical Methods: General
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Manuscript Received : Dec 24 2019 Manuscript Accepted : Apr 15 2020

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