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Article
Publication date: 3 April 2017

Ibrahim D. Raheem and Mutiu Abimbola Oyinlola

The study seeks to examine the role of financial development (FD) in the Feldstein–Horioka (FH) puzzle. The novelty of this study is based on the fact that the measures of…

Abstract

Purpose

The study seeks to examine the role of financial development (FD) in the Feldstein–Horioka (FH) puzzle. The novelty of this study is based on the fact that the measures of FD are expanded to account for the qualitative nature of the financial sector (“better finance”).

Design/methodology/approach

The study used annual dataset for 37 countries in sub-Saharan Africa (SSA) for the period 1999 through 2010 and relied on the system generalised method of moments (GMM) technique, which takes accounts of endogeneity-related issues.

Findings

The estimated FH coefficients ranged between 0.419 and 0.720. The qualitative measures of FD have higher FH coefficient relative to the traditional or quantitative measure of FD (“more finance”). Hence, improvement in both the quantity and quality of the financial sector might be helpful in the mobilization, distribution and utilization of savings for investment purposes within these economies. The high FH coefficients obtained suggest that the FH puzzle does not hold in the SSA region.

Practical implications

Policymakers should formulate and design policies that would seek to ensure the development of the financial sector both in terms of quantity and quality. While taking this into consideration, special attention should be devoted to the qualitative measure of finance.

Originality/value

The study extends the work of Adeniyi and Egwaikhide (2013) by providing different and, possibly better proxies for FD to capture the efficiency and the qualitative nature of the financial system. This crux of the study serves as the value addition to the literature, as no other study the authors are aware of, has considered the importance of “better finance” indicators in the saving – investment nexus investigation.

Details

Journal of Financial Economic Policy, vol. 9 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 7 September 2015

Kazeem Bello Ajide, Ibrahim D. Raheem and Oluwatosin Adeniyi

– The purpose of this paper is to empirically examine the role of institutions on the remittances–output growth volatility relationship.

Abstract

Purpose

The purpose of this paper is to empirically examine the role of institutions on the remittances–output growth volatility relationship.

Design/methodology/approach

The data set of this paper is limited to 71 remittances recipient countries. In an attempt to deal with endogeneity issues, the paper adopts the use of system generalised method of moment (GMM).

Findings

First, in consonance with earlier studies, the growth volatility reducing influence of remittances flows was established. Second, unlike the extant literature, the growth volatility reduction potential of remittances was found to be more pronounced in the presence of well-functioning institutions. Finally, the interaction of remittances with our six institutional quality measures showed that growth volatility reduced considerably with better institutions.

Practical implications

In terms of policy, remittances recipient countries need to simultaneously pursue economic and governance reforms. Both of these will enhance the counter-cyclicality of remittances and possibly other capital flows.

Originality/value

Substantial efforts have been devoted to investigating the impact of remittances on output growth volatility, while very little research attention has been devoted to analysing the impact of institutions on the remittances–output growth volatility nexus.

Details

International Journal of Development Issues, vol. 14 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 11 June 2018

Simplice Asongu, Ibrahim Raheem and Venessa Tchamyou

Financial dollarisation in sub-Saharan Africa (SSA) is most persistent compared to other regions of the world. The purpose of this paper is to complement the existing…

Abstract

Purpose

Financial dollarisation in sub-Saharan Africa (SSA) is most persistent compared to other regions of the world. The purpose of this paper is to complement the existing scant literature on dollarisation in Africa by assessing the role of information sharing offices (public credit registries and private credit bureaus) on financial dollarisation in 25 SSA countries for the period 2001-2012.

Design/methodology/approach

The empirical evidence is based on ordinary least squares and generalised method of moments (GMM).

Findings

The findings show that information sharing offices (which are designed to reduce information asymmetry) in the banking industry are a deterrent to dollarisation. The underpinning assumption that financial development reduces financial dollarisation is confirmed.

Originality/value

There is scant literature on the relevance of information sharing offices in development outcomes in Africa. While the establishment of these offices in most countries in the continent began in 2004, scholarship on the importance of these offices in financial development is sparse.

Details

African Journal of Economic and Management Studies, vol. 9 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 11 September 2017

Ibrahim Dolapo Raheem and Joseph O. Ogebe

The purpose of this paper is to investigate the effects of industrialization and urbanization on CO2 emissions in 20 African countries for the period 1980 to 2013.

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Abstract

Purpose

The purpose of this paper is to investigate the effects of industrialization and urbanization on CO2 emissions in 20 African countries for the period 1980 to 2013.

Design/methodology/approach

In order to correct for cross-sectional dependence, this study adopts the use of pooled mean group. Also, the study contributes to the literature by estimating the direct, indirect and total effects of industrialization and urbanization on carbon emission.

Findings

The results show that industrialization and urbanization directly increase environmental degradation. Interestingly, industrialization and urbanization were also found to reduce environmental degradation through their indirect effects on per capita income. In general, the authors conclude that the indirect effect of industrialization will overcrowd the direct effect, and this will lead to a decline in the overall effect of industrialization on carbon emission. Also, the positive direct effect of urbanization outweighs the negative indirect effect, thus the overall effect of urbanization will endanger carbon emission in the long run.

Originality/value

The existing studies on emission, industrialization and urbanization have typically been biased toward Africa. This present study filled this gap. The choice of African countries is based on the notion that the continent is desirous of expanding her industrialization level. This has coincidentally led to the increase in urbanization growth rate as well as income level of former rural dwellers. The second contribution of this study is the “effects decomposition” into direct, indirect and total effects. This is to reveal some inherent information that might be missing.

Details

Management of Environmental Quality: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 14 November 2016

Ibrahim Dolapo Raheem, Kazeem Bello Ajide and Oluwatosin Adeniyi

The purpose of this paper is to investigate the role of institutions in the financial development-output growth volatility nexus. It provides new channels through which…

Abstract

Purpose

The purpose of this paper is to investigate the role of institutions in the financial development-output growth volatility nexus. It provides new channels through which financial development can dampen the output growth volatilities of the countries under investigation.

Design/methodology/approach

A comprehensive data set for 71 countries covering the period from 1996 to 2012 and the System GMM approach were used. The choice of the methodology is to deal with endogeneity issues such as measurement errors, reverse causality among other issues.

Findings

A number of findings were emanated from the empirical analysis. First, the estimates provided evidence of the volatility-reducing effect of financial development. Second, institutions do not have the same reducing influence on output growth volatility. Third, the interaction of financial development and institutions showed that the output volatility reduction arising from financial development is enhanced in the presence of improved institutions.

Research limitations/implications

The policy implications derived from this study are in twofolds: first, it is important for policymakers to formulate policies that would ensure and enhance the development of the financial sectors, since its importance in minimizing output volatility has been established. Second, institutional quality should be developed so as to further enhance the growth volatility-reducing influence of financial development. Particularly, institutions should be improved along the multiple dimensions captured in the analysis.

Originality/value

To the best knowledge, the novelty of this study to the literature is the introduction of institutions, which is hypothesized to increase the dampening effects of financial development in output growth volatility.

Details

Journal of Economic Studies, vol. 43 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 8 October 2021

Raheem Olatunji Aminu, Wei Si, Shakirat Bolatito Ibrahim, Aisha Olushola Arowolo and Adefunke Fadilat O. Ayinde

This paper evaluates the impact of socio and demographic factors on the multidimensional poverty of smallholder arable crop farming households in Nigeria.

Abstract

Purpose

This paper evaluates the impact of socio and demographic factors on the multidimensional poverty of smallholder arable crop farming households in Nigeria.

Design/methodology/approach

Data were drawn from the second wave of the LSMS-Integrated Surveys on Agriculture General Household Survey Panel 2012/2013. The methods adopted in analysing the data were descriptive statistics, Alkire and Foster Method (AFM) and logit regression model.

Findings

The result shows that 84.34% of the households were headed by a male while 80.26% of the respondents were married with a mean household size of seven persons. The multidimensional poverty of arable crop farm households in Nigeria is 0.60, while the adjusted headcount ratio (MPI) is 0.27, with an average intensity of 0.45. We found that deprivation in the dimension of living standard accounted for 45.5% of the overall multidimensional poverty index (MPI). The result of the logistic regression indicates that household location, gender, household size and non-farm income are negatively correlated to poverty. The factors that increase poverty among households are the age of the household head and access to extension services.

Originality/value

The study presents an alternative means of assessing poverty among smallholder arable crop farming households in Nigeria. This study recommends that policymakers should focus more on improving the living standard of arable crop farming households to reduce poverty in rural areas. Similarly, concerted efforts should be made towards providing adequate health care and improved sanitation, supply of electricity and educational training that goes beyond primary education for farming household members.

Details

International Journal of Social Economics, vol. 49 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 August 2020

Hammed Oluwaseyi Musibau, Waliu Olawale Shittu and Fatai Olarewaju Ogunlana

The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or…

Abstract

Purpose

The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria.

Design/methodology/approach

The authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment.

Findings

The findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria.

Research limitations/implications

A limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries.

Originality/value

Many studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.

Article
Publication date: 11 August 2021

Randolph Nsor-Ambala and Cephas Paa Kwasi Coffie

This paper aims to examine the effect of corruption on foreign direct investment (FDI) inflow in Ghana. This provides answers to the call for further empirical examination…

Abstract

Purpose

This paper aims to examine the effect of corruption on foreign direct investment (FDI) inflow in Ghana. This provides answers to the call for further empirical examination of the contextual impact of corruption on FDI inflow.

Design/methodology/approach

The study uses a non-linear ADRL time series econometric model to estimate data from the World Bank and the international country risk guide (1984–2019).

Findings

The study confirms the sand in the wheel and the grabbing hand hypothesis of the impact of control of corruption (CoC) on FDI both in the short and long run. However, degradation on the CoC index has a significant and more than a proportionate constraint on FDI inflows, while an improvement in CoC has no significant impact on improving FDI inflows. An explanation for this outcome was proposed after comparing this finding to a similar prior study with a Nigerian data set (Zangina and Hassan, 2020). The proposed explanation relied mainly on the rational expectation hypothesis and drawing elements of the efficient market hypothesis. FDI inflows do not react to outcomes or trajectories reasonably expected because such rationally expected future outcomes will have been modelled into existing FDI movement decisions. Instead, FDI flows react to “surprises” and often respond in a more than proportional manner.

Practical implications

Political leadership in Ghana should be conscious of the severe adverse effects of inaction or ineffective action in curbing corruption, leading to slippering in CoC rankings. In the case of Ghana, the dependence of FDI on CoC is even more pronounced as the other variables within the specified model show an insignificant impact on FDI. Additionally, admittedly aggregated cross-country data in econometric modelling is appealing and has some empirical basis, but these must not erode the relevance of country-specific studies as both are needed to support theorization.

Originality/value

The paper is among the first to test for the asymmetric relationship between corruption or its control thereof and FDI with a time series approach, and hence, the findings offer new insight.

Details

Journal of Financial Crime, vol. 29 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 26 March 2019

Abdullah A. Khawam and Nancy S. Bostain

The purpose of this paper is to address the primary research question, which is what is the relationship between the project manager’s (PM) possession of the Project…

Abstract

Purpose

The purpose of this paper is to address the primary research question, which is what is the relationship between the project manager’s (PM) possession of the Project Management Professional (PMP) certification and the level of the safety culture present in the construction project the PM manages.

Design/methodology/approach

The research was based on a survey of a purposive sample, 109 engineers and first-line supervisors worked in 23 construction projects of which ten were led by PMP-certified PMs and 13 were led by PMs lacking PMP certification. Each PM completed a demographic questionnaire for the predictor variables of PMP certification controlled for age and experience. To assess the criterion variable of safety culture total score, engineers and first-line supervisors working in the same project completed the questionnaire of safety culture values and practices.

Findings

Results of this study indicated the level of safety culture was significantly different, and improved, for engineers and first-line supervisors who work under PMs with PMP certification compared to the level of safety culture in projects managed by PMs with no PMP certification. Although alignment of safety culture perceptions among different levels in the organization helps to achieve a positive safety culture, the role of the PM in transferring, implementing and maintaining the safety culture in the construction project is fundamental, particularly in small-to-medium sized enterprises (SMEs).

Originality/value

This study addressed the role of the PMs managerial skills in the safety performance of Saudi Arabian SMEs. The principal finding was that PMs with managerial skills perform better regarding safety performance in SME construction projects than PMs lacking managerial skills. The primary recommendation is that leaders in construction projects must carefully evaluate engineers’ managerial skills before hiring the individuals as PMs. A PM’s promotion model developed in this study provides a suitable framework and business process component for construction leaders seeking to maintain safety performance successfully.

Details

International Journal of Managing Projects in Business, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 1 February 2021

Abdulhadi Aliyara Haruna and Abu Sufian Abu Bakar

This study aims to examine the effect of domestic financial deregulation on economic growth in five selected sub-Saharan African nation (SSA). The paper also explored the…

Abstract

Purpose

This study aims to examine the effect of domestic financial deregulation on economic growth in five selected sub-Saharan African nation (SSA). The paper also explored the interaction effect of domestic financial deregulation and corruption on growth.

Design/methodology/approach

The paper used Driscoll and Kraay standard errors based on the pooled ordinary least squares, which is robust to heteroskedasticity, cross-sectional dependence and autocorrelation.

Findings

The outcome indicates that domestic financial liberalization has accelerated growth in SSA economies. Similarly, evidence reveals that foreign direct investment and credit to the private sector by banks accelerate growth. However, evidence indicates that labour and capital negate growth. Also, the interaction term for domestic financial liberalization and corruption shows a negative influence on growth. The study, therefore, recommends that well-tailored policy design and strategy be implemented to provide a smooth and conducive business environment for investors.

Originality/value

Numerous studies have analysed the influence of financial deregulation on growth; however, none have examined the effects of domestic financial deregulation on growth in the context of SSA. Also, no studies have explored the interaction effect of domestic financial deregulation and corruption on growth.

Details

Journal of Financial Crime, vol. 28 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

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