Search results

1 – 10 of 48
Article
Publication date: 1 February 1992

M.O. Odedokun

Examines the revenue and expenditure behaviour of the 19 stategovernments in Nigeria separately for the civilian and military regimesof 1980‐83 and 1984‐87, respectively…

Abstract

Examines the revenue and expenditure behaviour of the 19 state governments in Nigeria separately for the civilian and military regimes of 1980‐83 and 1984‐87, respectively, with a view to comparing the two. Annual figures are employed in the regression analysis through pooling of time series and cross‐section data and all the endogenous items of state government budgetary accounts, expressed in per capita terms, are analysed. Suggests that: (1) per capita federal allocations, population, population density, per capita income, and literacy items all influence the per capita endogenous budgetary items; (2) the impacts of these factors, except population density, on the budgetary items materially differ over the civilian and military regimes; and (3) autonomous components of these endogenous budgetary items also differ over the two regimes.

Details

International Journal of Public Sector Management, vol. 5 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 June 1998

M.O. Odedokun

Presents a model that is suitable for evaluating not only the total effects of financial intermediation on economic growth, but also the channels through which the effects…

5439

Abstract

Presents a model that is suitable for evaluating not only the total effects of financial intermediation on economic growth, but also the channels through which the effects are brought about. These two channels are: the externality of financial on the real sector and the inter‐sectoral differential between financial and real sectors in the productivity of factors of production. Also presented is the conventional and rather ad hoc model for evaluating the effect of financial intermediation on economic growth. All the models were estimated with cross‐sectional data over the 1970s and 1980s for 90 developing countries and the main findings are that: financial intermediation exerts positive effects on economic growth in developing countries; the two postulated channels of the effects of financial intermediation are both relevant in developing countries; and financial depth, defined as the ratio of financial aggregates to GDP, promotes economic growth in only low‐income developing countries while it has no effect in high‐income ones.

Details

Journal of Economic Studies, vol. 25 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Abstract

Details

Modelling the Riskiness in Country Risk Ratings
Type: Book
ISBN: 978-0-44451-837-8

Article
Publication date: 1 October 1996

M.O. Odedokun

Analyses parallel exchange rate behaviour in African countries, using a monetary approach. Employs quarterly data over the 1980‐1991 period, pooled across 18 countries and…

1757

Abstract

Analyses parallel exchange rate behaviour in African countries, using a monetary approach. Employs quarterly data over the 1980‐1991 period, pooled across 18 countries and the predictions of the monetary approach are not contradicted by the data. Finds, in particular, that monetary expansion, depreciation of official exchange rate, expectation of inflation, and rising interest rate cause depreciation of domestic currency in the black market while rising real income causes its appreciation.

Details

Journal of Economic Studies, vol. 23 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 19 June 2019

Isaac Boadi, Daniel Osarfo and Perpetual Boadi

The purpose of this paper is to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60countries.

Abstract

Purpose

The purpose of this paper is to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60countries.

Design/methodology/approach

This study uses fixed effect and generalized method of moments (GMM) to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries. The study further controls regional effects and the Asian crisis, as well as the global economic crisis.

Findings

The empirical results of the study revealed that market-based development positively affects economic growth. Besides, market-based financial development indirectly promotes investment, which has the potential to strongly enhance growth. The findings of this study, therefore, provide more support to pro-market-based financial development policies in these regions. Interestingly, bank-based development has no direct impact on development, but indirectly encourages investment, which also promotes growth.

Originality/value

This paper is the first of its kind to empirically examine fixed effect and GMM to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries.

Details

Studies in Economics and Finance, vol. 36 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 6 May 2014

Sheilla Nyasha and Nicholas M Odhiambo

The purpose of this paper was to survey the existing literature on the causal relationship between bank-based financial development and economic growth, highlighting the…

1613

Abstract

Purpose

The purpose of this paper was to survey the existing literature on the causal relationship between bank-based financial development and economic growth, highlighting the theoretical and empirical evidence from recent work. Although some previous studies have attempted to conduct a survey of the existing research on the finance-growth nexus, the majority of these studies have failed to distinguish between bank-based and market-based financial developments. To our knowledge, this may be the first study of its kind to survey the existing research on the causal relationship between bank-based financial development and economic growth – in both developed and developing countries.

Design/methodology/approach

Overall, our study shows that most of the literature reviewed in this paper either supports bidirectional causality between bank-based financial development and economic growth or reinforces the conventional supply-leading response phenomenon. Notwithstanding this outcome, the study also finds the literature in favour of a demand-following response to be increasing – in both number and substance – especially in recent years.

Findings

The paper, therefore, concludes that the causal relationship between financial development and economic growth is not clear-cut and that the notion that financial development automatically leads to economic growth is merely based on prima facie or superficial evidence.

Originality/value

Although some previous studies have attempted to conduct a survey of the existing research on the finance-growth nexus, the majority of these studies have failed to distinguish between bank-based and market-based financial developments. To our knowledge, this may be the first study of its kind to survey the existing research on the causal relationship between bank-based financial development and economic growth – in both developed and developing countries.

Details

Journal of Financial Economic Policy, vol. 6 no. 2
Type: Research Article
ISSN: 1757-6385

Keywords

Content available
Book part
Publication date: 23 April 2005

Abstract

Details

Modelling the Riskiness in Country Risk Ratings
Type: Book
ISBN: 978-0-44451-837-8

Article
Publication date: 22 July 2019

Augustine Chuck Arize, Ebere Ume Kalu, Chinwe Okoyeuzu and John Malindretos

This study aims to make a comparative study of the applicability of the purchasing power parity (PPP) in selected less developing countries (LDCs) on one hand and European…

Abstract

Purpose

This study aims to make a comparative study of the applicability of the purchasing power parity (PPP) in selected less developing countries (LDCs) on one hand and European countries on the other hand.

Design/methodology/approach

The research design is empirical and ex post facto. This study uses an assortment of co-integration tests and error correction representation. The chosen approach allows for the consideration of long-run elasticities and the dynamics of the short-run adjustment of exchange rates to changes in domestic and foreign prices. Monthly data are used for the period 1980:1 through 2015:12 (i.e. 432 observations).

Findings

Results from long-run co-integration analysis, short-run error correction models and persistence profile analysis overwhelmingly confirm the validity of PPP in these two sets of countries regardless the disparity in their relative exchange rate and price characteristics.

Research limitations/implications

Curiously, several of these empirical studies and still many more, have focused their attention on the experiences of industrialized countries, with a few investigations devoted to LDCs. The evidence is even scarcer in Africa. Clearly, the acceptance of any hypothesis as a credible explanation of economic reality hinges on the robustness of the hypothesis across countries with different economic and institutional frameworks.

Practical implications

Knowledge of the extent to which exchange rate and relative prices can be linked in the long run is important for the design and management of inflation and the implementation of monetary policy. For instance, policy actions aimed at stabilizing the domestic economy can obtain results that are, at best, uncertain in the absence of correct characterization of the PPP dynamics. Moreover, structural and macroeconomic adjustment programs implemented in these countries to achieve economic growth and external competitiveness could be unsuccessful if flawed estimates of PPP exchange rates are retained.

Originality/value

Several empirical studies have been done to prove the validity or otherwise of the PPP. Unlike prior authors, this study makes a comparative study of the applicability of the PPP in selected LDC on one hand and European countries.

Details

Journal of Financial Economic Policy, vol. 12 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 1 March 2003

Mohammad Ziaul Hoque

Industrial credit providers in developing countries have been experiencing serious financial distress since the late 1970s due to persistent industrial loan default…

Abstract

Industrial credit providers in developing countries have been experiencing serious financial distress since the late 1970s due to persistent industrial loan default. Despite the application of a number of remedial measures, loan default problem continued to haunt them. This paper advances this argument that one of the prime reasons for loan default is the morally indefensible behaviour of borrowers and lenders in developing countries. The author has provided evidences from Bangladesh in support of such contention and recommends for changes in lenders and borrowers behaviour to create deterrent against moral hazard problems in order to reduce incidents loan default.

Details

Humanomics, vol. 19 no. 3
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 5 August 2019

John Kagochi

The purpose of this paper is to examine the link between inflation and the financial sector performance in Sub-Saharan African (SSA) countries.

Abstract

Purpose

The purpose of this paper is to examine the link between inflation and the financial sector performance in Sub-Saharan African (SSA) countries.

Design/methodology/approach

The study analyzes the relationship between inflation and the financial sector performance for selected 22 Sub-Saharan countries from 1980 to 2013. The study used panel data and the dynamic panel generalized method of moments econometric method. The study concentrates on the link between inflation and the development of the banking sector.

Findings

The findings suggest that inflation does not promote financial sector development in SSA region while trade openness has a positive impact on the selected financial development indicators. Other variables that enhance financial development in SSA include government expenditure and good governance.

Practical implications

The main policy implication of the study is that in order for SSA countries to benefit from a deeper and more active financial sectors, the rates of inflation must be maintained low and be consistently under control. Also, for SSA region financial sectors to become deeper and more active it is crucial to develop stronger economic institutions including independent central banks and sound fiscal authorities.

Originality/value

The study differs from previous studies as it includes more (22) countries from SSA region while previous studies were either regional or country specific. The study also incorporates trade openness and the role of institutional quality in enhancing financial development. This differentiates the study from previous studies on the subject from the region.

Details

Journal of Economic Studies, vol. 46 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

1 – 10 of 48