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Article
Publication date: 15 October 2020

Clement Moyo and Pierre Le Roux

The impact of financial development on economic growth has received considerable attention since the 2008/2009 global financial crisis. High levels of credit to the…

Abstract

Purpose

The impact of financial development on economic growth has received considerable attention since the 2008/2009 global financial crisis. High levels of credit to the private sector were partly to blame for the crisis, and this has re-ignited the debate on whether the growth-enhancing effects of financial development outweigh the retarding effects associated with financial crises. This paper therefore examines the financial development–growth nexus in SADC countries during the period 1990–2015.

Design/methodology/approach

The empirical analysis is conducted using the pooled mean group estimator. Furthermore, financial development indices are created due to the strong correlations between the individual financial development indicators using principal component analysis.

Findings

The results show that financial development, captured by the indices or the individual financial development indicators, has a negative impact on economic growth in the long term.

Research limitations/implications

Due to the unavailability of data, the study only focussed on banking sector development. The researcher would have preferred to incorporate stock market development.

Practical implications

Due to financial vulnerabilities emanating from an inadequate monitoring and supervisory framework, further enhancement of financial development should be undertaken with caution in SADC countries. Therefore, institutional quality should be enhanced in order for SADC countries to benefit from the development of the financial sector.

Originality/value

Most studies investigating the financial development–growth nexus in SADC countries utilise the individual measures of financial development which often produce contradicting results. This study constructs financial development indices to capture the impact of various banking sector development indicators on growth.

Details

African Journal of Economic and Management Studies, vol. 12 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 16 April 2020

Clement Moyo and Pierre Le Roux

The impact of financial reforms and financial development on an economy has received considerable attention over the recent past. This paper aims to investigate whether…

5775

Abstract

Purpose

The impact of financial reforms and financial development on an economy has received considerable attention over the recent past. This paper aims to investigate whether financial liberalisation and financial development increase the likelihood financial crises in Southern African development community (SADC) countries.

Design/methodology/approach

Due to the binary nature of the dependent variable, the logit model is used for the analysis using data for the period 1990 to 2015.

Findings

The results showed that financial liberalisation captured by real interest rates reduces the likelihood of financial crises. Furthermore, regulatory quality strengthens this reductive effect of financial liberalisation on the probability of financial crises. On the other hand, financial development represented by bank credit increases the incidence of financial crises. The results also suggest that financial liberalisation may increase the likelihood of financial crises indirectly through financial development.

Research limitations/implications

The study recommends that a sound regulatory and supervisory framework be established as well as institutional quality raised to curb the effect of financial development on the incidence of financial crises.

Originality/value

There is scant evidence on the role that financial liberalisation and financial development play in the incidence of financial crises in the SADC. This study incorporates the effect of institutional quality in the analysis which has been neglected by most studies on financial reforms in SADC countries. A number of recent studies in SADC countries conclude that financial development resulting from financial reforms, may hinder economic growth. Therefore, this study sheds light on this negative relationship.

Book part
Publication date: 12 November 2018

Fabian Mundt and Kenneth Horvath

Relational thinking and spatial analyses have become highly relevant for higher education research. However, choices of research methods and specifically of statistical…

Abstract

Relational thinking and spatial analyses have become highly relevant for higher education research. However, choices of research methods and specifically of statistical procedures do not often correspond to the epistemological underpinnings implied by relational perspectives. Against this background, this chapter illustrates the uses and challenges of geometric data analysis (GDA) for studying the complexities and dynamics of current spaces of higher education. GDA can be described as a set of statistical techniques that allow the identification, assessment and visualisation of complex relations in social science data. Using an investigation into the social topologies of first-year students as an example, we discuss the mathematical foundations, the step-by-step procedures of data analysis, the interpretation of results and strategies for integrating GDA into multimethod research designs. In sum, we argue that GDA does not only entail a comprehensive set of statistical instruments that permit visual analysis of relational structures, but also enables the systematic integration of qualitative and quantitative methods, hence supporting the development of innovative and coherent research designs and analytical strategies.

Details

Theory and Method in Higher Education Research
Type: Book
ISBN: 978-1-78769-277-0

Keywords

Book part
Publication date: 12 April 2005

Discuss in detail the uses which might legitimately be made of the following passage by the writer of a profound study of economic life and thought in France at the end of…

Abstract

Discuss in detail the uses which might legitimately be made of the following passage by the writer of a profound study of economic life and thought in France at the end of the reign of Louis XIV. In answering the question make full use of your knowledge of (a) historical criticism; (b) French economic and general history.

Details

Further University of Wisconsin Materials: Further Documents of F. Taylor Ostrander
Type: Book
ISBN: 978-0-76231-166-8

Book part
Publication date: 2 September 2016

Jean-Michel Servet

The chapter looks for the conditions of a contribution of microcredit to poverty alleviation.

Abstract

Purpose

The chapter looks for the conditions of a contribution of microcredit to poverty alleviation.

Methodology/approach

It uses socioeconomical hypotheses for defining a direct and fast positive effect of microcredit on the income of the poorest. The contribution raises ten issues or conditions at a micro, meso and macro level.

Findings

It is not often that these ten conditions are all completely met. So, the impact of microcredit is generally low as regards the alleviation of poverty. The problems to achieve them are linked to the specificities of the clients and of the prevailing institutions in various sub-Saharan Africa countries.

Originality/value

The chapter clearly identifies the limits of microcredit and their reasons.

Details

Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance
Type: Book
ISBN: 978-1-78560-980-0

Keywords

Article
Publication date: 1 January 1953

M. ROBERT‐HENRI BAUTIER

Avant‐propos sous les auspices de l'Institut international de Coopération intellectuelle, paraissait en 1934 le t. I, consacré à l'Europe, du Guide international des

Abstract

Avant‐propos sous les auspices de l'Institut international de Coopération intellectuelle, paraissait en 1934 le t. I, consacré à l'Europe, du Guide international des Archives. Le questionnaire envoyé à tous les États européens comportait sous les points 4 et 6 les questions suivantes: ‘Existe‐t‐il un guide général pour les diverses catégories d'Archives ou des guides particuliers pour l'une ou l'autre d'entre elles?’ et ‘Existe‐t‐il des catalogues imprimés, des publications tant officielles que privées, susceptibles de constituer un instrument complet de référence pour tout ou partie importante des fonds d'archives?’ Les réponses des divers pays à ces questions, malgré leur caractère très inégal, ont fait du Guide international un bon instrument d'information générale sur les Archives. Malheureusement les circonstances ont empêché la publication du volume consacré aux États non européens, tandis que le temps qui s'écoulait tendait à rendre périmés les renseignements fournis sur les Archives européennes.

Details

Journal of Documentation, vol. 9 no. 1
Type: Research Article
ISSN: 0022-0418

Book part
Publication date: 1 July 2015

Michel Roux

Contrary to what its title might suggest, this chapter does not develop an alternative vision of finance. On the basis of the financial world as it currently operates, we…

Abstract

Contrary to what its title might suggest, this chapter does not develop an alternative vision of finance. On the basis of the financial world as it currently operates, we propose to identify the paradoxes and the likely evolution of a banking and financial system evolving. Based on the facts, this chapter seeks to extend the discussions initiated in the last chapter, entitled “Socially responsible banks?” of our book “The management of the bank,” published by Vuibert editions. The frantic pace of innovation and the requirements of regulators encourage banks to review their organization and their governance. This chapter attempts to position the bank between two paradoxes: on one side, the crises have not made more responsible banks. The facts remain: rates and currency manipulation, embezzlement rules on bonuses, even if some are still under financial assistance of the United States. On the other hand, the “finance otherwise” innovates, disturbs, and upsets. Creative players such as collaborative funding or virtual currencies are not really threatening to the big banks. But in the past, marked by their personnel costs and infrastructure cannot meet the agility of these new entrants “crowdfunding,” and other online payment methods have backed the Web. These innovations really threaten banks that do not lack the resources to adapt. And if tomorrow, the banks no longer existed? Behavior changes and already a growing number of clients save, borrow, and lend the use of means of payment to settle their online purchases without using the services of traditional financial institutions! A certainty, “finance otherwise,” will play a stimulatory role. The speed and magnitude of change is such that it becomes necessary for banks and financial institutions to adapt to these new technologies to increase or simply maintain their business. Based on the facts, the chapter explores and analyzes the developments that may become sustainable for a banking system reluctant to lose the monopoly of the distribution of credit and means of payment. The “end of the banks,” is a “provocative” subject but insufficiently addressed in the economic literature.

Details

Monetary Policy in the Context of the Financial Crisis: New Challenges and Lessons
Type: Book
ISBN: 978-1-78441-779-6

Keywords

Book part
Publication date: 19 November 2012

Michel Roux

Purpose – This chapter aims to show the similarities and differences that can be found in the destiny of cooperative banks and mutual insurance companies; these two…

Abstract

Purpose – This chapter aims to show the similarities and differences that can be found in the destiny of cooperative banks and mutual insurance companies; these two industries, for reasons both similar and specific, are now “at a crossroads.” To reinforce this, we begin by tracing the history of cooperative banks and mutual insurance companies to better inform the future. Cooperative banks and mutual insurance gradually secularized and out of corporatism have patiently built-in different ways depending on the network as opposed to companies.

Results – This chapter will pursue these observations by identifying the impacts of recent crises in shaping business models by questioning a central issue which is that the trap values meet performance requirements in a fierce competition. Then, this chapter will end with the discussion on the main challenges faced by the mutual sphere; «She» should be replaced by «it». Could it exert a role in the crisis?

Details

Recent Developments in Alternative Finance: Empirical Assessments and Economic Implications
Type: Book
ISBN: 978-1-78190-399-5

Keywords

Content available
Book part
Publication date: 30 June 2021

Neil Baxter

Abstract

Details

Running, Identity and Meaning
Type: Book
ISBN: 978-1-80043-367-0

Content available
Book part
Publication date: 20 August 1996

Abstract

Details

The Peace Dividend
Type: Book
ISBN: 978-0-44482-482-0

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