This study analyzes the effect of internal factors of bank performance on deposit flows, considering the changes in the stock market conditions in Ghana. A panel dataset covering 2007 to 2021 of 18 ...banks in Ghana is applied in a dynamic panel model for the analysis. The results show that the lagged deposit growth exerts an impressive influence of 0.68 percent on the future deposit flows of banks, thus positing a favorable implication for their trading momentum. Also, liquidity was found to have a negative relationship of –0.64 percent with deposit growth. This implies that the holding of excess liquidity diminishes investors’ confidence in a bank’s ability to generate more revenue to enhance the value of their funds, as high liquidity ratios reduce the bank’s capacity to grant more loans for profit. Furthermore, the analysis revealed a positive effect of 1.93 percent by expenditure on deposit growth, which suggests that depositors recognize a rise in operational costs as an indication of a bank’s potential for growth and rapid expansion. Moreover, the analysis found the existence of a negative effect of –0.88 percent by the stock market conditions on deposit growth, which implies that bullish market conditions reduce bank deposits. This verifies that the determinants of deposit flows adapt to the changes in market conditions. Policy strategies should include non-performance metrics such as an increase in the interest paid on customers’ deposits, product promotions, and targeted advertisements to sustain the inflow of depositors’ funds under changing market conditions.
PurposeThe study analyzed the moderating role of information and communication technology (ICT) in the financial inclusion–poverty nexus in Nigeria.Design/methodology/approachThe study adopts a ...battery of econometric techniques such as the generalized method of moments and the fully modified OLS to control for heterogeneity and endogeneity issues in the poverty literature.FindingsThe results show that ICT (regardless of the measure of ICT adopted) moderates the impact of financial inclusion on poverty in Nigeria. Specifically, the result shows that ICT strengthens the effectiveness of financial inclusion to reduce poverty. In particular, the results show that in the presence of unanticipated macroeconomic shock, ICT can help to deepen financial inclusion, reduce the negative effects of an unanticipated shock and ameliorate poverty in Nigeria. That is, the vulnerability of the poor in Nigeria to unanticipated economic shocks can be reduced by expanding the use of ICT in the financial sector. The research and policy implications are discussed.Originality/valueThe study accounts for the impact of COVID-19.
Background In South Africa, poor service delivery has been a major problem in many municipalities, partly because of corruption, political patronage and skills deficits at local administrative ...levels.Aim This study aimed to critically assess the extent of service delivery deficit and find ways to improve service delivery in the study area and beyond.Setting This study is framed on the ideals of theory of social contract that states the relationship between the state and society. In this line, this study highlights Weber’s theory of bureaucracy and the new public management (NPM) that gets its theoretical foundations from public choice and principal–agent theories.Methods The study used primary data collected from 120 respondents. A descriptive quantitative method was used using questionnaire and content analysis of official documentations.Results The study finds that residents in the study area are not satisfied with the level of current municipal services provided. In addition, the study reveals that the municipality does not generate enough funds because of non-payment for the services rendered that will substantially reduce basic municipal services provision. Furthermore, contrary to the common belief that rural municipal residents demand free services, this study finds that residents are willing to pay modest fees for the quality services rendered.Conclusion The residents in the Dr JS Moroka Local Municipality (DR JSMLM) value essential services such as water and electricity more than other services. The status of service delivery in the municipality is rated poor. However, the residents still believe that there are possibilities for the improvements in the service delivery if the municipality adheres to its Integrated Development Plan (IDP) for the years ahead.
This study applies Keynesian macroeconomic theory in the ARDL model to compare the growth effects of the US's AGOA and China's FOCAC multilateral trading systems in South Africa from the first ...quarter of 2001 to the fourth quarter of 2022. The study uses South Africa's net exports with the corresponding partner as a proxy for each multilateral trading system. This quantification stems from the fact that South Africa's trade with the US and China has significantly improved since the establishment of AGOA and FOCAC in 2000. Our findings show that none of the multilateral trading systems contribute significantly to South Africa's economic growth. Rather, they appear to be used as strategic initiatives to gain access to mineral resources and facilitate the movement of mining machinery and other inputs into South Africa. To some extent, they are used as market-seeking initiatives, particularly FOCAC. It is worth noting, however, that the mineral resource preferences of these systems vary: while China prioritizes mineral products, the US prioritizes precious metals. This suggests that China and the US scramble for natural resources in South Africa, and possibly Africa in general, is complementary rather than competitive.
This paper examines the asymmetry (steepness and deepness asymmetry) in per capita health care expenditure and disposable income series in the 50 US states over the period 1966–2009, using the ...nonparametric Triples test techniques, together with the parametric Fisher–Pearson skewness test. The results suggest significant evidence of asymmetric behaviour (mainly, steepness asymmetry) in many of these series, questioning, thus, the adequacy of linear models when modelling the behaviour of these two series.
The study investigates the effect of FinTech on financial inclusion in Southern African Development Community (SADC) member states over the period 2011–2021, while also looking at the transmission ...channels. The study adopts a battery of econometric techniques such as ordinary least squares (OLS), the two‐step system generalized method of moments (GMM) and the Driscoll and Kraay covariance estimator. The study finds that FinTech (proxied by digitization) deepens financial inclusion (access to loan) and a decline in the number of bank branches in SADC member states. This is logical since the operations of FinTech are digital. This implies that an attempt to promote financial inclusion by traditional means such as building physical bank structures may be limited, especially in Africa where large swathes of the populace remain unbanked. As expected, FinTech (measured by automated teller machines ATMs) increases the number of bank branches in SADC. We also find that mobile cellular subscription, the share of population with access to electricity and Internet access and mean years of schooling are important transmission channels of FinTech to financial inclusion in SADC. In general, the result shows that FinTech enhances and deepens financial inclusion in SADC member states. The research and policy implications are discussed.
PurposeThe study investigates the effectiveness of government policies to mitigate the impact of a pandemic. The study adopts the small open economy of Nigeria for the following reasons. First, ...Nigeria is the largest economy in SSA. Second, Nigeria was also significantly impacted by the COVID-19 pandemic.Design/methodology/approachThe study employed the time-varying structural autoregressive (TVSVAR) model to control for the potential asymmetry in fiscal variables and to control for the shift in the structural shift, following a macroeconomic shock. As a form of robustness, the study also implements the time-varying Granger causality to formally assess the temporal instability of the variable of interest.FindingsThe results show that an oil price shock is an important source of macroeconomic instability in Nigeria. Importantly, the results indicate that the effects of fiscal policy are strongly time varying. Specifically, the results show that fiscal policy helps to stabilize the economy, (i.e. they help to reduce inflation and spur output growth) following macroeconomic shock. Further, the Granger test shows that fiscal policy helped to spur growth in Nigeria. The research and policy implications are discussed.Originality/valueThe study accounts for the time-varying effects of fiscal policy.
The main objective of this study is to employ the four perspectives of the Balanced Scorecard (BSC) for the analysis of cyberfraud in the South African Banking industry. In addition, this study ...develops a BSC strategic management control framework for mitigating the effect of cyberfraud in the South African Banking industry. To achieve these objectives, a qualitative approach involving the use of a structured questionnaire for data collection was used. The structured questionnaire made available to the staff of 17 licensed banks in South Africa in charge of management, administration and operations sections. Then the four perspectives of BSC i.e., the financial, internal business processes, customer as well as learning and growth perspectives were captured. The analysis of the responses obtained from primary data was carried out using a bar chart, and this led to the development of a BSC strategic management control framework for mitigating the effects of cyberfraud. The findings from this study show that the customer perspective, has 90.47% percent response from the indicators followed by learning and growth which relates to the employees (85.71%). The internal business processes are ranked in the third position with 57.26% while the financial perspective has the least with a percent response of 39.97%. This implies that the South African banking sector pays more attention to the non-financial than the financial measures. The implementation of the proposed BSC framework may help to promote cyberfraud reduction, improve management control systems, performance measurements, as well as customers' and shareholders’ satisfaction.
Cyberfraud; BSC perspectives; Performance measurement; Strategic management and control framework.
The purpose of this study is to analyze the possible effect of international remittances on the economic growth in three selected economies of Intergovernmental Authority on Development (IGAD) member ...countries, namely, Ethiopia, Kenya, and Uganda. Remittance inflows have emerged as a key link between human mobility and development. However, empirical findings on the nexus between remittances and economic growth are either conflicting or at most mixed. This paper explores the effects of remittances from international migration inflows on the economic growth of three IGAD member countries. The study uses quantitative analysis that encompasses the above-mentioned countries using the World Bank's annual data from 1990 to 2017. The novelty of this study is that it uses different approaches to solicit the short-run and the long-run nexus between economic growth and remittance flow. The pooled estimation result from fully modified least squares (FMOLS) shows that the logarithm of remittances impacts the dependent variable, economic growth, positively but not statistically significant. The Kao panel residual cointegration test shows that the null hypothesis is not sufficiently supported by the data. There is a statistically significant long-run relationship between the variables in the series.
Access to finance is one of the factors influencing economic activities. The current study aimed at determining the role of finance in the South African agro-industrialization relationship. To ...achieve the study objective, bounds testing, the autoregressive distributed lag (ARDL) and error correction approaches were applied on quarterly time series data spanning between the first quarter of 1994 and the last quarter of 2021. Additionally, an interaction term was included to assist the aforementioned models in determining linkage between agriculture and industrial outputs through farmer's access to finance. Findings revealed that agricultural output and finance are valid forecasters of the industrialization behaviour in the long-run. Access to finance leads to industrial growth while agricultural output growth causes a decline in the industrialization. Nonetheless, aggregate growth of both financial access and agricultural output are associated with industrial output in the short-run. Grounded of the study findings, this study concludes that financial access influence both agriculture and industrial output. Consequently, improving famers' financial access through financial facilities, financial intermediaries and government subsidies could be a worthwhile strategy or policy to enhance a country's industrialization. As implication of the study, obtained finding can assist in linking effectiveness of primary, secondary and tertiary economic sectors in South Africa.
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