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Article
Publication date: 13 March 2017

Daniel Makina

The purpose of this paper is to explore the landscape of financial services in Africa through the prism of a selection of research papers.

910

Abstract

Purpose

The purpose of this paper is to explore the landscape of financial services in Africa through the prism of a selection of research papers.

Design/methodology/approach

This is a review of literature that focusses on access to financial services (i.e. financial inclusion) and empirical findings from research papers in this issue of the journal.

Findings

The landscape of financial services in Africa is as heterogeneous as the countries comprising the continent. Common features include low levels of financial inclusion, low financial literacy, constrained access to credit, costly credit when available, gender discrimination in account ownership, and use and inefficient foreign exchange markets. Nevertheless, there are promising innovations, especially the mobile money innovation, which have the potential to foster more inclusive financial systems.

Originality/value

All the papers in this volume are based on original research shedding new insights on various aspects of financial services in Africa.

Details

African Journal of Economic and Management Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

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Article
Publication date: 13 March 2017

Letenah Ejigu Wale and Daniel Makina

The purpose of this paper is to understand the effect of individual characteristics (such as sex, age, education and income) on the likelihood of account ownership and use in…

493

Abstract

Purpose

The purpose of this paper is to understand the effect of individual characteristics (such as sex, age, education and income) on the likelihood of account ownership and use in selected Sub-Saharan African (SSA) economies. Account use is operationalized into two constructs namely the use of account to save and the frequency of account use.

Design/methodology/approach

Data from 18,000 individuals from 18 SSA economies are used for the analysis. These data are sourced from the World Bank’s Global Findex database. Simple probit and selection models are employed as econometric tools.

Findings

Account ownership and use is found to be higher among males, middle aged, high income and educated individuals. The marginal effect of income and education is most pronounced suggesting more policy attention is required in respect of the two factors.

Practical implications

Due to causality issues between financial inclusion and income, addressing the plight of the poor in financial inclusion projects will be a continuing challenge for policy makers.

Originality/value

It supplements the dearth of econometric studies conducted on the topic. Furthermore, regional specific factors affect the generality of results which calls for such type of studies.

Details

African Journal of Economic and Management Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Available. Open Access. Open Access
Article
Publication date: 25 April 2022

Bashir Ahmad Joo, Sana Shawl and Daniel Makina

This study aims to assess the impact of foreign direct investment (FDI) on growth in presence of host country characteristics, namely, economic stability, human capital, financial…

5445

Abstract

Purpose

This study aims to assess the impact of foreign direct investment (FDI) on growth in presence of host country characteristics, namely, economic stability, human capital, financial development and trade openness, in the fastest emerging Brazil, Russia, India, China, South Africa (BRICS) economies, considered to be significant FDI destinations.

Design/methodology/approach

The panel data for the variables under study, collected from World Investment Reports published by World Bank, are analyzed using feasible generalized least squares method to examine the relationship between the dependent and explanatory variables over the period 1987–2018. The interaction effect has been studied to examine the growth impact of FDI in presence of host country characteristics.

Findings

The findings revealed that FDI does not exert a significant impact on the economic growth of BRICS individually but has a significant growth impact only in presence of host country characteristics. FDI on interacting with financial development, trade openness and human capital exerts a positive impact on the economic growth of BRICS economies, and on interacting with economic instability (inflation), FDI has a negative impact on growth.

Practical implications

The study has implications for policy makers of BRICS countries who are suggested to work toward the development of financial markets, trade liberalization and human capital development to realize the positive growth impact of FDI.

Originality/value

Very few studies have been conducted to examine the growth effect of FDI in BRICS economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. Assessing the interaction of FDI with absorptive capacities/host country characteristics to study its growth impact in BRICS using long data and robust panel data methodology is an original contribution of this paper toward the existing body of knowledge.

Details

Journal of Economics and Development, vol. 24 no. 3
Type: Research Article
ISSN: 1859-0020

Keywords

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Article
Publication date: 25 November 2014

Daniel Makina

The purpose of this paper is to examine the predictability of remittances in individual developing countries. It achieves this objective by testing for mean reversion (i.e…

297

Abstract

Purpose

The purpose of this paper is to examine the predictability of remittances in individual developing countries. It achieves this objective by testing for mean reversion (i.e. stationarity) in the monthly remittance series reported to the World Bank by 21 developing countries.

Design/methodology/approach

Unit root tests on remittance time series are undertaken using three tests – the augmented Dickey-Fuller test, the Phillip-Peron test and the Kwiatkowshi, Phillips, Schmidt and Shin test. Stationarity of series in levels would indicate mean reversion and predictability of remittances.

Findings

The paper finds significant evidence of mean reversion and hence predictability in remittance inflows in 17 developing countries.

Practical implications

Remittance inflows, which have become an important source of external finance for many developing countries, are not random flows but a stable and predictable stream of financial flows.

Originality/value

Prior research has focused on volatility of remittances in comparison with other capital flows and then inferred stability from them having lower volatility. Using available monthly data, this paper is the first to directly test for mean reversion and hence predictability of remittances.

Details

International Journal of Social Economics, vol. 41 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

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Article
Publication date: 8 July 2020

Simplice A. Asongu and Nicholas M. Odhiambo

The purpose of this paper is to assess the importance of credit access in modulating governance for gender-inclusive education in 42 countries in Sub-Saharan Africa with data…

269

Abstract

Purpose

The purpose of this paper is to assess the importance of credit access in modulating governance for gender-inclusive education in 42 countries in Sub-Saharan Africa with data spanning the period 2004–2014.

Design/methodology/approach

The generalized method of moments is used as empirical strategy.

Findings

The following findings are established: First, credit access modulates government effectiveness and the rule of law to induce positive net effects on inclusive “primary and secondary education.” Second, credit access also moderates political stability and the rule of law for overall net positive effects on inclusive secondary education. Third, credit access complements government effectiveness to engender an overall positive impact on inclusive tertiary education.

Originality/value

Policy implications are discussed with emphasis on sustainable development goals.

Details

Social Responsibility Journal, vol. 17 no. 8
Type: Research Article
ISSN: 1747-1117

Keywords

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Article
Publication date: 23 August 2019

Simplice Asongu, Oludele Folarin and Nicholas Biekpe

The purpose of this paper is to investigate the stability of demand for money in the proposed Southern African Monetary Union (SAMU).

286

Abstract

Purpose

The purpose of this paper is to investigate the stability of demand for money in the proposed Southern African Monetary Union (SAMU).

Design/methodology/approach

The study uses annual data for the period 1981 to 2015 from ten countries making-up the Southern African Development Community. A standard function of demand for money is designed and estimated using a bounds testing approach to co-integration and error-correction modeling.

Findings

The findings show divergence across countries in the stability of money. This divergence is articulated in terms of differences in cointegration, CUSUM (cumulative sum) and CUSUMSQ (CUSUM squared) tests, short run and long-term determinants and error correction in event of a shock. Policy implications are discussed in the light of the convergence needed for the feasibility of the proposed SAMU.

Originality/value

This study extends the debate in scholarly and policy circles on the feasibility of proposed African monetary unions.

Details

International Journal of Emerging Markets, vol. 15 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 13 March 2017

Bernard Njindan Iyke and Nicholas M. Odhiambo

The purpose of this paper is to examine the validity of the purchasing power parity (PPP) hypothesis for two Southern African countries, namely: Lesotho and Zambia.

1248

Abstract

Purpose

The purpose of this paper is to examine the validity of the purchasing power parity (PPP) hypothesis for two Southern African countries, namely: Lesotho and Zambia.

Design/methodology/approach

The authors utilized four econometric tests to examine the existence of the PPP hypothesis in Lesotho and Zambia. These tests include two unit root tests without structural breaks – the Dickey-Fuller generalized least squares (DF-GLS) test and the Ng-Perron test; and two unit root tests with structural breaks – the Perron test and the Zivot-Andrews test. The authors’ empirical analysis is based on an annual data set with varying time periods. The sample period spanned 1960-2010 and 1955-2010, for Lesotho and Zambia, respectively.

Findings

The authors found that the PPP hypothesis was supported in the case of Lesotho, but rejected in the case of Zambia.

Originality/value

This paper is the first to simultaneously explore the exchange rate policies, trends, and the PPP for these two countries. The implication of this finding is that Lesotho is unlikely to profit immensely from trade and investment arbitrages; whereas Zambia is more likely to profit immensely from trade and investment arbitrage by trading with the USA. Moreover, the authors’ findings indicate that the PPP doctrine may be a useful guide for the exchange rate and other macroeconomic adjustment policies in Lesotho but not in Zambia.

Details

African Journal of Economic and Management Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Available. Open Access. Open Access
Article
Publication date: 11 December 2024

Samuel Tawiah Baidoo, Daniel Sakyi and Emmanuel Buabeng

This paper investigates whether financial sector development promotes economic globalization (EG) using data from 45 African countries.

82

Abstract

Purpose

This paper investigates whether financial sector development promotes economic globalization (EG) using data from 45 African countries.

Design/methodology/approach

Using panel data of the selected African countries, the two-step system generalized method of moments estimation technique which is capable of solving any possible endogeneity problem is employed for the empirical analysis.

Findings

The main finding is that all measures of financial sector development have a significant positive impact on EG in Africa. The results suggest that improving the financial sector development in a holistic manner is key in fostering EG in Africa.

Originality/value

This present paper uses broader measures of EG and financial sector development. Using broader measures of these variables widens the policy scope in terms of policy adoption and implementation.

Details

Review of Economics and Political Science, vol. 10 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Available. 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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Article
Publication date: 13 May 2020

Simplice Asongu, Joseph Nnanna and Paul Acha-Anyi

The purpose of this study is to assess how inclusive education affects inclusive economic participation through the financial access channel.

455

Abstract

Purpose

The purpose of this study is to assess how inclusive education affects inclusive economic participation through the financial access channel.

Design/methodology/approach

The focus is on 42 sub-Saharan African countries with data for the period 2004-2014. The empirical evidence is based on the generalised method of moments.

Findings

The following findings are established. First, inclusive secondary education moderates financial access to exert a positive net effect on female labour force participation. Second, inclusive “primary and secondary school education” and inclusive tertiary education modulate financial access for a negative net effect on female unemployment. Third, inclusive secondary education and inclusive tertiary education both moderate financial access for an overall positive net effect on female employment. To provide more gender macroeconomic management policy options, inclusive education thresholds for complementary policies are provided and discussed.

Originality/value

Policy implications are discussed in the light of challenges of economic development in the sub-region and sustainable development goals.

Details

Gender in Management: An International Journal , vol. 35 no. 5
Type: Research Article
ISSN: 1754-2413

Keywords

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