Search results

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”).

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.

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.

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.

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.

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

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).

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

Agriculture is one of the oldest socio-economic activities. It involves growing valuable plants and animals for human existence. Sustainable agriculture should be understood in light of the global sustainable development movement, which emphasizes balancing environment, society and economics. With the ongoing effects of the COVID-19 pandemic and the recent war between Russia and Ukraine, sustainable agriculture can help eliminate food insecurity caused by food shortages and agricultural sector disruptions. Recently, investors, practitioners, academicians, researchers, regulators and financiers are increasingly interested in using Islamic financing products and qualified Shari'ah-compliance contracts to promote sustainable agriculture. Many Organization of Islamic Cooperation (OIC) states still rely on agriculture for socioeconomic growth. These countries are major contributors to Islamic financial growth. This study assesses Islamic finance’s role in promoting sustainable agriculture in selected OIC countries. The researchers use qualitative methods and meta-analysis data to determine the constraints and benefits of implementing Islamic financial products for sustainable agriculture. This study suggests that OIC state governments should promote sustainable agriculture. OIC member states have different achievements relating to their sustainable agriculture. Based on socio-economic factors, agriculture policies or plans, leadership and political will, Islamic finance products and Shari'ah-compliance contracts are found underutilized in meeting sustainable agriculture and sector stakeholders’ needs. A solid Islamic financial framework for sustainable agriculture, good governance and improved agriculture policy are needed.

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.

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.

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.

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.

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.

Due to its contribution to poverty reduction, which is one of the United Nations’ Sustainable Development Goals, inclusive finance is an issue of discussion. By using a bibliometric analysis approach, this study conducts performance analysis and keyword co-occurrences analysis under VOS viewer to synthesize the characteristics and essential dimensions of financial inclusion in Asia. This research studies 1,072 articles contributed by 1,928 authors, during the years 2005–2022. Numerous figures and networks are provided in order to comprehend publication trends, influential authors and their affiliations and countries, influential publications, and keyword occurrences. Six clusters were discovered, and financial inclusion is in the same cluster as financial literacy and financial service. This research will provide valuable insights for governments, regional authorities, and academic researchers, enabling them to enhance their comprehension of Asian financial inclusion and identify prospective avenues for future research. Ahead of this research, a comprehensive bibliometric analysis of financial inclusion in Asian countries has not been conducted, as far as the authors’ knowledge goes. The study offers a comprehensive overview of financial inclusion in Asia and reveals insights into the field’s crucial messages. Future researchers can use this knowledge to obtain a deeper understanding of the field.