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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.
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John M. Kagochi and Lesley M. Mace
The purpose of this paper is to analyze factors that determine the demand for single family houses in Alabama urbanized areas, commonly referred to as metropolitan statistical…
Abstract
Purpose
The purpose of this paper is to analyze factors that determine the demand for single family houses in Alabama urbanized areas, commonly referred to as metropolitan statistical areas (MSAs).
Design/methodology/approach
This paper builds and estimates a housing demand model that incorporates both macroeconomic and housing‐related variables using a panel time series data for 1988‐2007. The study is different from past research, which mainly focuses on housing demand at the state or national level, by looking at the factors influencing demand for housing at the MSAs level.
Findings
The study finds that demand for new single family houses in Alabama MSAs is influenced by both national economic factors and local factors. Population growth and increased sale of existing houses increase demand for new single family houses in the MSAs. On the contrary, increased cost of building a new house, higher real mortgage interest rates and unemployment rates are found to reduce the demand for new houses.
Originality/value
This study is one of the few studies that focus on housing demand at the local level, particularly in the US housing market. Since demand for housing will always be local and therefore influenced mostly by local conditions, the result reveal unique dynamics that are specific to the MSAs.
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Fredrick Chege, Hassan F. Gholipour and Sharon Yam
Given the coincidental and sustained rise in house prices and foreign capital flows in Kenya, this study aims to understand whether a long-run relationship exists between real…
Abstract
Purpose
Given the coincidental and sustained rise in house prices and foreign capital flows in Kenya, this study aims to understand whether a long-run relationship exists between real diaspora remittances and real house prices.
Design/methodology/approach
This study uses data from 2004-Q1 to 2020-Q4 and applies an autoregressive distributed lag model for estimation.
Findings
The results indicate that a positive and significant relationship exists between real remittances and real house prices in Kenya in the long run.
Originality/value
To the best of the authors’ knowledge, there is no study exploring the relationship between real remittance inflows and house prices in Kenya, after controlling for other key macroeconomic determinants of house prices. This study addresses this research gap.
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Kirti Sood, Prachi Pathak, Jinesh Jain and Sanjay Gupta
The primary objective of the study is to discover the most prominent criteria and sub-criteria among environmental issues, social dimensions and corporate governance factors that…
Abstract
Purpose
The primary objective of the study is to discover the most prominent criteria and sub-criteria among environmental issues, social dimensions and corporate governance factors that may impact individual equity investors' investment decisions.
Design/methodology/approach
The present study collected data from 438 individual equity investors from the North Indian region. To achieve the objectives of the study, a fuzzy analytic hierarchy process (Fuzzy AHP) was applied. The key considerations of the study were environmental, social and governance (ESG) factors.
Findings
The governance criterion was discovered to be the most significant factor influencing individual equity investors' investment decisions among the three ESG factors, followed by environmental criteria, while social criteria were shown to be the least influential.
Research limitations/implications
The present study solely looked at ESG issues as drivers of stock investors' investment decisions. In the current world, however, many other factors, including behavioral biases, accounting information, ownership structure and fundamental analysis, can have a substantial influence on investors' investment decisions.
Practical implications
The study's findings widen the theoretical contribution in the field of responsible investment by asserting how ESG factors influence investors' investment decisions in the equity market. From a practical standpoint, this study applies to retail and institutional investors, portfolio managers, financial advisors, market regulators, corporations and society at large.
Originality/value
To the best of authors knowledge, no attempt has been made to prioritize the ESG issues that impact the investment decisions of individual equity investors. Ergo, this study contributes to the existing literature on socially responsible investment.
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The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA).
Abstract
Purpose
The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA).
Design/methodology/approach
The paper uses the World Bank country-level data from 20 SSA countries for the year 2014.
Findings
The empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries.
Research limitations/implications
Some countries were excluded from the final analysis due to lack of data.
Practical implications
In the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region.
Originality/value
To the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.
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James Osei Mensah, Seth Etuah, Emmanuel Fiifi Musah, Frederick Botchwey, Loretta Oppong Adjei and Kofi Owusu
This study aims to analyse consumers' preferences for domestic chicken cut parts and the premium they are willing to pay for the various parts using data from a contingent…
Abstract
Purpose
This study aims to analyse consumers' preferences for domestic chicken cut parts and the premium they are willing to pay for the various parts using data from a contingent valuation survey of individual chicken meat consumers in the Kumasi Metropolitan Area of Ghana.
Design/methodology/approach
The willingness to pay premiums are obtained using the double-bounded dichotomous choice approach. Determinants of the consumers' willingness to pay amounts are identified through a multivariate Tobit regression analysis.
Findings
The study finds that the wing is the most preferred chicken part by the consumers followed by the thighs. All consumers who express interest in a particular domestic chicken cut part are willing to pay a premium. Age, sex, years of formal education, household size and income level of the consumers as well as convenience, product availability and perceived wholesomeness of the product are identified as the key factors that influence the willingness to pay amounts.
Research limitations/implications
The findings and recommendations of this study could serve as a guide to domestic poultry meat producers and investors in Ghana and other developing countries on how to process or package the meat for the market or consumers. This could further contribute to policy formulation regarding the development of the domestic poultry meat industry.
Originality/value
The uniqueness of this study is seen in the contributions it makes to the literature on consumer preferences and willingness to pay for chicken cut parts from a developing country perspective where the market for these products is virtually non-existent.
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