scholarly journals Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

2020 ◽  
Vol 21 (2) ◽  
pp. 174-186
Author(s):  
Tunjung Sekar Laksmi Pandhit ◽  
Malik Cahyadin
Keyword(s):  
Credit Card ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Debit Card ◽  
Quality Of Institutions ◽  
Domestic Credit ◽  
Asean Countries

Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the  lack  of  access  for  public  to  formal  financial  institutions.  Moreover,  there  is  an  empirical  gap  of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

scholarly journals INTRA ASEAN-5 CAPITAL FLOWS: DO THEY REPRESENT NEOCLASSICAL BELIEF OR LUCAS PARADOX?

2015 ◽  
Vol 18 (2) ◽  
pp. 157-182
Author(s):  
Nurul Qolbi ◽  
Akhmad Syakir Kurnia
Keyword(s):  
Human Capital ◽  
Capital Flows ◽  
Capital Flow ◽  
Marginal Product ◽  
Host Countries ◽  
Poor Countries ◽  
Quality Of Institutions ◽  
Marginal Product Of Capital ◽  
Asean Countries

In the neoclassical belief, capital flows downhill from rich to poor countries as a consequence of capital endowment variation. In contrast to the neoclassical belief, Lucas found evidence that capital tends to flow uphill. This paper investigates the intra ASEAN-5 capital flows. Using panel estimation, we found that marginal product of capital, human capital, total factor productivity growth, and the quality of institutions appear as determinants for the capital flow from Indonesia, Malaysia, Philippines, and Thailand to Singapore as a host country. On the contrary, the capital flow from Singapore to other ASEAN countries as host countries is encouraged only by the quality of institutions, human capital as well as per capita GDP. The result shows that Lucas variables emerge as determinants for the uphill and downhill capital flow in ASEAN-5. In the meantime, marginal product of capital that represents neoclassical variable appears as the determinant for uphill capital flow from other ASEAN countries to Singapore. This gives significant insight that Lucas variables emerge as companion to the neoclassical variables in explaining intra ASEAN capital flow

Institutional determinants of financial inclusion: evidence from world economies

2020 ◽  
Vol 19 (2) ◽  
pp. 217-228
Author(s):  
Tarek Eldomiaty ◽  
Rasha Hammam ◽  
Rawan El Bakry
Keyword(s):  
Credit Card ◽  
Financial Institution ◽  
Panel Data Analysis ◽  
Political Stability ◽  
Financial Inclusion ◽  
Content Type ◽  
Global Database ◽  
Institutional Determinants ◽  
World Governance Indicators ◽  
The Impact

Purpose Financial inclusion is an approach for mobilizing saving and facilitating investments that help promote economic development and pave the way for sustainable development. This paper aims to examine the impact of world governance indicators (WGIs) on the improvement of financial inclusion across world economies. Design/methodology/approach This paper uses the global database of financial inclusion indicators (global findex) for the years 2011, 2014 and 2017. The WGIs are used as proxies for the effects of governmental institutional arrangements. Using panel data analysis, a fixed generalized linear model is estimated for four common financial indicators; namely, borrowed from a financial institution, saved at a financial institution, credit card and debit card ownership. Findings The empirical results reveal that control of corruption, government effectiveness, political stability and voice and accountability are the significant WGIs that influence financial inclusion significantly. Originality/value This paper contributes to the literature in two ways. First, this paper offers validating the results previously reported in related studies. Second, this paper offers robust estimates of the effects of the institutional WGIs on the promotion of financial inclusion.

scholarly journals Traditional Values and Institutional Quality

2021 ◽  
Vol 17 (3) ◽  
pp. 38-58
Author(s):  
Necati Berk ◽  
◽  
Nurbek Madmarov ◽  
Keyword(s):  
Rule Of Law ◽  
Institutional Quality ◽  
Political Stability ◽  
Cultural Dimensions ◽  
Traditional Values ◽  
Positive Effects ◽  
Linear Relationships ◽  
Quality Of Institutions ◽  
The World

Why do similar economic and political institutions function differently in various cultures? This paper tries to identify potentially important factors related to the institutional quality. We investigate the relationship between cultures, cultural dimensions: non-tradition in particular, and formal institutions to explain differences in the quality of institutions around the world. We use a measure of traditional values, structured by Inglehart and Baker, from the World Values Survey, to extend the literature on the determinants of institutions’ quality. We show that differences in traditional values are suggestive to explain differences in the quality of institutions across countries. The OLS method is utilized in order to analyze the factors of institutional quality in sixty countries in 2010–2014. In this study, the OLS models are employed in order to understand the key factors of institutional differences among countries in the period of 2010–2014. The empirical model results show that (i) non-tradition is a reliable significant variable with positive contributions on six institutional quality variables, (ii) urbanization has unexpected negative effects on some institutional quality indicators like rule of law, political stability and voice/accountability. However, it has meaningful contribution to control of corruption in the countries, (iii) economic development have increasing impacts on the majority of the institutional quality variables, (iv) while education has positive effects on government effectiveness, political stability and regulation quality, it has negative unexpected impacts on rule of law and voice/accountability, (v) openness has only effects on corruption and political stability, (vi) there are non-linear relationships between dependent variable(s) and independent variables rather than linear relationships

scholarly journals Governance and Tax Revenue in Asean Countries

2015 ◽  
Vol 6 (2) ◽  
pp. 76-88
Author(s):  
Makmun Syadullah
Keyword(s):  
Law Enforcement ◽  
Positive Impact ◽  
Descriptive Analysis ◽  
Political Stability ◽  
Tax Revenue ◽  
Negative Effects ◽  
Asean Countries ◽  
And Control ◽  
The Relationship

Tax revenue is influenced by many factors. Existing studies reveal that political stability, level of corruption, quality of the policy, income per capita, share of agriculture to the GDP, and market openness are some of the factors influencing tax revenue. This study aims to analyze the influence of governance by using some indicators, such as political stability, government effectiveness, quality of regulation, law enforcement accountability and control on corruption in tax area through empirical analysis of ASEAN countries. Descriptive analysis and causality methods are employed in this study. causality method is used to determine the relationship between observed variables using panel regression. The results of the study indicate that the controlon corruption, voice and accountability and political stability variables have significant negative effects on the tax ratio, while rule of law and quality of regulatory variables have positive impact on the tax ratio.

Behavior Analysis of Customer Churn for a Customer Relationship System

2019 ◽  
Vol 27 (1) ◽  
pp. 111-127 ◽  
Author(s):  
Li Chen Cheng ◽  
Chia-Chi Wu ◽  
Chih-Yi Chen
Keyword(s):  
Credit Card ◽  
Global Market ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Temporal Abstraction ◽  
Customer Churn ◽  
Time Period ◽  
Credit Card Market ◽  
Domestic Credit

This article describes how the bank industry in Taiwan must function in today's tough and fiercely competitive domestic credit card market and subdued global market. Banks are increasingly emphasizing the importance of retaining customers in order to sustain market share and remain profitable. This study proposes a new model which local banks can use to detect potential customer churn and provide an early warning indicator of problems that could lead to loss of customers. The model incorporates a customer relationship management database with a built-in time factor and applied temporal abstraction to represent data for a specific time period as defined by experts. Association rule mining is applied to analyze and detect abnormal customer behavior. The results of this article indicate that the system is relatively effective in detecting customer churn early on and thus helpful at assisting banks to address issues before they escalate. Furthermore, the tested rules are further scrutinized by experts to establish the relationship between the defined rules and management. This study provides an expert system for banks to assess the quality of their marketing campaigns and reestablish faltering customer relationships.

scholarly journals Comparing Digital Finance in the UK, US, India and Nigeria

e-Finanse ◽  
2020 ◽  
Vol 16 (4) ◽  
pp. 1-11
Author(s):  
Peterson K. Ozili
Keyword(s):  
Private Sector ◽  
Credit Card ◽  
Developed Countries ◽  
Development Indicators ◽  
Debit Card ◽  
The Us ◽  
Domestic Credit ◽  
Using Data ◽  
The Uk ◽  
Credit Card Usage

Abstract This paper examines digital finance usage in the UK, US, India and Nigeria. Using data from the global financial development indicators, the findings reveal that the UK and US have higher digital finance usage than India and Nigeria. The US has higher credit card usage compared to the UK while the UK has higher debit card usage compared to the US. Also, Nigeria has higher debit card usage than India. The findings also show that higher debit card usage is correlated with higher domestic credit to the private sector in the US and Nigeria. Higher credit card usage is correlated with lower domestic credit to the private sector, lower private credit by deposit money banks, and fewer remittances to the UK. The implication of the findings is that policy makers in developing countries should develop the digital finance and payment systems in their countries to close up the wide gap in digital finance adoption between developing and developed countries.

scholarly journals The impact of institutional quality on economic growth: A comparative analysis of the EU and non-EU countries of Southeast Europe

2020 ◽  
Vol 65 (225) ◽  
pp. 163-181
Author(s):  
Marija Radulovic
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Southeast Europe ◽  
Eu Countries ◽  
Regulatory Quality ◽  
Quality Of Institutions ◽  
The Impact ◽  
The Eu

The quality of institutions and its impact on economic growth has become more important in recent years, especially in transition countries that must reform their institutions to create a market economy and meet the preconditions for joining the EU. This is the case with the countries of Southeastern Europe, some of which are already EU members, while others are in the process of joining the EU. This paper examines the effects of institutional quality on the economic growth of South- East Europe and compares these effects in EU and non-EU countries for the period 1996-2017, using Worldwide Governance Indicators (WGI) to measure the quality of institutions and the GDP growth rate. The panel autoregressive distributed lag (ARDL) approach is used to analyse the relationship between institutional quality and economic growth. The results show that in EU countries there is a long-run relationship between institutional quality and economic growth for all significant variables, while in the non-EU countries only government effectiveness, political stability and absence of violence, regulatory quality, and voice and accountability are statistically significant. Furthermore, in EU countries there is no short-run relationship between institutional quality and economic growth, while in the non-EU countries of SEE, regulatory quality and voice and accountability are significant.

scholarly journals Determinants Du Developpement Financier Dans Les Pays De La Zone Franc Cfa: Le Role De La Qualite Des Institutions

2016 ◽  
Vol 12 (28) ◽  
pp. 285
Author(s):  
Kos à Mougnol Alice ◽  
Pr Kamajou François
Keyword(s):  
Financial Development ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
Institutional Factors ◽  
Dynamic Panel ◽  
Franc Zone ◽  
Institutional Convergence ◽  
Cfa Franc

This paper aims at analysing the role of the quality of institutions (institutional factors) on financial development within the fourteen countries of the CFA Franc zone. For that purpose, the Pool Mean Group (PMG) method is used in order to estimate a linear model in dynamic panel data over the period 1996-2011. Findings show that the quality of some institutions (corruption, political stability, quality of regulation…) conditions or affects the improvement level of financial system of the above-listed countries. To contribute to the emergence of better developed finance and of course more productive, the paper stands for an “institutional convergence” as one of the assets of financial development in the CFA Franc countries.

scholarly journals The Link between Quality of Governance and Stock Market Performance: International Level Evidence

2017 ◽  
Vol 6 (1) ◽  
pp. 78 ◽  
Author(s):  
Isaac Boadi ◽  
Hayford Amegbe
Keyword(s):  
Stock Market ◽  
Market Performance ◽  
Political Stability ◽  
Fixed Effect Model ◽  
International Markets ◽  
Policy Implications ◽  
Stock Market Performance ◽  
Quality Of Governance ◽  
And Control

The present study investigates the link between quality of governance and stock market performance within the context of international markets. The study employed the Fixed Effect model using 23 countries with complete relevant data for the period spanning from 1996 to 2014. The study reveals that, quality of governance as captured by Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption significantly affect stock market performance. Varying effects are produced when the countries are decomposed into income classifications. What is more, the findings and suggestions of this study suggest that quality of government significantly affect foreign direct investment and could have interesting policy implications. The main value of this paper is to examine the link between quality of governance and stock market performance within the context of international markets.

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