scholarly journals Determinants of Domestic Credit to the Private Sector in Ghana: Application of Vector Auto-Regressive Method

2019 ◽  
Author(s):  
William Obeng-Amponsah ◽  
Zehou Sun ◽  
Hazimi Bimaruci Hazrati Havidz ◽  
Elias Augustine Dey
Keyword(s):  
Private Sector ◽  
Domestic Credit ◽  
Auto Regressive ◽  
Regressive Method

scholarly journals Do Remittances Enhance Financial Development in Transitional Markets?

2019 ◽  
Vol 22 (4) ◽  
pp. 73-89
Author(s):  
Kunofiwa Tsaurai ◽  
Patience Hlupo
Keyword(s):  
Human Capital ◽  
Stock Market ◽  
Private Sector ◽  
Financial Development ◽  
Positive Influence ◽  
Transitional Economies ◽  
Human Capital Development ◽  
Domestic Credit ◽  
Capital Development ◽  
Market Capitalisation

The paper explored (1) the impact of remittances on financial development and (2) whether the interaction between remittances and human capital development had an influence on financial development in transitional economies using the dynamic GMM approach, with data ranging from 1996 to 2014. Remittances were found to have had a non‑significant positive influence on financial development in transitional economies when stock market turnover, stock market value traded, domestic credit to the private sector by banks, and public bond sector development were used as measures of financial development. When stock market capitalisation, domestic credit to the private sector by financial sector, and private bond sector development were used as measures of financial development, remittances had a non‑significance negative effect on financial development. Using all other measures of financial development except stock market capitalisation (which produced a negative sign), the interaction between remittances and human capital development had an insignificant positive influence on financial development. Transitional economies are therefore urged to avoid over‑relying on remittance inflow and human capital development as sources of financial development.

scholarly journals Does Financial Sector Development Hinders or Promotes Human Development in Nigeria? Asymmetric and Causality Analysis

2021 ◽  
Vol 07 (08) ◽  
Author(s):  
Olusola Olakunle OGUNJINMI ◽  
Keyword(s):  
Human Development ◽  
Financial Sector ◽  
Causality Analysis ◽  
Causality Test ◽  
Financial Sector Development ◽  
Distributed Lag ◽  
Domestic Credit ◽  
Auto Regressive ◽  
The Relationship ◽  
Reserve Ratio

This study examines the relationship between financial sector development and human development in Nigeria for the period of 1986 to 2018 using Non-linear Auto Regressive Distributed Lag (NARDL) and Toda Yamamoto Granger non-causality approaches. Empirical findings that emanated from the study reveal the existence of nonlinear relationship between financial sector development indices and human development in Nigeria. Further, feedback from the Toda Yamamoto Granger non-causality test shows that money supply constitutes the only variable exerting bidirectional nexus with human development. Conversely, bank deposit appeared to have a unidirectional relationship with human development whereas other indicators like domestic credit to GDP and bank penetration have no causal relationship with human development within the period of study. Prominent policy implication derivable from the empirical analyses suggests the need for the monetary policy authority to place more emphasis on quantity-based monetary tools such as liquidity ratio and reserve ratio for managing the economy.

Output impacts of the interaction between foreign direct investment and domestic credit

2017 ◽  
Vol 34 (3) ◽  
pp. 331-343 ◽  
Author(s):  
Hong Chen ◽  
Baljeet Singh
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Generalized Method Of Moments ◽  
Panel Cointegration ◽  
Pacific Island ◽  
Credit Expansion ◽  
Content Type ◽  
Domestic Credit ◽  
Moments Estimators

Purpose This paper aims to examine the link among foreign direct investment (FDI), domestic credit expansion and economic growth for six Pacific Island countries. Design/methodology/approach Using panel data over 1982-2011, the authors relate the interaction between domestic credit to private sector and FDI to its impacts on output. This study makes use of panel cointegration and the generalized method of moments estimators. Findings The empirical results generally show that FDI and domestic credit to private sector serve as substitutes to promote output in these small economies. Such findings are robust to a number of sensitivity tests. Originality/value This study contributes to the literature by examining the interaction between domestic credit to private sector and FDI and its impact on output in small Pacific Island economies.

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