scholarly journals Remittances and Banking Sector Development in South Asia

2011 ◽  
Author(s):  
Abdullah M. Noman ◽  
Gazi S Uddin
Keyword(s):  
South Asian ◽  
Banking Sector ◽  
National Income ◽  
Asian Countries ◽  
Individual Country ◽  
New Findings ◽  
Banking Sector Development ◽  
Causality Tests ◽  
Remittance Flows ◽  
Domestic Products

The paper investigates the interaction among foreign remittance, banking sector development and GDP in four South Asian nations that export huge pools of labour abroad. Multivariate Granger causality tests, based on error correction models, are employed with data spanning from 1976 to 2005. A key finding of the paper is that remittances and banking sector development influence per capita income in all four South Asian nations. In addition, interactions among the variables are also examined in a panel setting. As in individual country analyses, both remittance and banking sector development have positive and significant influences on the national income of South Asian countries. On the other hand, neither domestic products nor advancement in banking sector have significant impact on the remittance flows. This is new findings of the linkage between remittances and economic development, which may also be evident for countries exporting labour pools.  

scholarly journals Banking Sector Development, Inflation and Economic Growth in Asian Countries: A Panel Causality and Co-Integration Approach

2018 ◽  
Vol 8 (4) ◽  
pp. 384
Author(s):  
Muhammad Imran Nazir ◽  
Rehana Tabassam ◽  
Ifran Khan ◽  
Muhammad Rizwan Nazir
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Vital Role ◽  
Least Square ◽  
Policy Implications ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test

This study investigates the causal relationship between banking sector development, inflation, and economic growth for six Asian countries (Bangladesh, China, India, Malaysia, Pakistan and Sri Lanka) over the period of 1970-2016. Using a Pedroni panel, Kao co-integration test, Panel Granger causality-based Error Correction Model, Dynamic ordinary least square (DOLS), and Fully modified ordinary least square (FMOLS), this study finds that the development of the banking sector generally has a positive relationship with economic growth in the long-run. This results show that in the long-run, monetary policy play a vital role in the economic growth. This study also confirmed the response causality between the indicators of banking sector development and economic growth. Based on the empirical findings, this research provides important policy implications to the banking sector and economic supervisory bodies in order to achieve the long run economic growth.

The dynamics of banking sector and stock market maturity and the performance of Asian economies

2014 ◽  
Vol 30 (1) ◽  
pp. 16-44 ◽  
Author(s):  
Rudra P. Pradhan ◽  
Mak B. Arvin ◽  
Neville R. Norman ◽  
John H. Hall
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Banking Sector ◽  
Panel Cointegration ◽  
Principal Component ◽  
Financial Sector ◽  
Estimation Methods ◽  
Asian Countries ◽  
Content Type ◽  
Causality Tests

Purpose – The purpose of this paper is to examine the nature of causal relations between banking sector maturity, stock market maturity, and four aspects of performance and operation of the economy: economic growth, inflation, openness in trade, and the degree of government involvement in the economy. Design/methodology/approach – The authors look for possible links between the variables by conducting panel cointegration and causality tests, using a large sample of Asian countries over the period 1960-2011. Novel panel data estimation methods allow for robust estimates, using both variation between countries and variation over time. Findings – The study identifies interesting causal links among the variables deriving uniquely from our innovations. In particular, The paper finds that for all regions considered, banking sector maturity and stock market maturity are causally linked, sometimes in both directions. Furthermore, stock market maturity may lead to economic growth, both directly and indirectly through indicators such as inflation and trade openness. The findings also support the notion that economic growth affects the maturity of the stock market in most regions. Practical implications – The results lend support to the notion that a mature financial sector is a key contributor to generating economic growth. Furthermore, economic growth itself has the potential to bring about maturity in the financial sector. Originality/value – The paper uses sophisticated principal-component analysis, panel cointegration, and Granger causality tests, methods not used in this literature before. The method was applied to recent data pertaining to 35 Asian countries – a group of countries that has previously not been adopted in this literature.

scholarly journals Impact of Globalization on Inflation in Selected South Asian Countries: Using Panel Data Techniques

2019 ◽  
Vol IV (II) ◽  
pp. 245-253 ◽  
Author(s):  
Sher Ali ◽  
Abid Ali ◽  
Saleem Khan
Keyword(s):  
Panel Data ◽  
South Asian ◽  
Panel Unit Root Tests ◽  
Asian Countries ◽  
Individual Country ◽  
Pooled Mean Group ◽  
Large Size ◽  
Small Countries ◽  
External Forces ◽  
The Relationship

The present study is about to elucidate the relationship between globalization and inflation in the South Asian Region. This study is carried out for period of 1081-2016 for four south Asian countries. Panel data techniques were put into investigation. Panel unit root tests reported that the variables are of I(0) and I(1). Hausman test revealed that Pooled Mean Group is suitable for estimation i.e. ARDL. Results showed that the globalization forces considerably and significantly determine inflation. In case of individual country it affected inflation a little different; it is highly significant in case of Bangladesh and Sri-Lanka and less effective for India and Pakistan. Bangladesh and SriLanka may get benefit from protectionist policy to control inflation. We can conclude that large countries are less affected i.e. India and Pakistan. Due to large size of the country external forces are inefficient to affect domestic structure considerably. A small country is expected to be affected more, therefore, it is recommended that small countries should adopt the policies of globalization more carefully.

scholarly journals Remittances and Economic Growth Tie in Selected South Asian Countries: A Panel Data Analysis

2019 ◽  
Vol 11 (1) ◽  
pp. 197
Author(s):  
Md. Nezum Uddin ◽  
Mohammed Jashim Uddin ◽  
Md. Joynal Uddin ◽  
Monir Ahmmed
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
South Asian ◽  
Panel Data Analysis ◽  
Past Century ◽  
Asian Countries ◽  
Panel Data Estimation ◽  
Panel Data Estimation Techniques ◽  
Causality Tests ◽  
Heated Debate

Remittances are regarded one of the foremost financial resources globally. Over the past century, in the developing economy, there is a heated debate on the sources of economic growth. The current paper attempts to analyze how economic growth is being impacted by remittance in five selected South Asian countries between the period 1975 and 2017. Estimated results from panel-data estimation techniques exhibit a positive relation between economic growth and remittance in these countries. The results from Granger-causality tests suggest that remittance plays a catalyst role to bring economic growth but economic growth doesn’t play any role to bring remittance while Dumitrescu Hurlin Causality tests found a bi-directional relationship. Important finding of the study is that remittance boost economic growth in South Asian region.

scholarly journals Predicate Offences of Money Laundering and Anti Money Laundering Practices in Bangladesh Among South Asian Countries

2017 ◽  
Vol 12 (3) ◽  
pp. 63-75
Author(s):  
Mohammad Saiful Islam ◽  
Sharmin Akter Eva ◽  
Mohammad Zahed Hossain
Keyword(s):  
Factor Analysis ◽  
Comparative Analysis ◽  
South Asian ◽  
Money Laundering ◽  
Banking Sector ◽  
Model Development ◽  
Asian Countries ◽  
National Board ◽  
Development Factor ◽  
Test Of Hypothesis

Abstract The purpose of the study is to identify the main reasons of money laundering in Bangladesh among the twenty seven predicate offences of money laundering prescribed by Bangladesh Bank and position of Bangladesh among South Asian Countries regarding anti-money laundering practices. Besides, an anti-money laundering model has been developed to combat against money laundering as 14 percent bankers think that only existing know your customer form and transaction profile of banking sector are not enough to detect money laundering. To conduct the study, 91 bankers have been surveyed to take response through structured questionnaire regarding their opinion about the predicate offences of money laundering and sufficiency of existing KYC form of banking sector to detect money laundering. From the responses, factor analysis, test of hypothesis, correlation and regression analysis have been conducted using SPSS software. The study identifies that predicate offences of money laundering can be minimized mainly through scrutinizing the activities of local criminals with foreign network and strict anti-corruption measures through automation in National Board of Revenue, strict policy adoption of criminal detection and support from foreign experts. Besides, regression model shows that only six predicate offences of money laundering explains 87.2 percent of money laundering that should get more emphasize to combat against money laundering. From the comparative analysis, it has been found that Bangladesh in holding better position just after India among six South Asian Countries according to Basel AML Index score. This study provides a complete understanding of the position of Bangladesh in case of money laundering and anti-money laundering practices. The integration of four domains, i.e. AML model development, factor analysis, econometric analysis and comparative analysis of AML index will provide insights to managers and policy makers about the money laundering scenario in Bangladesh.

How Financial Development Affects Economic Growth: Evidence from some SAARC Countries

2020 ◽  
pp. 52-66
Author(s):  
Abu K. ◽  
Monzurul I.U.
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
South Asian ◽  
Banking Sector ◽  
Panel Data Analysis ◽  
Empirical Studies ◽  
Empirical Work ◽  
Unit Root Test ◽  
Annual Data ◽  
Asian Countries

According to Joseph Schumpeter (1911), services provided by financial intermediaries are essential for technical innovation and economic growth. Later, empirical work by Goldsmith (1969) and McKinnon (1973) supported that there were close ties between financial and economic development for a few countries. But numerous other economists, including Robinson (1952) believed that finance was not so important for economic growth; financial development simply follows economic growth. Despite this debate, Levine (1993), among others suggests a positive relationship between financial sector development and economic growth. Moreover, there remains further debate whether the country's financial structure exerts differential impact on economic growth. Empirical studies across the countries (Rajan and Zingales, 1999) suggest that banking sector plays a key role in some countries. In this paper, I intend to investigate whether higher levels of financial development are positively correlated with economic growth using empirical evidence from five South Asian countries namely Bangladesh, India, Nepal, Pakistan and Sri Lanka. I have used Panel data analysis, Linear regression model, Levin-Lin-Chu unit root test, Covariance, Correlation and VIF test based on aggregate annual data from 1993 to 2016. My analysis suggests that development in banking sector has a moderately strong tie to promoting economic growth. The result implies that the policy should focus on banking sector development by enhancing its quality of credit products and offers to private sector as it is the main stimulator for growth in these five South Asian countries.

scholarly journals Drought in South Asia: A Review of Drought Assessment and Prediction in South Asian Countries

Atmosphere ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 369
Author(s):  
Sewwandhi S.K. Chandrasekara ◽  
Hyun-Han Kwon ◽  
Meththika Vithanage ◽  
Jayantha Obeysekera ◽  
Tae-Woong Kim
Keyword(s):  
South Asia ◽  
South Asian ◽  
Large Scale ◽  
Standardized Precipitation Index ◽  
Drought Severity ◽  
Asian Countries ◽  
The South ◽  
Individual Country ◽  
Drought Assessment ◽  
Drought Prediction

South Asian countries have been experiencing frequent drought incidents recently, and due to this reason, many scientific studies have been carried out to explore drought in South Asia. In this context, we review scientific studies related to drought in South Asia. The study initially identifies the importance of drought-related studies and discusses drought types for South Asian regions. The representative examples of drought events, severity, frequency, and duration in South Asian countries are identified. The Standardized Precipitation Index (SPI) was mostly adopted in South Asian countries to quantify and monitor droughts. Nevertheless, the absence of drought quantification studies in Bhutan and the Maldives is of great concern. Future studies to generate a combined drought severity map for the South Asian region are required. Moreover, the drought prediction and projection in the regions is rarely studied. Furthermore, the teleconnection between drought and large-scale atmospheric circulations in the South Asia has not been discussed in detail in most of the scientific literature. Therefore, as a take-home message, there is an urgent need for scientific studies related to drought quantification for some regions in South Asia, prediction and projection of drought for an individual country (or as a region), and drought teleconnection to atmospheric circulation.

Dynamics of banking sector integration in South Asia: an empirical study

2019 ◽  
Vol 12 (3) ◽  
pp. 315-332
Author(s):  
Piyush Pandey ◽  
Sanjay Sehgal ◽  
Wasim Ahmad
Keyword(s):  
South Asian ◽  
Banking Sector ◽  
Trade Integration ◽  
Asian Countries ◽  
The South ◽  
Content Type ◽  
Economic Growth And Development ◽  
The World ◽  
Lending Rates ◽  
Sector Integration

Purpose Banks in the South Asian region are the fulcrum of economic growth and development as they provide means to development credit and working capital, trade and infrastructure finance and are seen as custodians of the trust in the financial system. This paper aims to study the nature of banking sector linkages for the region. Design/methodology/approach The dependence structure between deposits and lending rates individually for the banks of the South Asian countries are studied using time invariant and time varying family of copula functions. The degree of connectedness is further studied by Diebold and Yilmaz methodology. Findings Results indicate poor levels of banking integration in the region as the dependence parameter for both deposits and lending rates was around 0 for the sample countries, thereby confirming poor banking sector integration in the region. Practical implications Policymakers of the region are interested in the co-movements of the interest rates to understand the cross-sector risk management and any systemic risk pressures for the regional economies. Corporates in these countries are scouting out for competitive borrowing rates to lower their cost of capital. Social implications Rationale for examining the banking sector linkages is that the South Asian countries are at different stages of economic growth and development and this region in particular is the fastest growing region in the world and has largely increased its trade integration with the world albeit having lowest levels of intra-regional trade integration. Originality/value This is a first of a kind of studies to examine the banking sector linkages in South Asia.

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