scholarly journals SMALL AND MEDIUM-SCALE ENTERPRISE FINANCING AND INDUSTRIAL GROWTH IN AFRICA

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Uju Regina Ezenekwe ◽  
Amaka G. Metu ◽  
Chekwube Vitus Madichie
Keyword(s):  
Interest Rates ◽  
Time Series Data ◽  
Negative Impact ◽  
Series Data ◽  
Easy Access ◽  
Microfinance Institutions ◽  
Access To Finance ◽  
Industrial Growth ◽  
Medium Scale ◽  
The Impact

Small and medium-scale enterprises (SMEs) have been identified as the engine and foundation of rapid industrial growth. Unfortunately, the potentials of the SMEs to accelerate the process of industrialization in Africa have been undermined by numerous constraints, prominent among which is lack of access to finance. The study examined the impact of SMEs financing on industrial growth in Africa using panel time-series data from all the 15 ECOWAS countries from 1986 – 2016. In implementing the panel data regression, the study engaged in panel unit root using the LLC, IPM, Fisher-type ADF and PP tests, and co-integration tests using the Kao residual-based and Johansen- Fisher combined tests. The study also placed adequate control for any unobserved heterogeneity among the ECOWAS countries, using a well-specified fixed effect in exploiting the time dimension present in the dataset. The result shows that SMEs output significantly affects industrial growth positively while the Deposit Money Banks’ credit to SME’s do not have significant impact on industrial performance during the review period. The result further reveals that interest rates have a significant negative impact on industrial growth. Based on these findings, the study recommends that monetary authorities in ECOWAS countries can encourage easy access to finance by making available interest-free loans using microfinance institutions.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

scholarly journals Daya Tahan Sektor Rumah Tangga Dalam Rangka Menjaga Stabilitas Sistem Keuangan

2018 ◽  
Vol 5 (1) ◽  
pp. 65
Author(s):  
Ita Rakhmawati ◽  
Suhadi Suhadi
Keyword(s):  
Interest Rates ◽  
Time Series Data ◽  
Negative Impact ◽  
Financial System ◽  
Series Data ◽  
Price Stability ◽  
Economic Stability ◽  
Independent Variables ◽  
High Inflation ◽  
The Stability

The crisis in 1997 is the image of the high rise in inflation in Indonesia. The phenomenon of inflation when it reached 82.40% (Anas, 2006). The early mid-1998 also experienced a weakening of the rupiah against the dollar. Condition stable economy is the desire of each country in comparison with the state of the economy has always fluctuated. Economic stability will create an atmosphere conducive economy. stable climatic conditions in the expected level of welfare is the purpose in each country. One of the efforts to maintain economic stability is through monetary policy. For example, with economic growth, maintain price stability (inflation), the achievement of the balance of payments and the reduction of unemployment (Natsir, 2008). The stability of the financial system of a country of which reflected their price stability, in the sense that there are a great price that can be harmful to society, both consumers and manufacturers that will damage the joints of the economy. However, the implementation of the policy, Bank Indonesia as the monetary authority uses monetary variables such as interest rates and the money supply to cope with economic shocks such as inflation. Besides the need for the government’s role in maintaining the rupiah to avoid turmoil in the economy. The importance of inflation control based on the consideration that the high inflation and unstable negative impact on socio-economic conditions of society. Among the high inflation will cause a decline in the real income of the community so that the standard of living of the people down and eventually make everyone, especially the poor get poorer. From one of the effects of inflation are so wide will impact people’s demands to meet the needs of more and more difficult. Their continuousprice increases being offset by rising income of the communities, it can make sure the Indonesian state would worsen. As a result many people’s needs can not be met, so many things that must be met by way of credit. The number of community needs that must be met will cause world of opportunities for banks to offer credit readily available to meet the needs. The third object of research above (inflation, poverty, and credit) does affect the stability of the financial system? In this study using secondary data from the Badan Pusat Statistik (BPS) and Bank Indonesia (BI) with time series data from the years 2007-2015. The process of data analysis was performed using OLS regression with Eviews 8.0. Based on research, if only partial test of the poverty variable significantly affect the stability of the financial system amounted to 2,023 with α = 10%. Meanwhile, two other variables (inflation and poverty) is not significant to the stability of the financial systemMeanwhile, two other variables (inflation and poverty) is not significant to the stability of the financial system. While the value of R-Square (0.629900), indicating that the three independent variables / free consisting of inflation, poverty and credit simultaneously have the effect that make the stabilization of the financial system increases or decreases. That is jointly independent variables (inflation, poverty and loans) contributed / effect of 62.9% against the stability of the financial system. The rest is the influence of other factors beyond the three independent variables studied.

scholarly journals THE IMPACT OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH IN NIGERIA: A DYNAMIC ECONOMETRIC APPROACH

2021 ◽  
pp. 16-40
Author(s):  
Comfort Akinwolere Bukola ◽  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Exchange Rate Volatility ◽  
Series Data ◽  
Balance Of Trade ◽  
Econometric Approach ◽  
The Impact

This study examined the impact of exchange rate volatility on economic growth in Nigeria. The study covers the period of 1986 to 2019. Using time series data, the methodology adopted is the Vector Error Correction Mechanism to explore the impact of exchange rate volatility on the selected macroeconomic variables. The result indicated that exchange rate volatility has a significant impact on economic growth, specifically it has a positive impact on inflation, unemployment and balance of trade. On the other hand it has a negative impact on economic growth and investment. The recommendations made include; that relevant authorities should try to avoid systematic currency devaluations in order to maintain exchange rate volatility at a rate that allows adjustment of the balance of payments.

Impact of Fiscal Policy on Agricultural Output in Nigeria

2019 ◽  
Vol 9 (7) ◽  
pp. 1428 ◽  
Author(s):  
Adedoyin Isola LAWAL ◽  
Ernest Onyebuchi FIDELIS ◽  
Abiola Ayoopo BABAJIDE ◽  
Barnabas O. OBASAJU ◽  
Oluwatoyese OYETADE ◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Negative Impact ◽  
Capital Expenditure ◽  
Research Work ◽  
Estimation Method ◽  
Series Data ◽  
Agricultural Output ◽  
The Impact

This study examines the impact of fiscal policy on agricultural output in Nigeria using the most recent official data. The metrics for fiscal policy is government capital expenditure and custom duties on fertilizer. The study used annual time series data obtained from CBN annual statistical bulletin, NCS, and FIRS which was found to be stationary at the order of I(1) and I(0). The order of unit root test led to the use of ARDL estimation method employed in the empirical analysis of this research work. The study found evidence of both short and long run relationship between the variables (VAO, GEX, IDMF, and ACGSF) using both Johansen co-integration and ARDL Bounds test. Although government expenditure (GEX) to agricultural sector was found to be statistically insignificant which recommend that government should increase agriculture capital expenditure to ensure that its contribution is significant. Consequently, custom duties on fertilizer (IDMF) was found to be negatively signed and significant indicating a negative impact on agricultural output. This demands that the policy makers should be prudent in the use of fiscal policy instrument in achieving its desired objective.

Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State

2017 ◽  
Vol 18 (2) ◽  
pp. 365-378 ◽  
Author(s):  
Imtiaz Arif ◽  
Tahir Suleman
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Negative Impact ◽  
Stock Exchange ◽  
Series Data ◽  
Front Line ◽  
Long Run ◽  
Factor Index ◽  
The Impact

This article investigates the impact of prolonged terrorist activities on stock prices of different sectors listed in the Karachi Stock Exchange (KSE) by using the newly developed terrorism impact factor index with lingering effect (TIFL) and monthly time series data from 2002 (January) to 2011 (December). Johansen and Juselius (JJ) cointegration revealed a long-run relationship between terrorism and stock price. Normalized cointegration vectors are used to test the effect of terrorism on stock price. Results demonstrate a significantly mixed positive and negative impact of prolonged terrorism on stock prices of different sectors and show that the market has not become insensitive to the prolonged terrorist attacks.

scholarly journals The Impact of Remittances on Domestic Investment in Developing Countries: Fresh Evidence From the Asia-pacific Region

2018 ◽  
Vol 9 (2) ◽  
pp. 193-211 ◽  
Author(s):  
Le Thanh Tung
Keyword(s):  
Developing Countries ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Asia Pacific ◽  
Series Data ◽  
Pacific Region ◽  
Domestic Investment ◽  
Asia Pacific Region ◽  
The Impact

Despite the sharply increasing remittances in developing countries (especially in the AsiaPacific region), the relationship between remittances and domestic investment in recipient countries has not been fluently evidenced. This paper aims to fill the empirical gap in the Asia-Pacific region by investigating the impact of remittances on domestic investment with a sample including nineteen developing countries based on time series data from 1980 to 2015. However, our findings contradict some evidence from other regions. The results robustly confirm that remittances have a negative impact on domestic investment in these countries. Our results also indicate that the annual GDP per capita growth, official development assistance, domestic credit, gross saving, and inflation have a positive impact on domestic investment, however, we conclude that the impact of trade openness on domestic investment has a negative sign in the study period. The paper also provides some policy suggestions with regard to remittance flows in this region.

scholarly journals Assessing the Impact of Operational Flaws on the Performance of Microfinance Institutions in Ghana

2020 ◽  
Vol 7 (1) ◽  
pp. 37
Author(s):  
Adjei Gyamfi Gyimah ◽  
Annette Serwaa Agyeman ◽  
Solomon Adu-Asare
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Interest Rates ◽  
Negative Impact ◽  
Microfinance Institutions ◽  
Credit Risk Management ◽  
Overall Performance ◽  
The Impact ◽  
And Training ◽  
Regulatory Challenges

Microfinance institutions contribute significantly to the development of a country, and many of these institutions are found in most developing countries including Ghana. However, many challenges have been alleged to stifle the efforts of microfinance companies in their attempt to make their all-important contribution to the development of nations. This study explored the effect of operational flaws on the performance of microfinance institutions in Ghana. The results discovered flaws and challenges associated with the operations of the MFIs in many areas including corporate governance, credit risk management, credit administration, regulatory challenges, and training programs. The study also revealed that such flaws and challenges do harm the overall performance of the MFIs. Based on the findings, it is recommended that MFIs put in place a well-composed and resourceful credit committee to perform the duty of credit risk management in the institutions. The institutions could also reduce their interest rates to encourage their clients to apply for more loans. Lastly, it is recommended that the MFIs take all necessary steps to ensure that they reduce the flaws and challenges they face to mitigate the negative impact of such deficiencies on their performance.

Phases 1 and 2 of Covid-19 Epidemic in the Three Geographical Areas of Italy: An Estimation of Italian Government Measures Based on a Bayesian Changepoint Detection Method

2020 ◽  
Author(s):  
Maria Laura Manca ◽  
Francesco Russo ◽  
Vladimir Georgiev ◽  
Stefano Taddei
Keyword(s):  
Time Series Data ◽  
Detection Method ◽  
Negative Impact ◽  
Phase 1 ◽  
Series Data ◽  
Phase 2 ◽  
Slowing Down ◽  
Changepoint Detection ◽  
The Government ◽  
The Impact

Background: Based on data from the Ministry of Health, which highlighted the earlier onset of Covid-19 epidemic in Italy, compared with the Europe, we would like to present a statistical elaboration on the impact of measures taken by the Government, during the phase 1 and the start of phase 2. Methods: After the implementation of a Bayesian changepoint detection method, we looked for a best fit model, based on the first part of time series data, in order to observe the progress of the data in the presence and absence of the restriction measures introduced. Results: Both the implementation of changepoint detection method and the analysis of the curves showed that the decree that marked the start of lockdown has had the effect of slowing down the epidemic by allowing thestart of a plateau between 21 and 25 March. Moreover, the decree that decided the beginning of phase 2 on 4 May did not have a negative impact. Conclusion: This statistical analysis supports the hypothesis that stringent measures decreased hospitalization, thanks to a slowing down in the evolution of the epidemic compared with what was expected.  

Money Supply and Private Sector Funding in Nigeria: A Multi-Variant Study

2020 ◽  
Vol 4 (1) ◽  
pp. 24-41
Author(s):  
Zaagha Alexander Sulaiman
Keyword(s):  
Private Sector ◽  
Central Bank ◽  
Interest Rates ◽  
Money Supply ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Medium Scale ◽  
Integration Test ◽  
Causality Tests

This study examined the effect of money supply on private sector funding in Nigeria. The purpose of the study was to examine the extent to which monetary policy affect private sector funding in Nigeria. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1985-2018. Credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector was used as dependent variables while narrow money supply, broad money supply, large money supply, private sector demand deposit was used as independent variables. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings revealed that money supply explains 82.1 percent variation on credit to core private sector, 85.2 percent and 23.4 percent of the variation in credit to private sector and credit to small and medium scale enterprises sector. The study conclude that money supply has significant relationship with credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector. From the findings, the study recommends that Central Bank of Nigeria should induce the variations of the amount of money changes through the nominal interest rates. That the monetary authorities should ensure adequate quantity of money supply that positively affect private sector funding in Nigeria.

scholarly journals Impacts of climate change on agricultural production in Nepal: Case of Kavre and Jumla districts

2014 ◽  
Vol 2 ◽  
pp. 43-50
Author(s):  
K.S. Pandey ◽  
H. Shrestha ◽  
L.P. Devkota
Keyword(s):  
Climate Change ◽  
Agricultural Production ◽  
Time Series Data ◽  
Negative Impact ◽  
Wheat Yield ◽  
Series Data ◽  
National Bureau ◽  
Specific Objective ◽  
Analytical Tools ◽  
The Impact

The study the analyzed relationship of climate change with agricultural production in Kavre and Jumla districts. The specific objective of the study was to find out the dimension and linkage between agricultural production and climatic parameters in Kavre and Jumla. Time series data were analysed for the study. The data was sourced from the Department of Hydrology Meteorology, Department of Agriculture, and National Bureau of Statistics. Descriptive statistics, linear analysis test and back ward difference filter were the analytical tools used to determine the impact of climate change on productivity. During harvest period, the correlation of rice yield with temperature and rainfall was negative at Kavre but positive at Jumla. Similarly, the correlation of wheat yield with temperature and rainfall was positive at Kavre but negative at Jumla. The result showed that extreme fluctuation in weather caused negative impact on production in Jumla in compared to Kavre districts.

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