Microfinance and Entrepreneurship in Nigeria

2018 ◽  
pp. 65-84 ◽  
Author(s):  
Babajide Abiola Ayopo ◽  
Lawal Adedoyin Isola ◽  
Taiwo Joseph Niyan ◽  
Akinjare Victoria Bosede
Keyword(s):  
Significant Relationship ◽  
Financial Services ◽  
Least Square ◽  
Small Scale ◽  
Vector Error Correction ◽  
Entrepreneurship Development ◽  
Ordinary Least Square ◽  
Long Run ◽  
Entrepreneurial Activities ◽  
Relationship Of

Microfinance banks were established to provide diversified, affordable, and dependable financial services to the active poor that would enable them to undertake and develop long-term, sustainable entrepreneurial activities to create employment opportunities, increase their productivity, and thereby increase household's income and standard of living. This chapter employed ordinary least square and vector error correction estimation techniques to establish the contribution and long-run relationship of microfinance to entrepreneurship development in Nigeria for the period 1992-2015. The result shows that a positive significant relationship exists between microfinance gross loan portfolio, total deposit liability, and entrepreneurship proxied by number of newly registered business, while a negative significant relationship exists between microfinance bank asset and entrepreneurship. This therefore suggests that availability of loanable funds for micro and small-scale enterprises provided significant support for entrepreneurship development in Nigeria. The result also shows that a long-run relationship exists between microfinance variables and entrepreneurship in Nigeria. The study therefore recommends that microfinance banks should improve on the quality of their asset by reducing non-performing loans.

scholarly journals Does Monetary Policy Affect Economic Growth in Jordan? Evidence from Ordinary Least Square Models

2018 ◽  
Vol 12 (1) ◽  
pp. 27
Author(s):  
Mohamed Ibrahim Mugableh
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Positive Impact ◽  
Least Square ◽  
Vector Error Correction ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

The main objective of this paper is to analyze equilibrium and dynamic causality relationships between monetary policy tools and economic growth in Jordan for the period (1990-2017). For this purpose, it considers the autoregressive distributed lag (ARDL) and vector error correction (VEC) models estimations. The results of ARDL approach show that monetary policy variables (i.e., real interest rate and money supply) have positive impact on economic growth in long-run and short-run except inflation rate. In addition, the results of VECM indicate bidirectional causal relationships between economic growth and monetary policy variables in long-run and short-run.

scholarly journals Openness in Financial Services Trade and Financial Development: Evidence from the BRICS Economies

2019 ◽  
Vol 26 (1) ◽  
pp. 55-69
Author(s):  
Rabia Khatun
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Least Square ◽  
Services Trade ◽  
Ordinary Least Square ◽  
Long Run ◽  
Cent Increase ◽  
Cent Level ◽  
The Government ◽  
Level Of Significance

This article investigates the long-run relationship between openness in financial services trade (OPTIFS) and financial development in five BRICS (Brazil, Russia, India, China and South Africa) economies, for the period of 1990–2012. It is found that the variables under consideration possess a long-run relationship in the mentioned economies. Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) have been performed to find the long-run coefficient of the variables. Results from FMOLS and DOLS have confirmed that OPTIFS has a positive and significant impact on financial development. The study reveals that 1 per cent increase in trade in financial services causes 0.109 increase in total credit to private sector, which is used as a proxy for financial development, indicating that the government should try to remove barriers from trade in financial services in order to develop better financial structure, thereby promoting further growth. It is also found that some of the control variables like gross savings and gross domestic product have positive and significant impact on financial development at 5 per cent level of significance

Does dollarization reduce or produce inflation?

2015 ◽  
Vol 42 (3) ◽  
pp. 358-376 ◽  
Author(s):  
Lula G. Mengesha ◽  
Mark J. Holmes
Keyword(s):  
Least Square ◽  
Market Exchange ◽  
Content Type ◽  
Vector Error Correction ◽  
Ordinary Least Square ◽  
Long Run ◽  
Short Run ◽  
Market Exchange Rate ◽  
The Impact ◽  
Partial Dollarization

Purpose – The purpose of this paper is to address the unresolved outcome of the research on the impact of dollarization on inflation by examining the partially dollarized economy of Eritrea. Design/methodology/approach – Inflation under partial dollarization is modelled based on money demand and supply framework. Using quarterly data for the study period 1996Q1-2008Q4, estimation is based on a vector error correction model together with dynamic ordinary least square. Findings – The results indicate that inflation increases as a result of an increase in dollarization. This applies to both the short-run and long-run estimations regardless of whether official or black market exchange rate data are used in the analysis. In terms of the short-run dynamics involved in the long-run relationship between dollarization and inflation, the speed of adjustment toward long-run equilibrium ranges from negative 7.2-7.6 percent per quarter. Research limitations/implications – The main policy implication of the finding is that the extent of dollarization should not be overlooked in controlling inflation in the short run and the long run. Originality/value – Despite a number of studies that examine the consequences of dollarization, the impact of partial dollarization on inflation in the Eritrean economy has never been addressed. This study, therefore, is original in its kind and resolves the controversial outcomes on the studies of inflation and dollarization by modelling inflation under partial dollarization, providing new evidence and revealing potential economic reasons for the discrepancies in the findings of the literature on partial dollarization.

Turnaround Model Prediction with Content Dimension on Financial Distress Firms

2020 ◽  
Vol 11 (1) ◽  
pp. 65-65
Author(s):  
Giriati
Keyword(s):  
Family Member ◽  
Model Prediction ◽  
Significant Relationship ◽  
Financial Distress ◽  
Stock Exchange ◽  
Organization Change ◽  
Least Square ◽  
Ordinary Least Square ◽  
Change Framework

This article aims to synthesize and test empirically turnaround model by content dimension that is an integration of the organization change framework into turnaround research to measure some activities done to avoid failure in turnaround. This study on the Indonesian Stock Exchange (BEI) by using Ordinary Least Square technique. The results of the analysis from content dimension show that the CEO expertise variable has a significant relationship to turnaround, since companies in Indonesia are dominated by family companies, so maintaining the incumbent CEO is more appropriate, because it is a family member. In addition, free assets show a significant relationship with turnaround, while leverage and growth of sales do not have a significant relationship with turnaround. Keywords: Financial Distress, Turnaround Model, CEO Expertise, Free Assets, Leverage and Growth of Sales,

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.

scholarly journals Impacto das exportações de alta tecnologia no crescimento econômico: evidências empíricas do Paquistão

2017 ◽  
Vol 8 (1) ◽  
pp. 91 ◽  
Author(s):  
Muhammad Usman
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Time Span ◽  
Least Square ◽  
High Tech ◽  
Ordinary Least Square ◽  
Robust Standard Error ◽  
Long Run ◽  
Data Source ◽  
The Impact

The goal of this study is to explore the impact of high tech exports on economic growth of Pakistan. To examine this relationship, data are collected from World Bank database, State Bank of Pakistan data source and Statistical Bureau of Pakistan. Time span of study is consisting of 20 years from 1995 to 2014. By using ordinary least square (OLS) with robust standard error, results confirm that there is a positive and statistically significant impact of high tech exports on economic growth. Although Pakistan is an agriculture country and its economic growth is largely depend upon farming, but for long run economic growth, Pakistan has to increase its high tech exports.

scholarly journals Impact of Exchange Rate Management on the Nigerian Economic Growth: Empirical Validation

2019 ◽  
Vol 1 (2) ◽  
pp. 28-35
Author(s):  
Friday Osaru Ovenseri Ogbomo ◽  
Precious Imuwahen Ajoonu
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Least Square ◽  
Ordinary Least Square ◽  
Exchange Rate Management ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examined the impact of Exchange Rate Management on economic growth in Nigeria between 1980 and 2015. The study was set to gauge how the management of exchange rate in Nigeria has impacted the economy. The study employed the Ordinary Least Square (OLS) method in its analysis. Co-integration and Error Correction Techniques were used to establish the Short-run and Long-run relationships between economic growth and other relevant economic indicators. The result revealed that exchange rate management proxy by various exchange rates regimes in Nigeria was not germane to economic growth. Rather, government expenditure, inflation rate, money supply and foreign direct investment significantly impact on economic growth in Nigeria. It is against this backdrop that the Nigerian economy must diversify her export base to create room for more inflow of foreign exchange.  

scholarly journals Trade Balance and Exchange Rate in Thailand & the Implications for Vietnam: An Application using Instrumental Variable and the Heterogeneous Panel Cointegration Methods

2016 ◽  
Vol 23 (01) ◽  
pp. 137-160
Author(s):  
Anh Vo The ◽  
Duc Vo Hong
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Panel Cointegration ◽  
Least Square ◽  
Monetary Policies ◽  
Ordinary Least Square ◽  
Long Run ◽  
Trading Partners ◽  
The Exchange Rate ◽  
Heterogeneous Panel

This study aims to investigate the link of trade balance and exchange rate for the case of Thailand in different aspects by initially attempting to examine what factors determine the trade balance in Thailand and then to test the long-run relationship between the exchange rate and Thailand’s trade balance. The empirical findings indicate that the exchange rate and relative growth rate of income play central roles in explaining Thailand’s trade balance, and fiscal and monetary policies are beneficial in some cases. Additionally, panel fully modified ordinary least square (FMOLS) estimations illustrate that a devaluation of Thailand Baht offers a significantly positive improvement on its trade balance in the long run, especially for the groups of countries with upper middle and high income in America and Europe. Individual FMOLS regressions of Thailand’s trade balance and each of its 62 trading partners suggest that a devaluation of Thailand’s currency would stimulate Thailand’s trade performance with over 20 trading partners, but hurt its performance with the other 10 countries and be inconclusive to the others.

scholarly journals Analysis of Internal and External Determinant Variables towards Profitability of Islamic Banking in Indonesia (2014-2020)

2021 ◽  
Vol 4 (1) ◽  
pp. 18-34
Author(s):  
Febri Ramadhani ◽  
Muhammad Rizkan
Keyword(s):  
Negative Relationship ◽  
Banking System ◽  
Islamic Banking ◽  
Correction Model ◽  
Factors Affecting ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Relationship Of

Indonesia is a country that adheres to a dual banking system, namely conventional and Islamic Banking. The growth rate of Islamic banking in the last three years is higher than conventional banking. However, in total assets, Islamic banking is still far behind conventional banking. Therefore, it is necessary to study further the performance of Islamic banking reflected in its profitability. So, it becomes an alternative input in determining Islamic banking policies. This study aims to know the factors affecting the profitability (ROA) of Islamic Banking in Indonesia. The data used are the 2014-2020 monthly data in the amount of 79 data. The method used in this study is a Vector Error Correction Model (VECM) to determine the effect of long-run and short-run relationships. The results of the study showed that the long-run relationship of the NPF variable affected and was significant positive toward ROA, CAR affected and was significant negative toward ROA, while the inflation variable had a negative relationship and not significant toward ROA. The results of the short-run relationships showed that the NPF and CAR variables positively affected ROA, while the inflation variable did not significantly affect the ROA.

COINTEGRATED-BASED FORECAST OF LONG-RUN RELATIONSHIPS

2021 ◽  
Vol 14(63) (1) ◽  
pp. 153-168
Author(s):  
Klara-Dalma Deszke ◽  
Liliana Duguleana
Keyword(s):  
Vector Error Correction ◽  
Final Consumption ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Vector Error ◽  
Long Run ◽  
Lag Model ◽  
Relationship Of

The Vector Error Correction Model (VECM) and the Autoregressive Distributed Lag Model (ARDL) are used to estimate the cointegration in the case of long-run relationship of quarterly GDP and Final Consumption in Romania during the period 1995 – 2019. The actual data of 2020 Q1 and Q2 were used to check the best model’s validity. The static and dynamic approaches of the ARDL model were used to forecast the Final Consumption for Q3 and Q4 of the year 2020. Applying the cointegration model shows the long term relationship of GDP and Final Consumption, but also the effects of other factors, seen in the differences of Final Consumption from its Long-Run evolution, and comprised in the cointegrating terms.

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