scholarly journals The Effect of Financial Crises on Growth and FDI in some African Countries: A Panel VECM Approach

2019 ◽  
Vol 8 ◽  
pp. 1308-1319
Author(s):  
Mary O. Oche ◽  
◽  
Yohane Khamfula ◽  
Gisele Mah
Keyword(s):  
Financial Crises ◽  
African Countries ◽  
Panel Vecm

Vulnerability and profitability of MENA banking system: Islamic versus commercial banks

2016 ◽  
Vol 9 (4) ◽  
pp. 454-473 ◽  
Author(s):  
Ahmad Y. Khasawneh
Keyword(s):  
Panel Data ◽  
Financial Crises ◽  
Commercial Banks ◽  
Stochastic Frontier ◽  
Balance Sheet ◽  
Banking System ◽  
Islamic Banks ◽  
African Countries ◽  
Content Type ◽  
Analytical Approaches

Purpose This paper aims to compare Islamic and commercial banks in the region of Middle East and North Africa (MENA) in terms of profitability and stability. Design/methodology/approach The study combines both the descriptive and analytical approaches. It considers panel data sets and adopts panel data econometric techniques. Findings The determinants of banks profitability and stability are different according to bank’s type. The results show that Islamic banks are more profitable than commercial banks, while on the other hand, commercial banks are more stable than Islamic banks. It is also concluded that banks profitability and stability are determined through some bank’s characteristics variables and macroeconomic variables in addition to the financial crises. MENA commercial and Islamic banking was affected by the financial crises in terms of profitability and stability. Additionally, larger banks are more stable than smaller banks, and off-balance sheet activities increase banks’ vulnerability for both commercial and Islamic MENA banks. Research limitations/implications The most prominent limitation is the lack of data, as we had to exclude some variables because of missing observations. As a result, the authors could not use data envelopment approach and stochastic frontier approach to evaluate banks efficiency in MENA countries rather than the financial ratios. Practical implications Commercial banks need to enhance their capitalization to improve their profitability. Additionally, Islamic banks need to improve the risk assessment and adopt some of the available risk management tools. Moreover, the banking system should take advantage of relatively higher Islamic banks profitability and use the unexploited profit opportunities through spreading into those countries with limited availability, such as the North African countries. Originality/value This study address both banks profitability and stability in an emerging region that includes banks of different types (Islamic and commercial) which are located in different counties that allows accounting for operational and institutional differences.

Antitrust Law Amidst Financial Crises

2009 ◽  
Author(s):  
Ioannis Kokkoris ◽  
Rodrigo Olivares-Caminal
Keyword(s):  
Financial Crises ◽  
Antitrust Law

An Application of the HFACS Method to Aviation Accidents in Africa

2016 ◽  
Vol 6 (1) ◽  
pp. 33-38 ◽  
Author(s):  
Isaac Munene
Keyword(s):  
Human Factors ◽  
Physical Environment ◽  
Human Factor ◽  
Flight Training ◽  
African Countries ◽  
Causal Factors ◽  
Aviation Accidents ◽  
Factors Analysis ◽  
Adverse Weather ◽  
Decision Errors

Abstract. The Human Factors Analysis and Classification System (HFACS) methodology was applied to accident reports from three African countries: Kenya, Nigeria, and South Africa. In all, 55 of 72 finalized reports for accidents occurring between 2000 and 2014 were analyzed. In most of the accidents, one or more human factors contributed to the accident. Skill-based errors (56.4%), the physical environment (36.4%), and violations (20%) were the most common causal factors in the accidents. Decision errors comprised 18.2%, while perceptual errors and crew resource management accounted for 10.9%. The results were consistent with previous industry observations: Over 70% of aviation accidents have human factor causes. Adverse weather was seen to be a common secondary casual factor. Changes in flight training and risk management methods may alleviate the high number of accidents in Africa.

Exploring the World Trade Organisation's Trade and Environment/Public Health Jurisprudence as a Model for Incorporating a Trade–Labour Linkage into the Organisation's Multilateral Trade Regime: Should African Countries Accept a Policy Shift?

2017 ◽  
Vol 25 (1) ◽  
pp. 47-65
Author(s):  
Tapiwa V. Warikandwa ◽  
Patrick C. Osode
Keyword(s):  
Public Health ◽  
Developing Countries ◽  
World Trade ◽  
African Countries ◽  
Trade Regime ◽  
Multilateral Trade ◽  
Appellate Body ◽  
The World ◽  
Labour Standards ◽  
The Impact

The incorporation of a trade-labour (standards) linkage into the multilateral trade regime of the World Trade Organisation (WTO) has been persistently opposed by developing countries, including those in Africa, on the grounds that it has the potential to weaken their competitive advantage. For that reason, low levels of compliance with core labour standards have been viewed as acceptable by African countries. However, with the impact of WTO agreements growing increasingly broader and deeper for the weaker and vulnerable economies of developing countries, the jurisprudence developed by the WTO Panels and Appellate Body regarding a trade-environment/public health linkage has the potential to address the concerns of developing countries regarding the potential negative effects of a trade-labour linkage. This article argues that the pertinent WTO Panel and Appellate Body decisions could advance the prospects of establishing a linkage of global trade participation to labour standards without any harm befalling developing countries.

The Contribution of Foreign Direct Investment for Economic Growth of Ethiopia: Time Series Analysis

2018 ◽  
Vol 9 (02) ◽  
Author(s):  
Addissie Melak
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Policy Framework ◽  
Annual Growth Rate ◽  
African Countries ◽  
Series Analysis ◽  
Integration Test

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.

The Coin of the African Realm

2017 ◽  
Author(s):  
Jeffrey Herbst
Keyword(s):  
Twentieth Century ◽  
West Africa ◽  
West African ◽  
Regional Economies ◽  
African Countries ◽  
New Strategies

This chapter examines the politics of the currency in West Africa from the beginning of the twentieth century. A public series of debates over the nature of the currency occurred in West Africa during both the colonial and independence periods. Since 1983, West African countries have been pioneers in Africa in developing new strategies to combat overvaluation of the currency and reduce the control of government over the currency supply. The chapter charts the evolution of West African currencies as boundaries and explores their relationship to state consolidation. It shows that leaders in African capitals managed to make the units they ruled increasingly distinct from the international and regional economies, but the greater salience of the currency did not end up promoting state consolidation. Rather, winning the ability to determine the value of the currency led to a series of disastrous decisions that severely weakened the states themselves.

Basel Capital Adequacy Ratio Standard in The Light of Islamic Law Perspective

2016 ◽  
Vol 1 ◽  
pp. 308-317
Author(s):  
Adi Rahmanur Ibnu
Keyword(s):  
Financial Crises ◽  
Global Economy ◽  
Banking Sector ◽  
Islamic Law ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Minimum Capital ◽  
Capital Adequacy Ratio ◽  
Global Banking ◽  
Banking Development

Bank is one of the most important pillars of economy activities. However, banking sector has a real potential crisis threat. Alongside with the steady current global banking development, financial crises that have happened clearly affected global economy. Based on that situation, BIS (Bank for International Settlement) – an international financial standard setting organization, realizes the urgency to establishan international financial standard and supervision to anticipate future potential financial crises. This research aims to identify how Capital Adequacy Ratio Standard in Basel Capital Accord (II) based on Islamic law perspective. The research is conducted by analyzing Basel Capital Accord published by BIS. The research uses library research method to find out the aimed result. The focus is on the 1st pillar of Basel II publication that is Minimum Capital Requirements (CAR) policy. CAR, as an Islamic economics policy, will be analyzed using falāḥ approach. Falāḥ is an Islamic economics objective that consists of happiness, success, accomplishment or good luck concept. The earthly dimension of falāḥ has some parameters that can be used to analyze Islamic economics policy. Additionally, the Islamic fiqh maxim takes part in analyzing the policy. The maṣlaḥat concept in fiqh maxim approach shares aim with falāḥ concept in the sense that all of sharia law aims for success, happiness, eternal survival etc. The maṣlaḥat can be accomplished by extinguishing mafsadat or seizing maṣlaḥat. The maṣlaḥat aspect is essential to determine the compatibility Basel Capital Accord with jurisprudential maxim i.e harm must be dispelled (al-dharāru yuzāl). The conclusion results are, 1) Basel Capital Accord focuses on macro-prudential aspect in order to anticipate potential financial crises, 2) beneficial/interest (maṣlaḥat) aspects of the hereafter, cooperation principle, justice, fairness and the prohibition of exploitation are not the core value of Basel Capital Accord frame work, thus 3) the achievement of maslahat as intended by sharia i.e. jurisprudential maxim are not convincing. Therefore, 4) Basel Capital Accord as a regulation basis is not in line with jurisprudential maxim i.e harm must be dispelled (al-dharāru yuzāl).

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