scholarly journals Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

2020 ◽  
Vol 12 (3) ◽  
pp. 895 ◽  
Author(s):  
Cephas Paa Kwasi Coffie ◽  
Hongjiang Zhao ◽  
Isaac Adjei Mensah
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Series Data ◽  
Mobile Payment ◽  
Cross Sectional ◽  
Mobile Payments ◽  
Long Run

The financial landscape of sub-Sahara Africa is undergoing major changes due to the advent of FinTech, which has seen mobile payments boom in the region. This paper examines the salient role of mobile payments in traditional banks’ drive toward financial accessibility in sub-Sahara Africa by using panel econometric approaches that consider the issues of independencies among cross-sectional residuals. Using data from the World Development Index (WDI) 2011–2017 on 11 countries in the region, empirical results from cross-sectional dependence (CD) tests, panel unit root test, panel cointegration test, and the fully modified ordinary least squares (FMOLS) approach indicates that (i) the panel time series data are cross-sectionally independent, (ii) the variables have the same order of integration and are cointegrated, and (iii) growth in mobile payment transactions had a significant positive relationship with formal account ownership, the number of ATMs, and number of new bank branches in the long-run. The paper therefore confirms that the institutional structure of traditional banks that makes them competitive, irrespective of emerging disruptive technologies, has stimulated overall financial accessibility in the region leading to overall sustainable growth in the financial sector. We conclude the paper with feasible policy suggestions.

Analyzing the Role of Money Balances as a factor of Output in Context of Globalization: A Case Study of Bahrain

2021 ◽  
Vol 3 (2) ◽  
pp. 177-187
Author(s):  
Wahib Ali Musleh Elayah ◽  
Wen Hu ◽  
Othman Mohammed ◽  
Ihtisham ul Haq ◽  
Muhammad Awais
Keyword(s):  
Least Squares ◽  
Time Series Data ◽  
Global Financial Crisis ◽  
Unit Root Test ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Real Money ◽  
Long Run ◽  
Sustainable Economic Growth

The nexus between money and output is regaining attention from researchers after recent global financial crisis. Likewise, globalization-output nexus also grabs the attention of researchers. Henceforth, the study is design to analyze the effect of real money balances and globalization on output by incorporating real money balances and globalization in Cobb-Douglas production function. Time series data has been analyzed and all variables of the study are tested for order of integration through unit root test. So, it is found that that all variables are integrated of first order so one cannot apply ordinary least squares. This is the reason that Johansen cointegration technique and the cointegration regression, fully modified least squares, are applied for long run relationship and long run estimates respectively. The cointegration technique confirmed long run relationship among variables thus; it is concluded that real money balances and globalization are important determinants of output in the Kingdom of Bahrain. Furthermore, results of the study show that real money balances and globalization are found to have positive and significant effect on output along with labor and capital. Thus, this study concludes that real money balances and globalization are important factors of output in the Kingdom of Bahrain and monetary authorities should consider real money balances and globalization in policy making for sustainable economic growth.

EMPIRICAL ANALYSIS OF INDIA’S FOREIGN TRADE AND ECONOMIC GROWTH

2020 ◽  
Vol 8 (10) ◽  
pp. 105-111
Author(s):  
Khujan Singh ◽  
Anil Kumar
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Series Data ◽  
Significant Implication ◽  
Causality Test ◽  
First Order ◽  
Long Run ◽  
Directional Relation ◽  
Augmented Dickey Fuller ◽  
Vecm Granger Causality

The present study is an attempt to examine long run relationship among India’s GDP, Exports and Imports for which yearly time series data from 1995 to 2018 has been collected. Data for India’s GDP has been collected from RBI website and India’s export and import data has been collected form Ministry of Commerce and Industry website. The Augmented Dickey-Fuller unit root test for stationarity found that studied variables become stationary at first order of difference. While, Johnson cointegration test revealed long run cointegration between India’s GDP, exports and imports. The results of VECM Granger causality test exhibited bi-directional relationship between India’s GDP and India’s exports, whereas uni-directional relation has been found between India’s GDP and India’s imports. These results have significant implication for India’s export import policy and to achieve a target of $5 trillion economy till 2024-2025.

scholarly journals COINTEGRATING RELATION BETWEEN EXCHANGE RATE AND GOLD PRICE

2017 ◽  
Vol 5 (10) ◽  
pp. 263-269
Author(s):  
Ranjusha ◽  
Devasia ◽  
Nandakumar
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Unit Root Test ◽  
Gold Price ◽  
Series Data ◽  
Annual Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Relationship

The very purpose of this paper is to analyse the relationship between gold price and Rupee – Dollar exchange rate in India. The study utilises the annual data of exchange Rate (ER) and Gold Price (GP) from 1970 to 2015 to determine the relationship. Different econometric tools like Unit root test, Johansen co integration test, Vector error correction model, Granger causality test are used for detecting the long run relation, if any between the mentioned variables. The result shows that there exists a long run cointegrating relation between the variables. That is we can stabilise the Gold Price movement by controlling the exchange rate fluctuations. Likewise it also shows that Exchange rate doesn’t Granger cause to Gold price and vice versa. It means that the time series data of one vasriable cannot be used to predict another.

scholarly journals The Effect of the Global Financial Crisis on the Level of Accounting Conservatism in Commercial Banks: Evidence from Jordan

2017 ◽  
Vol 12 (2) ◽  
pp. 151 ◽  
Author(s):  
Yusuf Ali Al-Hroot ◽  
Laith Akram Muflih AL-Qudah ◽  
Faris Irsheid Audeh Alkharabsha
Keyword(s):  
Time Series ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Time Series Data ◽  
Global Financial Crisis ◽  
Ordinary Least Squares ◽  
Accounting Conservatism ◽  
Series Data ◽  
Cross Sectional ◽  
The Global Financial Crisis

This paper intends to investigate whether the financial crisis (2008) exerted an impact on the level of accounting conservatism in the case of Jordanian commercial banks before and during the financial crisis. The sample of this study includes 78 observations; these observations are based on the financial statements of all commercial banks in Jordan and may be referred to as cross-sectional data, whereas the period from 2005 to 2011 represents a range of years characterized by time series data. The appropriate regression model to measure the relationship between cross-sectional data and time series data is in this case the pooled data regression (PDR) using the ordinary least squares (OLS) method. The results indicate that the level of accounting conservatism had been steadily increasing over a period of three years from 2005 to 2007. The results also indicate that the level of accounting conservatism was subjected to an increase during crisis period between 2009 and 2011 compared with the level of accounting conservatism for the period 2005-2007 preceding the global financial crisis. The F-test was used in order to test the significant differences between the regression coefficients for the period before and during the global financial crisis. The results indicate a positive impact on the accounting conservatism during the global financial crisis compared with the period before the global financial crisis. The p-value is 0.040 which indicates that there are statistically significant differences between the two periods; these results are consistent with the results in Sampaio (2015).

scholarly journals Influence of Bank Credits on the Nigerian Economy

2019 ◽  
Vol 5 (1) ◽  
pp. 1-9
Author(s):  
Idachaba Odekina Innocent ◽  
Olukotun G. Ademola ◽  
Elam Wunako Glory
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Time Series Data ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
Lending Rate ◽  
Negative Effect

The aim of this study is to examine the influence of bank credits on the Nigerian economy using time series data covering the period from 1980 to 2017.Gross domestic product was used as proxy for the economy while credits to the private sector, public sector and prime lending rate were used as proxies of Banks credits. Unit root test was used to test stationary which reveals that all the variables were stationary at first difference. The regression analysis result shows that credit to the private sector have positive effect on Nigerian economy while credit to public sector and prime lending rate have negative effect on the Nigerian economy. The result of co-integration test presented reveals that there exist among the variables co-integration which means long-run analysis. It is recommended that, policy makers should focus attention on long-run policies to promote economic growth such as development of modern banking sector, efficient financial market, infrastructures.

scholarly journals Assessing the Role of Environmental Expenditures and Green Transport in Emissions Released by Transport: An Application of ARDL Approach

2021 ◽  
Vol 9 ◽  
Author(s):  
Zahid Hussain ◽  
Cuifen Miao ◽  
Weitu Zhang ◽  
Muhammad Kaleem Khan ◽  
Zhiqing Xia
Keyword(s):  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Oecd Countries ◽  
Joint Effect ◽  
Series Data ◽  
Cross Sectional ◽  
Railway Traffic ◽  
Long Run ◽  
Environmental Expenditures

This study investigates the effects of transport and environmental factors on transport carbon dioxide emissions (TCO2). It employs cross-sectional autoregressive distributed lags for the estimation in the short and long runs and examines the panel time-series data from 2000 to 2020 in the OECD countries. This method allows heterogeneity in the dependencies and slope parameters across the countries. The results demonstrate that road and railway traffic movements increase the amount of TCO2 in the short and long runs. In addition, transport energy consumption is the driving factor in releasing TCO2 in the long run. Moreover, the joint effect of locomotives and transport energy consumption significantly reduces TCO2 in the short run. By contrast, the findings support the argument that environmental expenditures and green transport mitigate TCO2 in the long run. The findings also show an inverted u-shaped relationship between TCO2 and transport energy consumption. With the empirical findings as a basis, we suggest that the OECD countries should reduce traffic movements and enhance the environmental expenditures so that they may produce green transport vehicles to combat environmental issues.

scholarly journals The Effect of Liquidity on Financial Performance: Evidence from Turkish Retail Industry

2016 ◽  
Vol 8 (4) ◽  
pp. 63 ◽  
Author(s):  
Kartal Demirgünes
Keyword(s):  
Financial Performance ◽  
Time Series Data ◽  
Unit Root Test ◽  
Series Data ◽  
Retail Industry ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Dynamic Ols ◽  
Retail Merchandising

The aim of this study is to analyse the effect of liquidity on financial performance (<em>in terms of</em> profitability) by using a time-series data of Turkish retail industry (consisting of Borsa Istanbul (BIST) listed retail merchandising firms) in the period of 1998.Q1-2015.Q3. The stationarity of series and the co-integration relationship between them are tested by the unit root test of Carrioni-i-Silvestre et al. (2009) and the co-integration test of Maki (2012), respectively. Co-integration coefficients are estimated by Stock and Watson (1993) dynamic OLS method. Finally, causal relationships between the series are tested by Hacker and Hatemi (2012) bootstrap causality test. Results of Maki (2012) test show that the series are co-integrated in the long-run. While long-run parameters estimated posit a significantly positive relationship between financial performance and liquidity, causality test does not indicate any direction of causality between the series.

Trade Openness, Foreign Direct Investment and Economic Growth: Empirical Evidence from India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Brajaballav Pal
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government

This paper examines the relationship among GDP, foreign direct investment and trade openness for India using time series data from 2001 to 2016. In this study unit root test is used to solve the problem of stationery and to determine the order of integration between the variables. Johnson co-integration test suggests that there is a long run equilibrium relationship among the variables by considering relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and Trade Openness (TO). The result indicates that trade openness exerts influence on foreign direct investment. The government and policy makers should take up strategies to attract foreign investment so as to promote economic growth.

scholarly journals Does Financial Instability of Conventional Banks Affect Financial Stability of Islamic Banks in GCC Countries?

2019 ◽  
Vol 11 (1) ◽  
pp. 361
Author(s):  
Hamid Abdulkhaleq Hasan Al-Wesabi ◽  
Rosylin Mohammed Yusof
Keyword(s):  
Financial Stability ◽  
Time Series Data ◽  
Panel Cointegration ◽  
Generalized Least Squares ◽  
Causal Link ◽  
Series Data ◽  
Islamic Banks ◽  
Gcc Countries ◽  
Long Run ◽  
Conventional Banks

Purpose: The main purpose of this paper is to investigate the relationship between financial stability in Islamic banks and financial stability and soundness in conventional banks for five GCC countries.Design/methodology/approach: By using time series data, this study employs Pedroni’s panel cointegration to test the long-run relationship between financial stability of Islamic banks and financial stability of conventional banks in GCC countries during the period of (2000-2017). Besides, the study also employs Granger causality to test the causal link between stability of two types of banks (Islamic and Conventional). As well as employing Generalized Least Squares (GLS) to examine the effects between independent variables which are financial stability of conventional banks and their profitability, impact of period of financial crisis (2008/2009), oil prices fluctuations, banking concentration and financial sector development and financial stability of Islamic banks (as the dependent variable).Findings: The findings of this research suggest that there is a long-run, significant and positive relationship between the financial stability of conventional banks and its Islamic counterpart. At the same time, the financial stability of conventional banks is found to Granger caused the stability of Islamic banks.Originality/value: The results of the study contribute towards understanding the determinants of the financial stability of both Islamic banks and conventional banks and how they affect each other. This is important for policy ramifications by the Central Banks in GCC in terms of treating both types of banks differently to mitigate against future financial crises.

scholarly journals Implication of Monetary Policy Rate and Interest Rate on Exchange Rate in Nigeria: 1981-2017

2019 ◽  
pp. 1-11
Author(s):  
Nnamani, Vincent ◽  
Anyanwaokoro, Mike
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Time Series Data ◽  
Unit Root Test ◽  
Series Data ◽  
Statistical Tool ◽  
Long Run ◽  
The Exchange Rate ◽  
The Impact

The study investigated the implication of monetary policy rate on the exchange rate and interest rate in Nigeria, 1981-2017. Because of the above-stated problems, the specific objectives are to: Investigate the effect of monetary policy rate on the exchange rate in Nigeria, determine the effect of the monetary policy rate on interest rate in Nigeria. The analysis of error correction and autoregressive lags fully covers both long-run and short-run relationships of the variable under study. The statistical tool of analysis employed in the study is Autoregressive Distributed Lags (ARDL) and Philips Peron method of stationary testing and structural breakpoint unit root test., these methods were employed to check the stationarity and breakpoint analysis of the time series data employed in this study. The study observed that monetary policy rate has a positive and significant effect on the exchange rate in Nigeria. It was also observed that the monetary policy rate has a positive and significant effect on the interest rate in Nigeria. Overall, our results indicated that the impact of monetary policy on the exchange rate was significant. There was a positive and significant relationship between monetary policy variables and exchange rate. The conclusion that is drawn from our results is that monetary policy remains an effective and potent tool for ensuring a stable exchange rate in Nigeria. The study recommended that monetary policy should be used to create a favourable investment environment by facilitating the emergence of market-based interest rate and exchange rate regimes which could attract domestic and foreign investments. Second; the Central bank of Nigeria (CBN) need to avoid ordination and balance between monetary and fiscal policies to ensure the smooth realization of monetary policy goals. Policy inconsistency or summersault to determine its policy impact before contemplating a change. Finally, there should be a coo.

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