Purpose: The neo-classical theory of economic growth features the positive impact of the human capital of an economy on its growth. The inflow of foreign direct investment is one of the main components to carry forward the growth effect, this study investigates the impact of country-specific institutional quality and human capital on the cross-country variations of US-Foreign Direct Investment (FDI) inflows. Our core hypothesis is that Countries with better Human capital will attract more FDI if they have good quality institutions in terms of less risk in investment opportunities. Method: Using a set of panel data of US-Foreign Direct Investment (FDI) inflows for both developed and developing countries over the period 1984-2021. Result: The country-specific quality of institutions reinforces the impact of human capital on the inflow of US foreign direct investment in this study. Using two-dimensional panel data we find strong support for our hypothesis using a two-way fixed effects model. Our results are robust to the alternative measures of institutional quality. Implications: The strength of our approach is that in contrast to the previous works (1) we have used the USFDI inflow across countries that have been widely neglected in the related literature and (2) emphasis has been given to the conditional or joint impact of human capital and country-specific institutional quality in determining the cross-country variations in USFDI inflows.
{"title":"Cross Country Study of Human Capital Formation and USFDI Inflows","authors":"Barnana Bhattacharya, Chaitali Sinha","doi":"10.38157/fer.v6i1.615","DOIUrl":"https://doi.org/10.38157/fer.v6i1.615","url":null,"abstract":"Purpose: The neo-classical theory of economic growth features the positive impact of the human capital of an economy on its growth. The inflow of foreign direct investment is one of the main components to carry forward the growth effect, this study investigates the impact of country-specific institutional quality and human capital on the cross-country variations of US-Foreign Direct Investment (FDI) inflows. Our core hypothesis is that Countries with better Human capital will attract more FDI if they have good quality institutions in terms of less risk in investment opportunities.\u0000Method: Using a set of panel data of US-Foreign Direct Investment (FDI) inflows for both developed and developing countries over the period 1984-2021. \u0000Result: The country-specific quality of institutions reinforces the impact of human capital on the inflow of US foreign direct investment in this study. Using two-dimensional panel data we find strong support for our hypothesis using a two-way fixed effects model. Our results are robust to the alternative measures of institutional quality. \u0000Implications: The strength of our approach is that in contrast to the previous works (1) we have used the USFDI inflow across countries that have been widely neglected in the related literature and (2) emphasis has been given to the conditional or joint impact of human capital and country-specific institutional quality in determining the cross-country variations in USFDI inflows.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"56 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141650726","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Portfolio optimization is a process in which the capital is allocated among the portfolio assets such that the return is maximized while the risk is minimized. Portfolio construction and optimization has long been an active research area in finance. For the portfolios with highly correlated assets, the performance of traditional risk-based asset allocation methods such as, the mean-variance (MV) method is limited because quadratic optimizers require an inversion of the covariance matrix of the portfolio to distribute weight among the portfolio assets. Methods: A possible solution to the limitations of traditional risk-based asset allocation methods can be provided by a hierarchical clustering-based Machine Learning method because it uses hierarchical relationships between the covariance of assets in the portfolio to distribute the weight, and inversion of the covariance matrix is not required. A comparison of the performance of a simple non-optimization technique called the Equal-weight (EW) method to the two optimization methods, the Mean-variance method and the HRP method, which is a machine learning method, was conducted in this research. Results: It was found that in terms of cumulative returns, the equal-weight method has outperformed several more sophisticated optimization techniques, the mean-variance method, and the HRP method. For most of the period, the Sharpe ratio of the HRP method was observed to be similar to the mean-variance method and equal-weight method. Implications: This research supports the idea that HRP is a feasible method to construct portfolios with correlated assets because the performance of HRP is comparable to the performances of the traditional optimization method and the non-optimization method.
{"title":"Comparative Study of the Equal-Weight Method and Hierarchical Risk Parity in Portfolio Construction","authors":"Debjani Palit, Victor R. Prybutok","doi":"10.38157/fer.v6i1.609","DOIUrl":"https://doi.org/10.38157/fer.v6i1.609","url":null,"abstract":"Purpose: Portfolio optimization is a process in which the capital is allocated among the portfolio assets such that the return is maximized while the risk is minimized. Portfolio construction and optimization has long been an active research area in finance. For the portfolios with highly correlated assets, the performance of traditional risk-based asset allocation methods such as, the mean-variance (MV) method is limited because quadratic optimizers require an inversion of the covariance matrix of the portfolio to distribute weight among the portfolio assets.\u0000Methods: A possible solution to the limitations of traditional risk-based asset allocation methods can be provided by a hierarchical clustering-based Machine Learning method because it uses hierarchical relationships between the covariance of assets in the portfolio to distribute the weight, and inversion of the covariance matrix is not required. A comparison of the performance of a simple non-optimization technique called the Equal-weight (EW) method to the two optimization methods, the Mean-variance method and the HRP method, which is a machine learning method, was conducted in this research.\u0000Results: It was found that in terms of cumulative returns, the equal-weight method has outperformed several more sophisticated optimization techniques, the mean-variance method, and the HRP method. For most of the period, the Sharpe ratio of the HRP method was observed to be similar to the mean-variance method and equal-weight method.\u0000Implications: This research supports the idea that HRP is a feasible method to construct portfolios with correlated assets because the performance of HRP is comparable to the performances of the traditional optimization method and the non-optimization method.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"19 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140671297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Banks are adopting digital banking to attract clients by providing more useful services, and creating safe, dependable, and easy-to-use online tools. The purpose of this research is to examine the factors influencing the overall adoption of digital banking by retail banking customers. Methods: An expanded technology acceptance model (TAM) serves as the basis for the theoretical framework of the study. A structured survey of 200 consumers is used to gather primary data, and multiple regression analysis is used to examine the correlations between six independent components. Results: The research indicates that web capabilities, perceived utility, and awareness all have a positive and significant impact on the adoption of digital banking. Implications: This study offers guidelines for creating service models and boosting the use of digital banking. The findings can help policymakers and financial organizations devise strategies for constructing the infrastructure and methods for offering digital banking services. Originality: It is a pioneering effort to explore the combined effects of Perceived usefulness, usability, Privacy, safety, trust Cost of transactions Awareness and Web features on Bangladeshi users’ intention to use digital banking. Limitations: This study is based on quantitative data analysis with limited sample size and period. In future, qualitative research may be conducted for deeper understanding of the issue.
{"title":"Factors Affecting the Intention to Use Digital Banking","authors":"Mohammad Azhar Hossain","doi":"10.38157/fer.v5i2.596","DOIUrl":"https://doi.org/10.38157/fer.v5i2.596","url":null,"abstract":"Purpose: Banks are adopting digital banking to attract clients by providing more useful services, and creating safe, dependable, and easy-to-use online tools. The purpose of this research is to examine the factors influencing the overall adoption of digital banking by retail banking customers. \u0000Methods: An expanded technology acceptance model (TAM) serves as the basis for the theoretical framework of the study. A structured survey of 200 consumers is used to gather primary data, and multiple regression analysis is used to examine the correlations between six independent components.\u0000Results: The research indicates that web capabilities, perceived utility, and awareness all have a positive and significant impact on the adoption of digital banking. \u0000Implications: This study offers guidelines for creating service models and boosting the use of digital banking. The findings can help policymakers and financial organizations devise strategies for constructing the infrastructure and methods for offering digital banking services. \u0000Originality: It is a pioneering effort to explore the combined effects of Perceived usefulness, usability, Privacy, safety, trust Cost of transactions Awareness and Web features on Bangladeshi users’ intention to use digital banking. \u0000Limitations: This study is based on quantitative data analysis with limited sample size and period. In future, qualitative research may be conducted for deeper understanding of the issue.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"36 21","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139781842","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
G. G. Ngochembo, Honest Kfetua Ful, Vera Bekebang Mbouh
Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.
{"title":"Significance of Transformational Leadership on Project Portfolio Success within the Micro Financial Sector in Cameroon","authors":"G. G. Ngochembo, Honest Kfetua Ful, Vera Bekebang Mbouh","doi":"10.38157/fer.v5i2.595","DOIUrl":"https://doi.org/10.38157/fer.v5i2.595","url":null,"abstract":"Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. \u0000Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. \u0000Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. \u0000Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"661 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139841158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Banks are adopting digital banking to attract clients by providing more useful services, and creating safe, dependable, and easy-to-use online tools. The purpose of this research is to examine the factors influencing the overall adoption of digital banking by retail banking customers. Methods: An expanded technology acceptance model (TAM) serves as the basis for the theoretical framework of the study. A structured survey of 200 consumers is used to gather primary data, and multiple regression analysis is used to examine the correlations between six independent components. Results: The research indicates that web capabilities, perceived utility, and awareness all have a positive and significant impact on the adoption of digital banking. Implications: This study offers guidelines for creating service models and boosting the use of digital banking. The findings can help policymakers and financial organizations devise strategies for constructing the infrastructure and methods for offering digital banking services. Originality: It is a pioneering effort to explore the combined effects of Perceived usefulness, usability, Privacy, safety, trust Cost of transactions Awareness and Web features on Bangladeshi users’ intention to use digital banking. Limitations: This study is based on quantitative data analysis with limited sample size and period. In future, qualitative research may be conducted for deeper understanding of the issue.
{"title":"Factors Affecting the Intention to Use Digital Banking","authors":"Mohammad Azhar Hossain","doi":"10.38157/fer.v5i2.596","DOIUrl":"https://doi.org/10.38157/fer.v5i2.596","url":null,"abstract":"Purpose: Banks are adopting digital banking to attract clients by providing more useful services, and creating safe, dependable, and easy-to-use online tools. The purpose of this research is to examine the factors influencing the overall adoption of digital banking by retail banking customers. \u0000Methods: An expanded technology acceptance model (TAM) serves as the basis for the theoretical framework of the study. A structured survey of 200 consumers is used to gather primary data, and multiple regression analysis is used to examine the correlations between six independent components.\u0000Results: The research indicates that web capabilities, perceived utility, and awareness all have a positive and significant impact on the adoption of digital banking. \u0000Implications: This study offers guidelines for creating service models and boosting the use of digital banking. The findings can help policymakers and financial organizations devise strategies for constructing the infrastructure and methods for offering digital banking services. \u0000Originality: It is a pioneering effort to explore the combined effects of Perceived usefulness, usability, Privacy, safety, trust Cost of transactions Awareness and Web features on Bangladeshi users’ intention to use digital banking. \u0000Limitations: This study is based on quantitative data analysis with limited sample size and period. In future, qualitative research may be conducted for deeper understanding of the issue.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"309 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139841818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
G. G. Ngochembo, Honest Kfetua Ful, Vera Bekebang Mbouh
Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.
{"title":"Significance of Transformational Leadership on Project Portfolio Success within the Micro Financial Sector in Cameroon","authors":"G. G. Ngochembo, Honest Kfetua Ful, Vera Bekebang Mbouh","doi":"10.38157/fer.v5i2.595","DOIUrl":"https://doi.org/10.38157/fer.v5i2.595","url":null,"abstract":"Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. \u0000Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. \u0000Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. \u0000Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"78 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139781453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The objective of this study is to investigate the direct and indirect effects of agricultural productivity on industrialization. It also looks for the mediating role of infrastructural development on the effects of agricultural productivity on industrialization. Method: The system Generalized Method of Moments (GMM) methodology for 45 African countries is applied. It covers the period from 2005 to 2022. Results: The results show that agricultural productivity has a positive significant role on industrialization in Africa. This result is robust when industrialization is measured by employment in industry (EMIND). Infrastructural development has an enhancing role on the agricultural productivity-industrialization nexus. These results are robust for the two different measures of industrialization but are more enhancing on Employment in Industry than on Manufacturing Value Added (MVA). The study also observes that agricultural productivity interacts with the Water and Sanitation Index (WSS) on MVA to yield a positive net effect. Moreover, agricultural productivity interacts with ICT (Information and Communication Technology) and ECI (Electricity composite index) on both MVA and EMIND to yield positive synergy effects. Implications: The Electricity Composite Index is still not sufficient in Africa. Equally, there is a need for some countries like Chad, Ethiopia, Mozambique, and Niger to boost WSS above this threshold of 32.96 since this threshold is below the mean value for Africa as a whole. Policy-wise, it could be recommended that both agricultural productivity and infrastructural development should be strengthened, with emphasis on electricity, so as to achieve the much-needed level of industrialization for Africa.
{"title":"Contribution of Agricultural Productivity to Industrialization in Africa","authors":"Evina Ofeh Anchi, Ndzembanteh Aboubakary, Ofeh Edoh","doi":"10.38157/fer.v5i2.586","DOIUrl":"https://doi.org/10.38157/fer.v5i2.586","url":null,"abstract":"Purpose: The objective of this study is to investigate the direct and indirect effects of agricultural productivity on industrialization. It also looks for the mediating role of infrastructural development on the effects of agricultural productivity on industrialization. Method: The system Generalized Method of Moments (GMM) methodology for 45 African countries is applied. It covers the period from 2005 to 2022. Results: The results show that agricultural productivity has a positive significant role on industrialization in Africa. This result is robust when industrialization is measured by employment in industry (EMIND). Infrastructural development has an enhancing role on the agricultural productivity-industrialization nexus. These results are robust for the two different measures of industrialization but are more enhancing on Employment in Industry than on Manufacturing Value Added (MVA). The study also observes that agricultural productivity interacts with the Water and Sanitation Index (WSS) on MVA to yield a positive net effect. Moreover, agricultural productivity interacts with ICT (Information and Communication Technology) and ECI (Electricity composite index) on both MVA and EMIND to yield positive synergy effects. Implications: The Electricity Composite Index is still not sufficient in Africa. Equally, there is a need for some countries like Chad, Ethiopia, Mozambique, and Niger to boost WSS above this threshold of 32.96 since this threshold is below the mean value for Africa as a whole. Policy-wise, it could be recommended that both agricultural productivity and infrastructural development should be strengthened, with emphasis on electricity, so as to achieve the much-needed level of industrialization for Africa.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"79 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139209028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marcel Sewoyehbaa, Pekiaka Zebedee Nyounibe, Mboka Nyamsi Georges Bienvenue
Purpose: The purpose of this study was to investigate the determinants of self-employment in the Ndop Central sub-division in the North West Region of Cameroon. Specifically, the study aimed to examine the usefulness of technical education and finance in the creation of self-employment in the sub-division. Methods: Using a survey research design, data were collected from primary sources with the help of a questionnaire. The convenience sampling technique was used to collect the needed data from a sample of 384 people from three villages of the sub-division. Binary logistics was used to analyze the data. Results: Results revealed that the coefficient of technical education was significant and negative (-2.6581). This finding signifies that graduates from the technical system of education are less likely to join self-employment as compared to graduates of general education background. Also, the availability of finance was seen to have a negative effect on the probability of being self-employed (-0.0632). It implies that individuals who have easy access to loans are less likely to be self-employed. Implication: The study is expected to guide the government to revisit the curriculum and focus of technical education in the country, as regards its contribution to the unemployment problem of the country. The study also points to the fact that those who have access to loans are not those who deserve it.
{"title":"Self-Employment in Cameroon","authors":"Marcel Sewoyehbaa, Pekiaka Zebedee Nyounibe, Mboka Nyamsi Georges Bienvenue","doi":"10.38157/fer.v5i2.574","DOIUrl":"https://doi.org/10.38157/fer.v5i2.574","url":null,"abstract":"Purpose: The purpose of this study was to investigate the determinants of self-employment in the Ndop Central sub-division in the North West Region of Cameroon. Specifically, the study aimed to examine the usefulness of technical education and finance in the creation of self-employment in the sub-division. Methods: Using a survey research design, data were collected from primary sources with the help of a questionnaire. The convenience sampling technique was used to collect the needed data from a sample of 384 people from three villages of the sub-division. Binary logistics was used to analyze the data. Results: Results revealed that the coefficient of technical education was significant and negative (-2.6581). This finding signifies that graduates from the technical system of education are less likely to join self-employment as compared to graduates of general education background. Also, the availability of finance was seen to have a negative effect on the probability of being self-employed (-0.0632). It implies that individuals who have easy access to loans are less likely to be self-employed. Implication: The study is expected to guide the government to revisit the curriculum and focus of technical education in the country, as regards its contribution to the unemployment problem of the country. The study also points to the fact that those who have access to loans are not those who deserve it.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"47 53","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139203991","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose The present study explores the causal relationships between economic development, renewable energy consumption, nonrenewable energy consumption, and CO2 emissions in the context of Morocco. Methods The panel unit root test, Auto Regressive Distributed Lag (ARDL), and bounds test were used to assess the co-integration of the variables in the study and the long-run relationship between them. It employs the Granger causality test using a vector error correction model to determine the existence and direction of causality among the variables. It uses Morocco's annual statistical data from 1990 through 2019. Results The co-integration of the variables in the study was confirmed, implying that a long-run relationship exists between them. The causality test results suggest that a bidirectional causality exists between renewable energy consumption and economic development, which validates the feedback hypothesis of the mutual link between renewable energy consumption and economic development. Implications These findings suggest that Morocco's economic development is critical in providing the required resources for sustainable development. It also implies that boosting renewable energy utilization would enhance Morocco's economic development and limit environmental degradation.
{"title":"Economic Development and Renewable Energy Nexus in Morocco","authors":"Yousra Benyetho, Abdelilah El Attar","doi":"10.38157/fer.v5i1.557","DOIUrl":"https://doi.org/10.38157/fer.v5i1.557","url":null,"abstract":"Purpose The present study explores the causal relationships between economic development, renewable energy consumption, nonrenewable energy consumption, and CO2 emissions in the context of Morocco.\u0000Methods The panel unit root test, Auto Regressive Distributed Lag (ARDL), and bounds test were used to assess the co-integration of the variables in the study and the long-run relationship between them. It employs the Granger causality test using a vector error correction model to determine the existence and direction of causality among the variables. It uses Morocco's annual statistical data from 1990 through 2019.\u0000Results The co-integration of the variables in the study was confirmed, implying that a long-run relationship exists between them. The causality test results suggest that a bidirectional causality exists between renewable energy consumption and economic development, which validates the feedback hypothesis of the mutual link between renewable energy consumption and economic development.\u0000Implications These findings suggest that Morocco's economic development is critical in providing the required resources for sustainable development. It also implies that boosting renewable energy utilization would enhance Morocco's economic development and limit environmental degradation.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128999075","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The purpose of this study is to investigate Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria using State Government Debt Stock. Specifically, the study seeks to determine the effect of IGR on State government expenditure. Methods: Secondary data were used for this study. It used an annual panel data set spanning from 1986 to 2021 for six states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used as the method of analysis. Results: Results showed that the IGR of States in Nigeria had a positive effect on State government expenditure. The Impulse Response Function of expenditure to shocks from IGR indicates that IGR for the periods under analysis positively affected State government expenditure, increasing their expenditure profile for the majority of the period under analysis. The result of the variance decomposition test of State government total debt stock (TDS) shows that IGR had the greatest shock on the total debt stock of State governments in the country after its own shock. The findings also revealed a mixed and varied outcome, demonstrating both a positive and negative influence of IGR on the overall debt stock of the state government. Implications: The study is expected to contribute to good economic management, such as managing the debt load at reasonable levels, as well as adequate economic planning backed by cost-effective expenditure. It will also contribute to the economic sustainability of Nigerian states. The uniqueness of this research is obvious in its ability to address the statewide problem of over-dependence on the federal government’s allocation.
{"title":"Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria","authors":"J. Angahar, V. Olalere","doi":"10.38157/fer.v5i1.544","DOIUrl":"https://doi.org/10.38157/fer.v5i1.544","url":null,"abstract":"Purpose: The purpose of this study is to investigate Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria using State Government Debt Stock. Specifically, the study seeks to determine the effect of IGR on State government expenditure.\u0000Methods: Secondary data were used for this study. It used an annual panel data set spanning from 1986 to 2021 for six states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used as the method of analysis.\u0000Results: Results showed that the IGR of States in Nigeria had a positive effect on State government expenditure. The Impulse Response Function of expenditure to shocks from IGR indicates that IGR for the periods under analysis positively affected State government expenditure, increasing their expenditure profile for the majority of the period under analysis. The result of the variance decomposition test of State government total debt stock (TDS) shows that IGR had the greatest shock on the total debt stock of State governments in the country after its own shock. The findings also revealed a mixed and varied outcome, demonstrating both a positive and negative influence of IGR on the overall debt stock of the state government.\u0000Implications: The study is expected to contribute to good economic management, such as managing the debt load at reasonable levels, as well as adequate economic planning backed by cost-effective expenditure. It will also contribute to the economic sustainability of Nigerian states. The uniqueness of this research is obvious in its ability to address the statewide problem of over-dependence on the federal government’s allocation.","PeriodicalId":405715,"journal":{"name":"Finance & Economics Review","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128176416","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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