Financial deepening and economic growth nexus in emerging economies in Africa: does supply-leading or demand-following hold?

Manasseh, Charles O.; Ngong, Chi Aloysius; Logan, Chin Sp; Okanya, Ogochukwu C.; Olelewe, Chinwe A.

doi:10.1080/02692171.2023.2296506

Cited by 3 publications

(1 citation statement)

References 19 publications

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“…Literature provides a trail where people scoring high on financial knowledge are found effective in credit, saving, and investment behavior (King et al ., 2022) and are more likely to invest in higher efficiency funds, plan for future years, and perceive high financial satisfaction or managerial financial wisdom (Philippas and Avdoulas, 2020). Research provides evidence that financial knowledge helps managers prepare for economic distress (Manasseh et al ., 2024). More recent research into financial wisdom indicates its strong effect on long-term financial behaviors than short-term (Wagner and Walstad, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

Valiyan,

Abdoli,

Ashrafi

et al. 2024

AJB

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PurposeBehavioral characteristics and the existence of personal knowledge and skills that are essential in forming a capable manager with specialized insight, is one of the most important evaluation processes in appointing a manager. Wisdom as a trait of a set of personal characteristics and cognitive knowledge of a capable manager will gain competitive advantages for the company and external stakeholders. The purpose of this study is to present the framework of managerial financial wisdom through qualitative and quantitative research methodologies.Design/methodology/approachThe study uses grounded theory methodology to identify factors for managerial financial wisdom and uses a MICMAC process to evaluate the power of driving and dependence among factors. MaxQDA software was used for data coding and analysis. The MICMAC process by determining the location of each of the sub-themes in the four-dimensional matrix, seeks to determine the most effective criterion in the context of the study. The method of data collection is mixed and in terms of philosophical nature, this study is inductive/comparative.FindingsThe results of the research in the qualitative part indicate the presentation of a framework based on two categories, four components, and thirty themes. The results of the quantitative part of the study also showed that the most important factor of managerial financial wisdom is market-oriented values. Finally, it was found that the social trust caused by managerial financial wisdom is considered a factor in gaining more shares in the capital market due to the positive stimulus in this dimension.Originality/valueThe study is relevant for both practitioners and academia and has significant implications. For practitioners, the structural linkages identified will help enhance managerial wisdom effectiveness and drive the critical metrics for financial decisions and shareholders' rights protection. The study may help financial market practitioners better understand future policies. Academia and researchers can take reference from methodologies used in this study for exploring factors of interest and developing matrix linkages among them.

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Section: Literature Reviewmentioning

confidence: 99%

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

Valiyan,

Abdoli,

Ashrafi

et al. 2024

AJB

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Causal relationship between financial deepening, national security, ecological footprint, and economic growth in Nigeria

Manasseh,

Logan,

Okanya

et al. 2024

F1000Res

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Background This study seeks to examine the causal link between financial deepening, national security, ecological footprint, and economic growth in Nigeria, in order to contribute to the contradicting evidence on economic growth drivers. Methods The dynamic ARDL model was employed as the baseline model to establish the link between the phenomena, and the FMOLS and DOLS as robust models using time series data spanning from 1995 to 2022. The FMOLS and DOLS models take into consideration the presence of endogeneity, cross-sectional dependency, and heterogeneity. Results The results demonstrate that whereas ecological footprint has positive and significant long-term relationships with economic growth, financial deepening and national security have negative and significant long-run relationships with economic growth. There was a 34% and 50% correction to the short-term to long-term adjustment speed, respectively. The findings of the Granger causality, interaction terms, marginal (ME), and threshold (TH) effects demonstrate: a) a significant bidirectional causal relationship between national security and economic growth, as well as a one-way significant causal link between financial deepening and economic growth; b) changes in national security and ecological footprint have a significant and negative impact on the financial deepening effect on economic growth; c) significant negative and marginal effects of national security on economic growth, as well as significant positive marginal effects of ecological footprints on economic growth; and d) the impact of financial deepening on economic growth becomes apparent when the increases in the marginal effect of the ecological footprint reach a critical limit over the ( TH CO 2 = 0.981) threshold. Conclusions This study highlights the significant link between Nigeria’s financial deepening, national security, ecological footprint, and economic growth. It recommends that viable policies be put in place to support the development of financial institutions, increasing security infrastructure investment, and promoting renewable energy use for sustainable environment and reduced carbon emissions.

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The Impact of Financial Development and Trade Openness on Economic Growth: Time Series Evidence from Luxembourg

Jabbar,

Ahmad,

Sultan

et al. 2024

BBE

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Financial deepening and trade openness are among one of the important drivers of economic growth. Liberalized financial sector promote investors and this boosts up production activities in any economy. On the other side, both exporters and importers together promote trading activities and this encourages quantity of output in any economy. Based on this intuition, this study is structured to inquire the effects of financial development and trade openness on economic growth for Luxembourg economy. This research uses ARDL bounds test for an annual data series from 1980 to 2020 and empirical results suggests that trade openness and financial development have significant and appreciating impact on economic growth. The results further confirm that capital stock has significant and increasing impact on economic growth. Among all these three drivers, trade is the strongest driver that boosts economic growth. Lastly, labor force is witnessed as irrelevant driver for the selected economy. These results are supported by all the diagnostic tests. In order to give boost to economic activities in Luxembourg, trade openness, financial development and capital accumulation should be regulated in such a way that they may remain production friendly in selected country.

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Financial deepening and economic growth nexus in emerging economies in Africa: does supply-leading or demand-following hold?

Cited by 3 publications

References 19 publications

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

Causal relationship between financial deepening, national security, ecological footprint, and economic growth in Nigeria

The Impact of Financial Development and Trade Openness on Economic Growth: Time Series Evidence from Luxembourg

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