Jamaica: Financial Development, Access and Inclusion: Constraints and Options

Mooney, Henry

doi:10.18235/0001444

Cited by 6 publications

(4 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Jamaica's financial depthmeasured as the ratio of domestic private credit to the gross domestic product (GDP)was 38% in 2018, while the average for the Latin America and Caribbean region was just over 50% (World Bank, 2021). Similarly, when compared to other Caribbean countries of similar size, economic base and susceptibility to both external shocks and natural disasters, Jamaica still lags behind almost all its peers, including Barbados, St. Lucia, St Kitts and Nevis and the Bahamas, with financial depths at 80, 56, 52 and 51%, respectively (Mooney, 2018;World Bank, 2021).…”

Section: Financial Development-energy Profilementioning

confidence: 99%

Is the impact of financial development on energy consumption in Jamaica asymmetric?

McFarlane

Brown

Campbell

et al. 2022

IJESM

View full text Add to dashboard Cite

Purpose The purpose of this study is to determine whether causal asymmetries exist between energy consumption and three dimensions of financial development in Jamaica. Design/methodology/approach The authors use the non-linear autoregressive distributed lag method to identify the long- and short-run associations between energy consumption and different measures of financial development in Jamaica for the period 1980 to 2018. Findings There are two central findings. First, cointegrating relationships run from the dimensions of financial development to energy consumption. Second, the authors find asymmetries in these relationships. In the long run, asymmetries are such that rising levels of financial development have a neutral impact on energy consumption. By contrast, falling levels of financial development in the long run are associated with increases in energy consumption. In the short run, the authors find evidence of asymmetries only in changes in the overall level of financial development on energy consumption. Practical implications One practical implication is that for Jamaica to avoid some of the potential negative environmental consequences resulting from the positive impact on energy consumption arising from falling levels of financial development, a strong financial development policy will be important. Social implications There will be positive social impacts from financial development in the area of climate finance. Originality/value To the authors’ knowledge, this is the first study on Jamaica that examines the financial development–energy nexus. Further, the authors use relatively new and comprehensive measures of financial development.

show abstract

Section: Financial Development-energy Profilementioning

confidence: 99%

Is the impact of financial development on energy consumption in Jamaica asymmetric?

McFarlane

Brown

Campbell

et al. 2022

IJESM

View full text Add to dashboard Cite

show abstract

“…1 Although Jamaica is one of the most highly remittance-recipient countries in the world, empirical studies on the dynamics between remittances and financial development are nearly non-existent for this country. At the same time, Mooney (2018) has noted that financial development in Jamaica has been relatively poor if not static when compared to its peers, namely countries at similar range of economic development and remittance inflow levels. Jamaica's high level of remittances and relatively sluggish improvement in financial development makes it unique among its peers.…”

Section: Introductionmentioning

confidence: 99%

Non‐linear relationship between remittances and financial development in Jamaica

Das

McFarlane

2021

International Migration

View full text Add to dashboard Cite

We examine the relationship between financial development and remittance inflows (remittances), measured as a share of GDP, within a non‐linear framework in Jamaica over the period 1980 to 2017. By applying the autoregressive distributed lag bound testing approach to cointegration, we arrive at two key results. First, there is a long‐run cointegrating relationship running from remittances to financial development. Second, remittances and financial development are non‐linearly related. Financial development is a U‐shaped function of remittances. As remittances increase, they first have a negative impact on financial development. However, after remittances reach a threshold point, their impact on financial development is positive. Taken together, the results indicate that remittances first substitute for and then complement financial development. We provide important policy suggestions such as those that would increase remittances and those that would incentivize remittance receiving households to use these inflows in the formal financial sector.

show abstract

“…Given the limited size of the domestic credit market, this heavy reliance resulted in a crowding out of private financing, as banks and other lenders allocated most of their credit capacity to the government. SeeMooney (2018) for more information. 11 For a deeper discussion of country-specific factors, seeBeck and Mooney (2021),Gauto and Mooney (2020),Giles Álvarez andMooney (2018).…”

mentioning

confidence: 99%

“…SeeMooney (2018) for more information. 11 For a deeper discussion of country-specific factors, seeBeck and Mooney (2021),Gauto and Mooney (2020),Giles Álvarez andMooney (2018). Also see the country sections of this Bulletin.…”

mentioning

confidence: 99%

Caribbean Economics Quarterly: Volume 11, Issue 2: Finance for Firms: Options for Improving Access and Inclusion

Mooney¹,

Rosenblatt²,

Graham³

et al. 2022

View full text Add to dashboard Cite

This edition of the Caribbean Economics Quarterly (Q2-2022) is a collaboration between the IDBs Caribbean Country Department and IDB Invest, which focuses on firms access to finance. The report begins by considering both the nature and history of the regions financial sector development, highlighting key measures of financial access and adequacy. It then leverages enterprise survey data developed by the Compete Caribbean partnership to assess legacy and emerging challenges facing firms from across the region, including those owned and/or operated by women. Newly available data from 2020 are compared with a previous vintage of the surveys from 2014, providing important insights into how circumstances have evolved, especially considering the COVID-19 shock. The analysis suggests that: (i) financial sectors and firms across the Caribbean face outsized challenges, particularly when compared to peers across the globe; (ii) the COVID-19 crisis appears to have further constrained access to finance; (iii) smaller firms appear to face more significant hurdles than larger ones; and, (iv) women-owned and/or operated firms face more severe challenges with respect to financial access than other firms across the region. Policies and reforms with the potential to improve financial development, access, and inclusion are highlighted, as well as successful examples of IDB support and collaboration in related areas across the Latin American and Caribbean region.

show abstract

Jamaica: Financial Development, Access and Inclusion: Constraints and Options

Cited by 6 publications

References 0 publications

Is the impact of financial development on energy consumption in Jamaica asymmetric?

Is the impact of financial development on energy consumption in Jamaica asymmetric?

Non‐linear relationship between remittances and financial development in Jamaica

Caribbean Economics Quarterly: Volume 11, Issue 2: Finance for Firms: Options for Improving Access and Inclusion

Contact Info

Product

Resources

About