Monetary Policy and Financial Inclusion in Sub-Sahara Africa: A Panel VAR Approach

Anarfo, Ebenezer Bugri; Abor, Joshua Yindenaba; Osei, Kofi A.; Gyeke-Dako, Agyapomaa

doi:10.1080/15228916.2019.1580998

Cited by 40 publications

(55 citation statements)

References 23 publications

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“…Furthermore, Granger causality estimates revealed that monetary policy effectiveness caused financial inclusion without reverse causality. As seen above, while Anarfo et al (2019) discovered a bi causal relationship, Evans (2016) found a uni-causal relationship from monetary policy effectiveness to financial inclusion.…”

Section: Monetary Policy and Financial Inclusionmentioning

confidence: 96%

“…While it has been established that conventional strategies, as discussed earlier, play a significant role in driving financial inclusion in Nigeria and elsewhere, efforts have also been made to examine the relationship between financial inclusion and monetary policy effectiveness empirically. The bulk of literature on the nexus between financial inclusion and monetary policy has focused on the extent financial inclusion improves the effectiveness of monetary policy (Anarfo et al, 2019;Mbutor & Uba, 2013). Though, literature like Evans (2016), Anarfo et al (2019) particularly made a further effort to investigate whether monetary policy effectiveness granger causes financial inclusion or financial inclusion granger causes monetary policy.…”

Section: Monetary Policy and Financial Inclusionmentioning

confidence: 99%

“…For instance, Anarfo et al (2019) using panel VAR to investigate the nexus between monetary policy and financial inclusion in Sub-Saharan Africa, finds the existence of a bi causal relationship between financial inclusion and monetary policy (proxied by monetary policy rate). Additionally, Evans (2016) used a panel Vector Error Correction Model (VECM) to investigate the nexus between monetary policy and financial inclusion using data from fifteen African countries.…”

Section: Monetary Policy and Financial Inclusionmentioning

confidence: 99%

“…Hence, the long-term inflation rate has been used to establish the effectiveness of monetary policy with inflation targeting as the major tool (Rasche & Williams, 2007). Anarfo, Abor, Osei, and Gyeke-Dako (2019) suggested that the effectiveness of monetary policy in achieving the objective of influencing aggregate demand depends on the rate of financial inclusion in an economy. The extent to which financial inclusion can be achieved also depends on the effectiveness of the monetary policy, which suggest a two-way causation between both.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Monetary Policy Effectiveness and Financial Inclusion in Nigeria: FinTech, ‘the Disrupter’ or ‘Enabler’

Joseph

Chinyere²,

Pauline³

et al. 2021

International Journal of Applied Economics, Finance and Account

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The extent monetary policy is effective in achieving financial inclusion has been scarcely investigated in the literature. Hence, this study examined the extent monetary policy is effective in achieving financial inclusion in Nigeria and whether FinTech improves or impedes this relationship. Quarterly time series data spanning from 2009 to 2019 from the Central Bank of Nigeria were used for estimations. Johansen's cointegration test and fully modified OLS were used to carry out the analysis. The result shows that measures of monetary policy effectiveness, such as inflation rate and lending rate all had a significant effect on financial inclusion in the country. It was also discovered that accounting for FinTech in the model improves the effectiveness of the monetary policy on financial inclusion in Nigeria, contrary to popular assertion that Fintech impedes monetary policy effectiveness. The study concludes by emphasizing the role of monetary policy in achieving financial inclusion in Nigeria.

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Section: Monetary Policy and Financial Inclusionmentioning

confidence: 96%

Section: Monetary Policy and Financial Inclusionmentioning

confidence: 99%

Section: Monetary Policy and Financial Inclusionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Monetary Policy Effectiveness and Financial Inclusion in Nigeria: FinTech, ‘the Disrupter’ or ‘Enabler’

Joseph

Chinyere²,

Pauline³

et al. 2021

International Journal of Applied Economics, Finance and Account

View full text Add to dashboard Cite

show abstract

“…The study [10] investigated monetary policy and financial inclusion in Sub-Sahara Africa using a panel VAR Approach. The findings show that a bi-causal relationship exists between monetary policy and financial inclusion.…”

Section: Introductionmentioning

confidence: 99%

Estimation of CPI of Some Sub-sahara African Countries: Panel Data Approach

Olufunmike¹,

Femi²,

Favour³

et al. 2019

AJTAS

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One of the economic indicators that are necessary to provide information on the state and progress of country is the Consumer Price Index (CPI) which measures changes in the price of goods and services over a certain period of time. An effective monetary policy depends on the ability of economists to develop a reliable model that could understand the ongoing economic processes and predict future developments. Hence, this study is aimed at estimating CPI (a component of Inflation) in 20 Sub-Sahara African (SSA) countries in relation to Broad Money (BM), Export Rate (EXP), Gross Domestic Product (GDP) and Private Consumption Expenditure (PCE) using panel data approach. The data was extracted from the World Bank Data Bank for a period of 30 years (1987-2016). The Fixed Effect Model (FEM) was employed and the model summary was computed using the panel least squares. The Variance Inflation Factor (VIF) was used to test for the presence of multicollinearity. The result of the analysis shows that the CPI for SSA countries ranges from 0.0007% to 298.51% (2010=100) with an average of 59.76%. All the predictors included in estimating the CPI have significant effect at 5% level except the GDP. The estimated panel regression equation is CPI it =71.4449-0.1735BM it-0.3309EXP it +7.4338e-12GDP it +1.1335e-10PCE it. The estimated coefficient of determination is 0.853 which means that 85.3% of the total variation in CPI can be accounted for by the variations in the macroeconomic variables included. The VIF for all the variables is less than 3.o meaning that there is no sign of multicollinearity and therefore, there is no correlation among the predictors. It was concluded that the FEM estimated can be used to assess the behavior of the CPI in the nearest future. Moreover, 85.3% of the variations in CPI can be explained by the economic variables used as independent variables. It is recommended that efforts should be geared towards improving the input of these variables in the economy such that appropriate relationship will exist between them and the CPI in the SSA nations.

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Poverty, entrepreneurship, and economic growth in Africa

Ajide

Dada

2023

Poverty & Public Policy

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Literature abounds on the impact of entrepreneurship on economic growth, but with little attention to the role of entrepreneurship in poverty reduction. Furthermore, little attention has been paid to the triangular relationship among poverty reduction, entrepreneurship, and growth in Africa. In this study, we examine the dynamic relationship among these three variables using data collected from 18 African countries. Data are sourced from World Bank development indicators and the World Bank's entrepreneurship database. The study uses batteries of panel data estimation techniques to analyze the data. The following findings emerged: (1) there is bidirectional causality between poverty reduction and growth. (2) There is bidirectional causality between growth and entrepreneurship in Africa. (3) There is unidirectional causality moving from entrepreneurship to poverty reduction. (4) Entrepreneurship significantly reduces poverty in Africa. (5) Impulse response shows that all the variables positively respond to shocks in each other. The study concludes that entrepreneurship enhances poverty reduction in Africa and has a significant impact on economic growth.

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Monetary Policy and Financial Inclusion in Sub-Sahara Africa: A Panel VAR Approach

Cited by 40 publications

References 23 publications

Monetary Policy Effectiveness and Financial Inclusion in Nigeria: FinTech, ‘the Disrupter’ or ‘Enabler’

Monetary Policy Effectiveness and Financial Inclusion in Nigeria: FinTech, ‘the Disrupter’ or ‘Enabler’

Estimation of CPI of Some Sub-sahara African Countries: Panel Data Approach

Poverty, entrepreneurship, and economic growth in Africa

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