South Africa’s Financial Development and its Role in Investment

Muyambiri, Brian; Odhiambo, Nicholas M.

doi:10.2478/jcbtp-2018-0005

Cited by 11 publications

(6 citation statements)

References 15 publications

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“…Supporting the findings of Ndikumana, 2005, Nazlioglu et al , 2009, Demirhan, 2016, Sakyi et al , 2016, Muyambiri and Odhiambo, 2017 and 2018a, b, c, d present study finds long run relationship between financial development and Investment. The results indicate that in four specifications, F -statistics is greater than the upper critical bound at 1% significance level and in two specifications, F -statistics is greater than the upper critical bound at 5% significance level.…”

Section: Empirical Findingssupporting

confidence: 88%

“…As the results show that both bank-based and market-based financial development indicator affect the level of domestic investment in India. The findings are in consistence with Rousseau (1999), Xu (2000), Rousseau and Vuthipadadorn (2005), Asongu (2014), Muyambiri and Odhiambo (2017, 2018a, b, c, d), Babarinde et al (2020) and Iheonu et al (2020).…”

Section: Discussionsupporting

confidence: 62%

“…The study finds the presence of uni-directional causality from investment to bankbased financial development indicator and stock market development to investment. Muyambiri and Odhiambo (2016, 2017, 2018a examine the impact of both bankbased and market-based financial development on investment in Botswana during 1976-2012, using the ARDL bound testing approach. The empirical result shows that while bank-based financial development has both a long-run and short-run positive impact on investment in Botswana, market-based financial development has no impact on investment.…”

Section: Empirical Evidencementioning

confidence: 99%

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Does financial development matter for domestic investment? Empirical evidence from India

Sinha

Shastri

2021

SAJBS

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PurposeThis paper empirically examines the impact of financial development on domestic investment in India for the period 1989–2017.Design/methodology/approachThis study employs the autoregressive distributed lag (ARDL) bounds testing approach to co-integration to test the long-run relationship between financial development and domestic investment. To test the direction of causality, Toda–Yamamoto causality test and vector error correction model (VECM) Granger causality/Block Exogeneity Wald test have been employed. Investment has been measured by Gross Capital Formation. To capture various aspects of financial development in India, eight alternative indicators (both bank based and market based) have been used. With the help selected indicators, a composite index (FINDEX) of financial development has been constructed using principal component analysis (PCA).FindingsThe estimated result finds evidence in favour of positive, short-run and long-run impact of financial development on investment in the Indian economy. Both bank-based and market-based indicators are found to significantly affect the level of investment. The significant effect of efficiency-based financial development indicators (both bank based and market based) upon domestic investment implies that there is a need to implement policies that ensure the efficiency of financial intermediation.Originality/valueTo the best of authors' knowledge, not much research has been done to explore the relationship between financial development and domestic investment, especially in the case of Indian economy. This study also tries to find the impact of bank-based and market-based financial development indicators upon domestic investment to explore banks vs market issue.

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Section: Empirical Findingssupporting

confidence: 88%

Section: Discussionsupporting

confidence: 62%

Section: Empirical Evidencementioning

confidence: 99%

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Does financial development matter for domestic investment? Empirical evidence from India

Sinha

Shastri

2021

SAJBS

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“…Furthermore, the development of financial resources is another important measure of the progress of renewable energy infrastructure investments (Muyambiri and Odhiambo, 2018). The biggest problem with renewable energy costs is that they require a lot of money at the start .…”

Section: Literature Reviewmentioning

confidence: 99%

Glasgow climate change conference (COP26) and its implications in sub-Sahara Africa economies

et al. 2023

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“…In many cases, the root of the problem is traced back to lack of access to affordable finance Moreno 2011;Rewilak 2017). This is the case even in countries with welldeveloped financial sectors such as South Africa (Abel et al 2019;Muyambiri & Odhiambo 2018). There is a significant amount of evidence that links financial sector development and growth (Akhter, Liu & Daly 2010;Jeanneney & Kpodar 2011;Kavya & Shijin, 2020;Kheir 2018;Moreno 2011;Weychert 2020).…”

Section: Introductionmentioning

confidence: 99%

Financial inclusion and poverty: The transmission mechanisms

Simatele¹

2021

Financial Inclusion: Basic Theories and Empirical Evidence From African Countries

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Peer Review DeclarationThe publisher (AOSIS) endorses the South African 'National Scholarly Book Publishers Forum Best Practice for Peer Review of Scholarly Books'. The manuscript was subjected to rigorous two-step peer review prior to publication, with the identities of the reviewers not revealed to the author(s). The reviewers were independent of the publisher and/ or authors in question. The reviewers commented positively on the scholarly merits of the manuscript and recommended that the manuscript be published. Where the reviewers recommended revision and/or improvements to the manuscript, the authors responded adequately to such recommendations. v Research JustificationFinancial inclusion has been noted as a key driver of poverty alleviation and growth. Yet most of the scholarly work that exists lacks a comprehensive discussion on how the poor interact with financial services and the channels through which such services can affect their livelihoods. This book addresses this gap in scholarship. This is important in creating a substantive understanding of how useful financial inclusion is as a concept and practice. The number of articles written on the determinants and effects of financial inclusion at a broad cross-country level is growing. Yet almost all of this literature assumes the impacts of financial inclusion without paying attention to how these effects are transmitted. An understanding of the transmission mechanisms is fundamental to effective application. Moreover, a rapidly developing discourse in financial inclusion literature is digital finance. Much has been written and is being written about the benefits of digital finance with hardly any discussion of the channels through which such benefits are transmitted. This book discusses the various transmission mechanisms through which not only traditional finance can affect the poor but also how digital finance is transmitted to poverty. Most significantly, the chapter on digital finance provides cross-country evidence for African countries.Moreover, the often-macro perspective in the financial inclusion literature implies that country-specific nuances that can provide critical learning points are often overlooked. This book provides six original empirical case studies of financial inclusion in six African countries. The case studies cover a broad area of topics most important to African countries and highlight the unique African setting. The role of cooperative financial institutions and social entrepreneurship presented in this volume, for example, is hardly researched in Africa and yet is an important vehicle to circumvent the restrictive and exclusive bank-based financial markets unique to Africa. The chapters employ various methodologies depending on the topic being addressed in the chapter. Most of these use quantitative methods. Five chapters are empirical in nature and use inferential statistics, whilst the other two use mixed methods with qualitative data as well as descriptive statistics. This scholarly book offers researchers who focus on f...

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South Africa’s Financial Development and its Role in Investment

Cited by 11 publications

References 15 publications

Does financial development matter for domestic investment? Empirical evidence from India

Does financial development matter for domestic investment? Empirical evidence from India

Glasgow climate change conference (COP26) and its implications in sub-Sahara Africa economies

Financial inclusion and poverty: The transmission mechanisms

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