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on Financial Development and Growth |
| By: | Yimer, Addis |
| Abstract: | To capture the impact that cross-country resource endowment differences may have on the FDIgrowth relationship, this study investigates the FDIgrowth nexus in Africa by categorizing the countries as resource-rich and resource-scarce, for the period 20002017. Thus, the study is a modest attempt to answer the following main questions: a) Does FDI inflows contribute to economic growth in the host country after controlling for endogeneity? b) Does being natural resource abundant/scarce country alter the FDIgrowth nexus? Using a System GMM, both the direct and interaction effects of FDI on growth are investigated in POLICY BRIEF The FDI-Growth Nexus: A Comparative Analysis of Resource-Rich and Resource-Scarce African Economies Addis Yimer October 2023 / No.788 2 Policy Brief No.788 a comparative framework across resource-rich and resource-scarce African countries. The results show that the effects of FDI on economic growth vary depending on resource richness of countries. While FDI is found to affect growth positively and significantly in resource-scarce African economies, no significant effect of FDI on growth is identified for the resource-rich category. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:3808f5e4-f0d6-477d-8d80-2b82e3bd366e |
| By: | Taiwo, Shakirudeen; Olofin, Sodik |
| Abstract: | The emerging trend of Foreign Direct Investments (FDI) in Nigeria is diverging in favour of technology, ICT, and manufacturing, which are becoming more sensitive for the evolution of the labour force. With the low levels of technology advancement, skill accumulation, and human capital stock in developing countries, and Nigeria especially, FDI inflows have been identified as major sources of technology, managerial, and technical know-how spillover to developing countries. The accruing knowledge spillover effects of FDI inflows are critical for human capital development to propel technological progress and sustainable economic growth. Therefore, this study investigated the impacts of FDI on human capital and the economic prospects of workers in Nigerias manufacturing and ICT sectors and highlighted the country specific conditions needed to adequately internalize FDI spillover effects on Nigeria's human capital. This study's data analysis is based on a combination of qualitative and quantitative approaches. The findings revealed that FDI inflows impact human capital development in Nigeria. Meanwhile, the kind of FDI inflows, the measure of human capital development and the sector matter in the relationship, as aggregated analysis yields little knowledge benefit. Specifically, this study revealed that all the types of FDI, except merger and acquisition, have varying impacts on the components of human capital development, while efficiency-seeking FDI is the most important. The policy implication from this study re-emphasizes the need for further improvement in the regulatory environment, general ease of doing business and incentive management. |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:2ddedcc0-a133-481b-9807-7da093a085d0 |
| By: | BAZIE, Porto; Alain SIRI, Alain |
| Abstract: | Meeting the challenge of human capital development is a concern for governments and development practitioners in developing countries. However, foreign direct investment (FDI) inflows appear to be a means of meeting this challenge by increasing incomes, mobilising tax revenues, bvoosting productivity and disseminating skills and technologies. The purpose of this paper is to analyse the FDI effects on human capital development through the channel of tax revenue mobilisation. A structural simultaneous equation model, ARDL modelling, and interviews, were used to analyse the data. The results indicate that FDI is a vehicle for tax revenue mobilisation. They also show that tax revenues increase spending on primary, secondary and tertiary education, while FDI significantly enhances primary and tertiary education levels in the long term but reduces secondary education levels in Burkina Faso. In the short term, FDI reduces tertiary education levels but does not affect primary and secondary education levels. The results further show that the Corporate Social Responsibility (CSR) channel is also an effective means of developing human capital through FDI. |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:04acfa37-8c1b-46ac-832d-1233b968a880 |
| By: | Herve, Nenghem Takam |
| Abstract: | The objective of this thesis is to analyze the effects of capital flows on the economic cycles of the countries of the CEMAC zone. We opted for our thesis for an econometric approach based on panel data made up of all CEMAC countries. Our study period extends from 1985 to 2019. In the first chapter, we analyze the effect of remittances on fluctuations in economic activity in CEMAC countries. The methodological approach used is the PVAR. The results of this first chapter show that remittances directly influence fluctuations in the economic activity of CEMAC countries, on the one hand. And on the other hand, remittances play a stabilizing role insofar as they are counter-cyclical in nature with fluctuations in production per capita; which suggests, according to the literature, an altruistic motivation. The study also indicates that remittances, although interacting with other variables, can play a key role in mitigating the effects of negative shocks on production. Moreover, the relationship is unidirectional from remittances to fluctuations in economic activity. In the second chapter, we examine the effects of official development assistance on the economic cycles of CEMAC countries. This objective was achieved by using the ARDL method to capture the relationship between APD and cycle in the long term. The results reveal that in the short term, official development assistance, in addition to being negative, has no significant effects on the output gap of CEMAC countries. On the other hand, ODA, in addition to having a positive and statistically significant long-term influence on the output gap, is procyclical. This significance of ODA on the output gap is not negligible. Finally in the third chapter, we identify the link between FDI and the synchronization of economic cycles in the CEMAC zone. The methodology used to achieve this objective is based on Parks Generalized Feasible Least Squares (1967). The results show, on the one hand, that FDI has a positive effect on the synchronization of the economic cycles of the countries of the CEMAC zone; and on the other hand that the exuberance of economic cycles through short-term flows, international value chains resulting from foreign direct investment and specialization induced by risk sharing are the channels through which direct investment foreigners affect the synchronization of the economic cycles of the CEMAC countries. Keywords: Remittances, official development assistance, foreign direct investment, economic cycles, CEMAC. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:1ae3f317-7aff-4baf-a6a4-13c9a29de1aa |
| By: | Effiong, Ekpeno L.; Asuquo, Emmanuel E. |
| Abstract: | Does financial openness matter for remittances? Are the effects of financial openness on remittance dependent on the levels of financial and institutional development? This paper investigates these questions using panel data for 31 sub-Saharan African countries over from 1990 to 2015 and using a dynamic panel system generalized method of moments (GMM) estimation technique. The results show that financial openness, albeit having a declining effect, does not significantly influence the inflow of remittances into the region. In contrast, when conditioned on the levels of financial development and institutional quality, POLICY BRIEF Financial Openness and Remittances: Evidence from Sub-Saharan Africa Ekpeno L. Effiong and Emmanuel E. Asuquo October 2023 / No.804 2 Policy Brief No.804 financial openness tends to significantly increase remittances. However, this effect declines with significant improvement in institutional quality and a well-developed financial sector. Thus, financial openness substitutes financial and institutional development in fostering remittances in the region. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:1b5bc0b0-b6e2-4c6d-81f6-a305fc3072e5 |
| By: | Kirui, Benard Kipyegon |
| Abstract: | Over the past decade, remittance flows to sub-Saharan Africa grew at an average of 12.9% and is expected to increase in the coming decade, however, the high cost of remittances remains a constraint that limits regular remittance flows. About 9.1 percent of remittance flows to sub-Saharan Africa is absorbed by transfer cost making it the most expensive remittance recipient region. With evidence that mobile money services reduce transaction costs for internal remittances, the introduction of mobile money services in international remittances should have the same effect. Against this backdrop, this study investigates the effect POLICY BRIEF The Role of Mobile Money in International Remittances: Evidence from Sub-Saharan Africa Benard Kipyegon Kirui October 2023 / No.805 2 Policy Brief No.805 of introduction of mobile money services on international remittance transfer costs and determine the effect of international remittance transfer costs on international remittance flows. Least squares dummy variable model and a system GMM is applied to address the first and second objective, respectively. International remittance transfer cost is lower by 46% for corridors that incorporate mobile money in international money transfer channels compared to those that do not. Controlling for other factors, the gap between corridors that incorporate mobile money and those that do not goes down to 11.5%. Thus, a reduction in remittance transfer costs can be achieved by improving cross border mobile money services interoperability. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:6510bb93-0565-4581-9082-45daca72918a |
| By: | Okello, Jimmy Apaa |
| Abstract: | The increased use of mobile money for cross-border transfers can lower the costs of cross-border remittances. The reduction in costs in turn can spur additional increases in remittances as it frees up the incomes of the senders. This study first estimated the remittance elasticity to cost by applying the pooled mean group method to quarterly panel data of three country sources of remittances to Uganda for the period 2013Q1- 2022Q4. The results showed that remittances are highly elastic to costs. This implies that a reduction in costs can spur larger remittances than is currently observed. The study then created two regimes (one with lower and another with higher growth of remittances) in which we assess the impact of remittances on monetary policy effectiveness. We use the local projection model on quarterly data for the period 2002Q3-2023Q1. The results showed that the responses of output gap, inflation, and policy rates to shock in monetary policy are broadly similar in magnitude and direction across both regimes. However, the policy rate and inflation responded sluggishly in the regime with higher growth of remittances, which suggests that in this regime, monetary policy is not as potent as it would be in the regime with lower remittance growth. Thus, in a regime with higher remittance growth, the case for an independent monetary policy is weakened. Thus, in this regime, for a central bank to credibly commit to an inflation target, it must adopt a fixed exchange rate system (or variants therein). |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:03497339-fe62-48ef-b7a2-252d7a9b49fe |
| By: | Bayale, Nimonka; Kouassi, Brigitte Kanga |
| Abstract: | This paper introduces model uncertainty into the empirical study on the determinants of development aid at the regional level. This is done by adopting a panel Bayesian model averaging approach applied to the data of G5 Sahel countries, spanning the period 19802018. Our results suggest that, among the regressors considered, those reflecting terrorist attacks, trade stakes including military expenditure, socio-economic prospects and institutional conditions tend to receive high posterior inclusion probabilities. The study explores the relationship between these regressors and foreign aid by employing the fully POLICY BRIEF The Devil is in the Details: On the Robust Determinants of Development Aid in G5 Sahel Countries Nimonka Bayale and Brigitte Kanga Kouassi October 2023 / No.810 2 Policy Brief No.810 modified ordinary least squares (FMOLS), the continuously updated fully modified (CUP-FM), the dynamic ordinary least squares (DOLS) long-run estimators, and the Dumitrescu and Hurlin (2012) panel causality test. The results highlight three concerns that may justify aid flows towards G5 Sahel countries: (a) peace and security considerations, (b) the economic interest of donors, and (c) recipient economic needs. The paper recommends that Sahel countries should strengthen international cooperation for security and peace, in compliance with goal 16 of the 2030 Agenda for Sustainable Development of the United Nations (UN) and goal 13 of the African Unions (AU) Agenda 2063. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:a59f4c7f-953c-44ed-8741-63a795dd30bf |
| By: | Dedehouanou, Sessinou Erick Abel |
| Abstract: | This study examined the fragmentation of official development assistance (ODA) in Sub-Saharan African countries and the role played by development outcomes. Initially, it analyzed the fragmentation of aid over the period 2000 to 2019 using the Theil index. On the donor side, it appears that fragmentation of aid from bilateral Development Assistance Committee (DAC) donors and bilateral non-DAC donors has decreased significantly in recent years. In addition, the aid provided by bilateral DAC donors has been less fragmented than that given by non-DAC bilateral donors. Several traditional donors and so-called emerging donors have contributed to the fragmentation of aid in Sub-Saharan African countries. As for aid recipients, the countries of Southern Africa or those belonging to the group of so-called fragile States have suffered less from aid fragmentation than their counterparts in Central, East, and West Africa and those belonging to the group of non-fragile States. We used an instrumental variables method and a panel quantile regression with non-additive fixed effect to assess the effect of the development factors on aid fragmentation. The results obtained validated that the fragmentation of aid can be reduced by better coordination of aid at the sectoral level and above all by internal development factors (structural transformation policies and equity in the use of resources). Indeed, no solution to the fragmentation of aid is possible without the implementation of structural policies to achieve a level of development capable of coordinating the action of donors and equity in the use of resources allowing the satisfaction of the needs of various social groups. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b15d0df6-44af-4978-8eca-d54eb5a49bbd |
| By: | Charles Kenny (Center for Global Development); Songtao Duan (Center for Global Development); Zack Gehan (Center for Global Development) |
| Abstract: | This paper tests the hypothesis that the growing proportion of World Bank contracts granted to Chinese firms, particularly in the infrastructure sector, may undermine results by exposing projects to lower standards of work. We find that such concerns are unfounded. We create a dataset of World Bank projects that merges data on contracts under the project and project features and outcomes. We examine the association between contracting features and outcomes including the proportion of contract values awarded to non-borrower firms from major supplier countries. We find that the share of project contract value awarded to Chinese firms is not a correlate with better or worse project outcomes. More broadly, borrower country features explain some variance in outcomes but indicators including sector, year, the proportion of contracts awarded competitively, and the proportion that are for goods or civil works have little explanatory value. This (non-causal) evidence is consistent with the idea that World Bank procurement rules broadly work to ensure poor contracting choices are not a major determinant of project outcomes. |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:wpaper:715 |
| By: | Kirill Borissov (Non-government Educational Institution "European University at St. Petersburg", Russia); Mikhail Pakhnin (University of the Balearic Islands, Spain); Ronald Wendner (University of Graz, Austria) |
| Abstract: | We study the effects of envy (relative consumption concerns), drawing on evidence that preferences typically exhibit present bias. We employ a Ramsey-type model with agents who differ in initial capital endowments and account for present-biased envy: agents are naive and care about how their consumption levels compare to those of others only in the current period. Present-biased envy, unlike permanent envy, significantly affects both the level of inequality and the aggregate income level in an economy. First, it generates the Matthew effect (the relatively rich get richer while the relatively poor get poorer), and after a finite time, only the initially wealthiest agents own the entire capital stock and the debts of others who are in the maximum borrowing state. Second, in contrast to both an economy without envy or with permanent envy, present-biased envy makes agents effectively more impatient, reducing the long-run capital stock and aggregate income level. |
| Keywords: | Relative consumption, Envy, Time inconsistency, Sliding equilibrium, Perfect foresight, Wealth distribution, Ramsey conjecture. |
| JEL: | D15 D31 D50 D91 O40 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2025-02 |
| By: | Ufuk Akcigit (University of Chicago); Raman S. Chhina (University of Chicago); Seyit Cilasun (TED University); Javier Miranda (Halle Institute for Economic Research, and Friedrich-Schiller University Jena); Nicolas Serrano-Velarde (Bocconi University) |
| Abstract: | Utilizing near real-time QuickBooks data from over 1.6 million small businesses and a targeted survey, this paper highlights the critical role credit card financing plays for small business activity. We examine a two year period beginning in January of 2021. A turbulent period during which, credit card usage by small U.S. businesses nearly doubled, interest payments rose by 60%, and delinquencies reached 2.8%. We find, first, monthly credit card payments were up to three times higher than loan payments during this time. Second, we use targeted surveys of these small businesses to establish credit cards as a key financing source in response to firm-level shocks, such as uncertain cash flows and overdue invoices. Third, we establish the importance of credit cards as an important financial transmission mechanism. Following the Federal Reserve’s rate hikes in early 2022, banks cut credit card supply, leading to a 15.75% drop in balances and a 10% decline in revenue growth, as well as a 1.5% decrease in employment growth among U.S. small businesses. These higher rates also rendered interest payments unsustainable for many, contributing to half of the observed increase in delinquencies. Lastly, a simple heterogeneous firm model with a cash-in-hand constraint illustrates the significant macroeconomic impact of credit card financing on small business activity. |
| Keywords: | Small Businesses, Entrepreneurship, Credit Cards, Credit, Job Creation, Turnover |
| JEL: | J23 J63 O47 |
| Date: | 2025–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2025-0003 |
| By: | Gakpa, Lewis-Landry |
| Abstract: | This paper investigates how financial inclusion affects individuals' decisions to start businesses in the context of six sub-Saharan African countries, using micro-data from the FinScope and FinAccess surveys. To do so, we use an instrumental variable (IV) technique to assess the empirical relationships. Overall, the results reveal that access to both banking services, formal non banking services, informal financial services and mobile money services positively and significantly influenced the decision to start businesses in the six countries. Furthermore, although the results show that a range of both demand POLICY BRIEF Financial Inclusion and Entrepreneurship in Six sub-Saharan African Countries: Evidence from Finaccess and Finscope Survey Data Lewis-Landry Gakpa October 2023 / No.793 2 Policy Brief No.793 and supply side barriers prevent individuals from accessing banking services for entrepreneurial purposes, supply side constraints are the most common barriers to individuals starting a business. In view of the above, policy interventions should first aim at creating an enabling environment to increase people's access to all types of financial services and secondly, address both supply and demand side constraints to promote entrepreneurship and economic growth. All of these measures should be aimed at increasing the level of financial inclusion with a view to stimulating entrepreneurial activities, which are the real pillars in the development and poverty reduction process in sub-Saharan African countries. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:4387c5f4-4f65-4460-829f-be0dcfa82685 |
| By: | Yoshiki Ando (Boston University); Emin Dinlersoz (Bureau of the Census); Jeremy Greenwood (University of Pennsylvania); Ruben Piazzesi (University of Pennsylvania) |
| Abstract: | Abstract The adoption of advanced technologies has important implications for employment and growth. The analysis of firm-level data from US Census Bureau indicates that firms with advanced technologies are disproportionately backed by venture capital (VC). While both advanced technology use and VC backing separately matter significantly for firm outcomes, VC backing has a larger effect on firms with advanced technology. A model of startups is constructed featuring decisions to use advanced technology and VC. The model is matched up with facts about firms' employment, technology use, and VC reliance. The implications of business taxation and subsidies are studied, and the significance of the availability of advanced technology and VC in the economy is quantified. |
| Keywords: | Advanced technology, banks, capital gains taxation, corporate income taxation, difference-in-difference analysis, employment, firm-level data, reallocation effect, startups, subsidies, synergy, venture capital, technology adoption, US Census data |
| JEL: | O30 O40 G20 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:eag:rereps:40 |
| By: | Eichenauer, Vera; Köppl, Stefan; Köppl-Turyna, Monika |
| Abstract: | In this paper we analyze the effects of investment screening on cross-border venture capital investments in Europe between 2007 and 2022. The data we work with is originally based on PRISM data which has been extended by Eichenauer and Wang and which we combine with deal data from Preqin to assess investment activity. Our results point to unintended negative effects: while the number of actually blocked deals has remained very low, the associated uncertainty and an increase in transaction costs have led to a significant decline in cross-border deals. The effects are stronger in the case of financial (i.e. "non-strategic") investors, for late-stage venture capital deals, and for deals with investors from non-OECD countries. Moreover, we observe changes in the size of deals and their structure. This has profound policy implications for the financing of innovation in Europe. |
| Keywords: | cross-border venture capital, investment screening, Europe, transaction costs |
| JEL: | F55 F21 G24 L14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:313651 |
| By: | World Bank |
| Keywords: | Finance and Financial Sector Development-Banks & Banking Reform Finance and Financial Sector Development-Financial Regulation & Supervision Science and Technology Development-Technology Innovation |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41600 |
| By: | Massacky, Joseph B.; Ajefuand Falecia |
| Abstract: | This paper analyses the impact of adoption of mobile money services on child labour and educational outcomes in Tanzania using an instrumental variables strategy. We identify heterogenous impacts across childs gender and age, and we find a positive and significant effect of mobile money adoption on educational outcomes, but the results reveal a negative and significant impact on child labour in the farm and households. Moreover, using mediation analysis, we identify remittances and education expenditure as the potential pathways through which mobile money adoption affects child labour and educational outcomes. POLICY BRIEF How Does Adoption of Mobile Money Technology Affect Child Labour and School Enrolment? Joseph B. Ajefuand Falecia Massacky October 2023 / No.806 2 Policy Brief No.806 Overall, the results suggest that policies that increase mobile money adoption can be effective in improving child educational outcomes and lead to a decline in the incidence of child labour |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:080c5f45-7d69-482a-b9fe-1ea7c03bb21d |
| By: | Richard Davis; Robert Rusconi; Aaron Levine |
| Keywords: | Finance and Financial Sector Development-Finance and Development Social Protections and Labor-Social Funds and Pensions Macroeconomics and Economic Growth-Investment and Investment Climate Finance and Financial Sector Development-Capital Markets and Capital Flows |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41487 |
| By: | Ana Fiorella Carvajal; Ricardo Bebczuk |
| Keywords: | Finance and Financial Sector Development-Capital Markets and Capital Flows |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41408 |
| By: | Muriu, Peter |
| Abstract: | Existing literature shows that several factors drive loan loss provisioning among banks. However, little is known on this topic in the African banking context and specifically Kenya's banking industry. Using hand-collected annual bank-level data for the period 2002 to 2018, this paper investigates whether provisioning behaviour depends on banks' idiosyncratic or systematic factors. The study also investigates whether provisioning is pro or counter-cyclical through business and credit cycles and whether provisioning behaviour is heterogeneous for different bank groups. Estimation results reveal that provisions are used for capital and POLICY BRIEF What Explains Provisioning Behaviour in the Banking Industry? Evidence from an Emerging Economy Peter Muriu October 2023 / No.787 2 Policy Brief No.787 earnings management, but the findings are sensitive to bank size and ownership status. Further, the evidence suggests that provisioning reflects changes in asset quality and is counter-cyclical to the business cycle. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:897bd92d-d979-419b-89cd-181915d29b7a |
| By: | Emekaraonye, Chukwunenye Ferguson; Dick, Emmanuel Ikechukwu; Agu, Chukwuma |
| Abstract: | Using a recursive structural vector autoregressive model and quarterly data from 1986Q1 to 2019Q4, this study examines the transmission mechanism from monetary policy instruments, specifically the monetary policy rate, base money, and nominal exchange rate, to outcome variables (prices and credit to the private sector) in Nigeria. The data showed structural breaks in 2004Q2, 2009Q3 and 2014Q3, which coincided with the 2004 banking consolidation, the 2009 Sanusi-led regulatory measures and the appointment of Godwin Emefiele as the Governor of the Central Bank of Nigeria in 2014. Accordingly, policy instrument transmission tests were conducted along three scenarios 2004, 2009 and 2014 to evaluate the changes that may have been imposed on the policy transmission mechanism by the reforms. Under the 2004 consolidation scenario, the reforms strengthened only the interest rate anchor (monetary policy rate), causing it to be effective in influencing credit to the private sector (CPS). Innovations in other monetary policy instruments led to insignificant responses in the outcome variables. Even base money, which previously impacted both prices and credit to the private sector, became insignificant and ineffective after 2004. Sanusis regime did not strengthen the impact of any of the monetary policy instruments on prices and credit to the private sector. Base money, that impacted outcome variables in some periods before 2009, became insignificant thereafter. Similarly, the 2014 development and sectoral support programmes under Emefiele also did not strengthen monetary policy instruments. Overall, the study affirms the position that monetary policy reforms may not always strengthen policy instruments to regulate or influence prices and credit to the private sector, especially when the transmission is indirect. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:db533685-8639-4e1e-9f2b-01f377dda41b |
| By: | Nogues-Marco, Pilar |
| Abstract: | Payment systems evolved from decentralized networks to centralized systems coordinated by a national bank. Contrary to the view that centralization was a natural economic process driven by the gradual concentration of interbank deposits in reputable banks, this research highlights state-driven institutional change. In Spain, the Bank of Spain secured a monopoly on national banknote issuance in 1874 during a civil war, despite opposition from regional issuing banks. While Northern Spain’s industrial growth challenged Madrid’s dominance as the payment system’s center, political motivations ultimately cemented Madrid as Spain’s geographical monetary center to support the nation-state’s building. |
| Keywords: | Payment systems, National issuing banking, Monetary geography, Political sovereignty, Systèmes de paiement, Banque nationale d’émission, Géographie monétaire, Souveraineté politique |
| JEL: | N23 G21 E58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gnv:wpaper:unige:183332 |
| By: | Falk Laser (ABC economics, Berlin); Alexander Mihailov (Department of Economics, University of Reading); Jan Weidner (Federal Ministry for Economic Affairs and Energy, Berlin) |
| Abstract: | This paper fills a gap in the data by country -- and the corresponding comparative analysis of patterns and trends over the past quarter century -- in the composition of foreign exchange (FX) reserves and monetary gold in total international reserves, typically held by central banks. The monetary mystique since the 1980s and the related unwillingness of central banks to disclose the composition of their official reserves until about the turn of the millennium have made such an area of study a terra incognita to the wider profession. Our ambition with this paper is to cast light, also providing the data online, on the relative importance and reshufflings of the US Dollar, the Euro, the Japanese Yen, the British Pound, the Australian Dollar, the Canadian Dollar, the Chinese Yuan or Renminbi and monetary gold as international reserves in the recent times of crises, wars and geopolitical reconfigurations. We find that the US Dollar retains its dominance inherited from the Bretton Woods system, but the Euro and perhaps the Yuan may increase their reserve shares in the decade ahead, with a return to gold in official reserves already obvious since at least the Global Financial Crisis. Our rich and diverse dataset, and the insights from it we highlight, is the most up-to-date and comprehensive overview of the field, covering 7 major currencies and 64 countries in terms of FX shares, and a subset of 50 for which we also provide the gold shares, in an unbalanced panel since the late 1990s. |
| Keywords: | currency denomination of foreign exchange reserves, central banks, gold shares in total international reserves, visualizations by country and region, stylized facts and key insights |
| JEL: | F31 F32 F33 F41 F62 N40 |
| Date: | 2025–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2025-01 |
| By: | Okumu, Ibrahim Mike; Nathan, Sunday; Bbaale, Edward |
| Abstract: | This paper aims to analyze the relationship between technology adoption and access to credit by farmers in Tanzania, with particular focus on spatial spillover effects on technology adoption. We examine new technology diffusion by farmers through their peers and measure geographical proximity using farms GIS localization data. Using the 2012-2013 Tanzanian Household Survey and a spatial lag probit model, we find evidence that farmers access to finance leads to increased agricultural technology adoption, and that the spillover effect plays a role in this process. In addition, our results are robust over a 3-year period (i.e., POLICY BRIEF Technology Adoption and Access to Credit in Tanzania: A Spatial Econometric Analysis Ibrahim Mike Okumu, Sunday Nathan and Edward Bbaale October 2023 / No.800 2 Policy Brief No.800 2008-2009, 2010-2011, and 2012-2013). Finally, evidence of the existence of spillover effects in the adoption of agricultural technology suggests that interactions between farmers who are 'geographical neighbours' should be supported/exploited to achieve substantial efficiency and savings in new agricultural technology extension. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:ddb73706-6cd7-430c-b45f-73aea91ce596 |
| By: | Rajesh Barik (Department of Economics & Finance, BITS Pilani, K K Birla Goa Campus, Near NH-17B, Bypass Road, Chamber #D-308/5(NAB), Zuarinagar – 403 726, Goa, India); Parthajit Kayal ((corresponding author) Asst. Professor, Madras School of Economics, Chennai, Tamil Nadu, India, 600025) |
| Abstract: | Electricity consumption's positive impact on household well-being, education, and quality of life is well-documented. Yet, providing accessible and affordable electricity remains a global governance challenge. This study explores the potential of financial inclusion to extend electricity consumption. Investigating the relationship empirically, we analyze the effect of financial inclusion on per capita electricity consumption across countries. Using annual data from 2004 to 2021, we employ various econometric models (such as ordinary least squares, fixed effect, random effect, panel corrected standard errors, feasible general least square, Generalized Method of Moments, and Driscoll-Kraay approach) to examine this nexus in both upper-middle and lower-middle income countries. The study unveils a positive association between financial inclusion and per capita electricity consumption across the overall sample and income subgroups. Robustness checks further underscore the consistency of our findings across income categories. In light of our findings, policymakers could consider leveraging financial inclusion initiatives as strategic measures to bolster electricity consumption across both upper- and lower-middle-income countries. |
| Keywords: | Financial Inclusion, Electricity consumption, Cross-Country, Upper-Middle income, Lower-Middle income, Empirical Analysis |
| JEL: | O12 O13 O16 Q43 I32 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mad:wpaper:2025-277 |