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on Payment Systems and Financial Technology |
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Issue of 2021‒02‒15
43 papers chosen by |
| By: | Marco Gross; Christoph Siebenbrunner |
| Abstract: | To support the understanding that banks’ debt issuance means money creation, while centralized nonbank financial institutions’ and decentralized bond market intermediary lending does not, the paper aims to convey two related points: First, the notion of money creation as a result of banks’ loan creation is compatible with the notion of liquid funding needs in a multi-bank system, in which liquid fund (reserve) transfers across banks happen naturally. Second, interest rate-based monetary policy has a bearing on macroeconomic dynamics precisely due to that multi-bank structure. It would lose its impact in the hypothetical case that only one (“singular”) commercial bank would exist. We link our discussion to the emergence and design of central bank digital currencies (CBDC), with a special focus on how loans would be granted in a CBDC world. |
| Keywords: | Banking;Currency issuance;Bank credit;Commercial banks;Monetary base;WP,bank,lending,nonbank,nonbank lending,process |
| Date: | 2019–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/285&r=all |
| By: | Majid Bazarbash |
| Abstract: | Recent advances in digital technology and big data have allowed FinTech (financial technology) lending to emerge as a potentially promising solution to reduce the cost of credit and increase financial inclusion. However, machine learning (ML) methods that lie at the heart of FinTech credit have remained largely a black box for the nontechnical audience. This paper contributes to the literature by discussing potential strengths and weaknesses of ML-based credit assessment through (1) presenting core ideas and the most common techniques in ML for the nontechnical audience; and (2) discussing the fundamental challenges in credit risk analysis. FinTech credit has the potential to enhance financial inclusion and outperform traditional credit scoring by (1) leveraging nontraditional data sources to improve the assessment of the borrower’s track record; (2) appraising collateral value; (3) forecasting income prospects; and (4) predicting changes in general conditions. However, because of the central role of data in ML-based analysis, data relevance should be ensured, especially in situations when a deep structural change occurs, when borrowers could counterfeit certain indicators, and when agency problems arising from information asymmetry could not be resolved. To avoid digital financial exclusion and redlining, variables that trigger discrimination should not be used to assess credit rating. |
| Keywords: | Credit risk;Credit;Credit ratings;Loans;Machine learning;WP,ML model,bears risk,machine learning technique,ML analysis,ML evaluation |
| Date: | 2019–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/109&r=all |
| By: | Seung Bin Baik |
| Abstract: | This study more complex digital platforms in early stages in the two-sided market to produce powerful network effects. In this study, I use Transfer Entropy to look for super users who connect hominids in different networks to achieve higher network effects in the digital platform in the two-sided market, which has recently become more complex. And this study also aims to redefine the decision criteria of product managers by helping them define users with stronger network effects. With the development of technology, the structure of the industry is becoming more difficult to interpret and the complexity of business logic is increasing. This phenomenon is the biggest problem that makes it difficult for start-ups to challenge themselves. I hope this study will help product managers create new digital economic networks, enable them to make prioritized, data-driven decisions, and find users who can be the hub of the network even in small products. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.09886&r=all |
| By: | Hanna Halaburda; Guillaume Haeringer; Joshua Gans; Neil Gandal |
| Abstract: | Since its launch in 2009 much has been written about Bitcoin, cryptocurrencies and blockchains. While the discussions initially took place mostly on blogs and other popular media, we now are witnessing the emergence of a growing body of rigorous academic research on these topics. By the nature of the phenomenon analyzed, this research spans many academic disciplines including macroeconomics, law and economics and computer science. This survey focuses on the microeconomics of cryptocurrencies themselves. What drives their supply, demand, trading price and competition amongst them. This literature has been emerging over the past decade and the purpose of this paper is to summarize its main findings so as to establish a base upon which future research can be conducted. |
| Keywords: | Bitcoin, blockchain, cryptocurrencies |
| JEL: | A10 D40 L00 O30 Y20 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8841&r=all |
| By: | Ankit Kalda; Benjamin Loos; Alessandro Previtero; Andreas Hackethal |
| Abstract: | Using transaction-level data from two German banks, we study the effects of smartphones on investor behavior. Comparing trades by the same investor in the same month across different platforms, we find that smartphones increase purchasing of riskier and lottery-type assets and chasing past returns. After the adoption of smartphones, investors do not substitute trades across platforms and buy also riskier, lottery-type, and hot investments on other platforms. Using smartphones to trade specific assets or during specific hours contributes to explain our results. Digital nudges and the device screen size do not mechanically drive our results. Smartphone effects are not transitory. |
| JEL: | G11 G40 G50 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28363&r=all |
| By: | Shams, Amin (Ohio State U) |
| Abstract: | This paper documents a persistent structure in cryptocurrency returns and analyzes a broad set of characteristics that explain this structure. The results show that similarities in size, trading volume, age, consensus mechanism, and token industries drive the structure of cryptocurrency returns. But the highest variation is explained by a "connectivity" measure that proxies for similarity in cryptocurrencies' investor bases using their trading location. Currencies connected to other currencies that perform well generate sizably higher returns than the cross-section both contemporaneously and in the future. I examine three potential channels for these results. First, evidence from new exchange listings and a quasi-natural experiment shows that unobservable characteristics cannot explain the effect of connectivity. Second, decomposition of the order flows suggests that connectivity captures strong exchange-specific commonalities in crypto investors' demand that also spills over to other exchanges. Finally, analysis of social media data suggests that these demand shocks are a first order driver of cryptocurrency returns, largely because they can be perceived as a sign of user adoption. |
| JEL: | G10 G11 G12 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2020-11&r=all |
| By: | Rasmané Ouedraogo; Amadou N Sy |
| Abstract: | This paper studies the effect of digitalization on the perception of corruption and trust in tax officials in Africa. Using individual-level data from Afrobarometer surveys and several indices of digitalization, we find that an increase in digital adoption is associated with a reduction in the perception of corruption and an increase in trust in tax officials. Exploiting the exogeneous deployment of submarine cables at the local level, the paper provides evidence of a negative impact of the use of Internet on the perception of corruption. Yet, the paper shows that the dampening effect of digitalization on corruption is hindered in countries where the government has a pattern of intentionally shutting down the Internet, while countries that successfully promote information and communication technology (ICT) enjoy a more amplified effect. |
| Keywords: | Corruption;Digitalization;Public employment;Public financial management (PFM);Education;WP,tax official,online service,intentional disruption,DAI government,government action,simple average |
| Date: | 2020–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/068&r=all |
| By: | Rangi, Pradeep Kumar; Aithal, Sreeramana |
| Abstract: | The paper-based certification is prone to manipulation and vulnerable to fraud. Instances of fraudulent degrees, manipulation of academic records, or compromised academic programs adversely impact and damage an academic institution's credibility. It also affects the Indian universities’ mission and prospects of the students graduating from such a university. What makes reputational risk a unique risk is that it may arise both from the university or institution's failure or the action outside the university. It is, therefore, essential to take an enterprise risk management approach to mitigate reputational risk. Robust credential verification and validation protocols are the most important protections against fake certifications. The legacy certificate verification solutions are highly centralized, i.e., utterly dependent on the issuing authority for certificates. Despite the University Grants Commission (UGC) taking strict measures against individuals, Indian universities, colleges, and associations, we do come across several acts of torts. Some of the technology-savvy institutions have moved to digital certificates and digital signatures. However, this has an inherent weakness, i.e., they still need to rely on a trusted third party. Blockchain technology has three foundational components, data structures based on cryptography that make it secure and tamperproof, consensus protocols that allow it to function truthfully and without any central authority or a third party smart contracts, which provide efficiency and business value transactions. These key features of blockchain, if implemented appropriately, effectively has the potential to mitigate the inherent reputational risk arising from fraudulent academic certificate matters. Niti Ayog is currently developing a blockchain-based proof of concepts to solve traditional educational qualifications related to identity misrepresentation and document forgery. The immutability attribute of the blockchain ensures that tampering and manipulation of the record are not attainable. This paper focuses on the reputational risk Indian universities and institution may face when its certifications are not easily verifiable. Therefore, it becomes easy targets for bad actors to exploit vulnerabilities by issuing counterfeit certificates. Secondary published data, including various scholarly journals, reports, industry publications, and website sources, are utilized to develop this case study. The paper also explores how blockchain technology with specific reference to the proof of concept SuperCert proposed by Niti Ayog for Indian academic institutions may provide effective preventive control to overcome such reputational risk using the ABCD analysis framework as a research case study. |
| Keywords: | Reputational risk, Academic Certification, Blockchain, SuperCert, Enterprise Risk Management, Indian Universities |
| JEL: | I2 I21 I23 M15 O3 O32 |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105347&r=all |
| By: | Grégoire Rota-Graziosi (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Fayçal Sawadogo (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | We estimate the tax burden on the mobile telecommunication sector in twenty-five African countries. This tax burden encompasses not only standard and particular taxes under the control of the Ministry of Finance (MoF), but also fees raised by national telecommunication Regulatory Agency (RA). Given the lack of financial data at the country level, we build a representative mobile network operator, named TELCO, using the GSMA Intelligence database. We compute the Average Effective Tax Rate (AETR) for this firm considering general and special taxes and fees levied only on the telecommunication sector. We develop a web application (https://data.cerdi.uca.fr/ telecom/), which allows the reader to replicate our analysis or to modify TELCO and tax parameters. The AETR varies significantly across countries, ranging from 33 percent in Ethiopia to 118 percent in Niger. Special taxes and fees represent a large share of the AETR illustrating some taxation by regulation and a potential tax competition (a race to the top) between the MoF and the RA. We compare the AETR of TELCO to this of a representative gold mining plant and a standard firm with similar gross return. The tax burden of the telecommunication sector is higher than this of the mining sector in 15 countries out of the 19 countries for which we have data on the gold mining sector. |
| Keywords: | Taxation,Telecommunication sector,Project analysis,Developing countries |
| Date: | 2020–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03109370&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph Amankwah†Amoah (University of Kent, Kent, UK); Rexon T. Nting (London, UK); Godfred A. Afrifa (University of Kent, Kent, UK) |
| Abstract: | This study investigates how ICT affects gender economic inclusion via gender parity education channels. We examine the issue using data from 49 countries in sub-Saharan Africa for the period 2004-2018 divided into: (i) 42 countries for the period 2004-2014; and (ii) 49 countries for the period 2008-2018. Given the overwhelming evidence of negative net effects in the first sample, an extended analysis is used to establish thresholds of ICT penetration that nullify the established net negative effects. We found that in order to enhance female labor force participation, the following ICT thresholds are worthwhile for the secondary education channel: 165 mobile phone penetration per 100 people, 21.471 internet penetration per 100 people and 3.475 fixed broadband subscriptions per 100 people. For the same outcome of inducing a positive effect on female labor force participation, a 31.966 internet penetration per 100 people threshold, is required for the mechanism of tertiary school education. These computed thresholds have economic meaning and policy relevance because they are within the established ICT policy ranges. In the second sample, a mobile phone penetration threshold of 122.20 per 100 people is needed for the tertiary education channel to positively affect female labor force participation. |
| Keywords: | Africa; ICT; Gender; Inclusive development |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/100&r=all |
| By: | Maxime Thomas (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Pascal Le Masson (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Julien Legrand (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2020–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03094851&r=all |
| By: | Maxime Delabarre (Sciences Po - Sciences Po) |
| Abstract: | This essay argues that the common competition framework is not to be applied to the financial sector. If traditionally competition brings efficiency and diversity in a market, financial regulators must also ensure the stability of the financial market. Henceforth, some limits and entry barriers have to exist. This is particularly true for FinTech companies. If the potential of those new actors is not to be contested, the risk they can bring is also quite obvious. If regulators want the market to be disrupted and to see consumers benefiting from the power of innovation of technology-based companies, they need to adapt their regulatory framework. Only under this condition will the benefits outweigh the potential risks. |
| Keywords: | Financial regulations,financial stability,competition,financial market,innovation |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03107769&r=all |
| By: | Pierre-Jean Benghozi (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Hugues Chevalier (Institut de l'Iconomie, Bordeaux) |
| Abstract: | Purpose The HAL syndrome is a sign of the pathology of analysts and commenters when they are dealing with the stakes and risks of AI, then stressing the omnipotence of technologies and expected performances, the autonomy of machine, the problems of human control, the anthropomorphism in handling usages. The perception of new uses, the capacity to appropriate the digital dimension, the very conception of applications, terminals and infrastructures are highly structured by shared vision of technologies that spread within society. Design/methodology/approach Analyzing fictional content such as "2001, a Space Odyssey" and the forward-thinking vision of AI it offers contribute to characterize the deep ambiguity of AI. HAL, the computer of 2001, helps us to understand that AI is just an umbrella term that covers very different configurations and systems. The power to inspire coming from HAL holds to its being part of an identifiable genre, fiction, a privileged container for projecting phantasms about future unknown domains. Findings The HAL syndrome leads us to relativize the omnipotence granted to technology and willingly circulated by both digital companies and transhumanist thinkers that advocate the use of science and technology – including IT – to enhance the human condition. Originality/value The HAL syndrome, as it continues to influence our minds, becomes the basis of the questioning, concerns and enthusiasms triggered by AI. Therefore, it calls for original reflection over the need and modalities of the regulation of the current technological dynamics. |
| Keywords: | Artificial intelligence,Regulation |
| Date: | 2019–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03101149&r=all |
| By: | Yongqiang Meng (Centre d'Economie de la Sorbonne); Dehua Shen (College of Management and Economics - Tianjin University); Xiong Xiong (College of Management and Economics - Tianjin University); Jorgen Vitting Andersen (Centre d'Economie de la Sorbonne) |
| Abstract: | This paper investigates the relations between multiple measures of investor sentiment and the returns, volatility, trading volume, and liquidity. Using both data outside and inside market, we find that the Bullishness from socio-finance model are significant related to future realized volatility and trading volume, similar to Tweet, which is thought to capture information of well-informed investors in Bitcoin market |
| Keywords: | socio-finance; sentiments; complex systems |
| JEL: | G4 G40 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:20031&r=all |
| By: | Gade, Dipak S.; Aithal, Sreeramana |
| Abstract: | Smart Cities are well planned, designed, and established keeping in mind the growing need of citizens in search of better livelihood. Technology has played a big role in equipping Smart Cities to offer better facilities to its citizens in terms of better living comfort, better atmosphere, better surrounding, better medical facilities, and most importantly ease of doing business, office, and day to day activities. While doing so, IT Infrastructure and online transactions have influenced all the operational processes of Smart Cities and almost acting as its backbone. Obviously, any adverse impact on online transactions can create chaos in Smart City operations. To address this concern, a safe and reliable online transaction is a must. In this paper, we have discussed Blockchain Technology-based solutions for Smart Cities and their potential impact on Smart Cities Development. We specifically tried to address the concern of how Smart City online operational processes for various applications can be made reliable and safe by using Blockchain Technology and how this technology can benefit Smart Cities overall development. Based on the comprehensive research and detailed literature review, we proposed Blockchain Technology based secure framework for Smart Cities. We also identified various applications and process areas that can be highly benefited by using Blockchain Technology and can make these applications smarter and more reliable and fit for use for any Smart City. |
| Keywords: | Blockchain, Smart city, Smart contracts, Secure framework, Distributed ledger |
| JEL: | M1 M15 O2 O21 O22 O4 R0 R5 R58 |
| Date: | 2020–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105351&r=all |
| By: | Linh, Nguyen Thi |
| Abstract: | Information technology in general and digital technology businesses in particular are expected to make a major contribution to the economy. Despite high expectations, science and technology investment has not been seen objectively. |
| Date: | 2020–12–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:8w4ca&r=all |
| By: | Ken Miyajima |
| Abstract: | Digitalization is accelerating as countries fight against the COVID-19 pandemic. In this context, the impact of mobile phone ownership on welfare (represented by consumption) is estimated for South Africa using rich household survey data in a panel format, the National Income Dynamics Study (NIDS) with 5 waves spanning 2008–17. The literature argues mobile phone ownership facilitates greater and more affordable access to information and generate welfare gains. We attempt to disentangle the two-way relationship between consumption and mobile phone ownership, which is inherently difficult, and add to the literature by investigating distributional effects. Estimated results suggest that consumption of mobile phone owners tends to be 10–20 percent above that of non-owners. Benefits tend to accrue more on individuals with relatively low levels of consumption, potentially as a greater number of new users, likely with higher marginal positive effects on consumption, and a faster rate of user cost reduction help reap greater gains. |
| Keywords: | Consumption;Mobile banking;Estimation techniques;Education;Income;Digitalization,Household Survey,Instrumental Variable Approach,Mobile Phone,South Africa,WP,consumption decile,system GMM,level consumption,NIDS data |
| Date: | 2020–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/222&r=all |
| By: | Perroni, Carlo (University of Warwick); Scharf, Kimberley (University of Birmingham and CEPR); Talavera, Oleksandr (University of Birmingham); Vi, Linh (University of Birmingham) |
| Abstract: | We explore the link between online attention and charitable donations. Using a unique dataset on phone text donations that includes detailed information on the timing of cash gifts to charities, we link donations to time variation online searches for words that appear in those charities’ mission statements. The results suggest that an increase in the online salience to donors of the activities pursued by different charities affects the number and volume of donations made to those charities and to charities that pursue different goals. We uncover evidence of positive own salience effects and negative cross salience effects on donations. |
| Keywords: | Charitable Donations, Online Search, News Shocks JEL Classification: H41, D12, D64 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:536&r=all |
| By: | Quarm, Richmond Sam; Adoli, Hebron L.; Zadid, Ahmed Ishtiaq; Institute of Research, Asian |
| Abstract: | Every producer always tries to achieve the goals and objectives through the products they produce. The resulting product can be sold or purchased by the end consumer at a price level that provides long-term corporate profits. It is in this framework that each producer must think about marketing its products, long before the product is produced until the product is consumed by the end consumer. This study aims to find out the effect of Brand Image and Price on the Purchasing Power of Property which is mediated by Digital Technology. This study used 91 respondents who were tenants of the Premium Cluster Apartments who used digital technology applications. This study uses Brand Image and Price as independent variables, Digital Technology as a mediating variable, and Purchasing Power as the dependent variable. Data obtained using a questionnaire and processed and analyzed using path analysis techniques. The results show that Brand Image has a positive and significant effect on Digital Technology, Price has a positive and significant effect on Digital Technology, Digital Technology has a significant effect on Purchasing Power, Brand Image has a positive and significant effect on Purchasing Power, Price has a significant effect on Purchasing Power, Digital Technology has a significant positive effect on mediating between Brand Image on Purchasing Power, Digital Technology mediates between Price and Purchasing Power. |
| Date: | 2020–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:j28d4&r=all |
| By: | Doh-Shin Jeon (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Bruno Jullien (CNRS - Centre National de la Recherche Scientifique, TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mikhail Klimenko (Unknown) |
| Abstract: | The dominance of English language content on the Internet raises a question of how consumer bilingualism in a given country a§ects the amount of home language content and the countryís welfare. We address this question by studying two-sided market competition between a foreign and a domestic content distribution platform in a small open economy. On the one hand, bilingualism has the beneÖt of increasing cross-side network externalities by increasing consumer concentration on the foreign platform, which increases the amount of home language content. On the other hand, bilingualism exposes home language content to competition from foreign language content and softens platform competition, which reduces the amount of home language content. We Önd that bilingualism mostly increases consumer surplus but can reduce domestic producer surplus. The welfare e§ect of taxing the foreign platform is also analyzed. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03081660&r=all |
| By: | Geng, Tong (JD.com); Lin, Xiliang (JD.com); Nair, Harikesh S. (JD.com and Stanford U); Hao, Jun (JD.com); Xiang, Bin (JD.com); Fan, Shurui (JD.com) |
| Abstract: | Comparison Lift is an experimentation-as-a-service (EaaS) application for testing online advertising audiences and creatives at JD.com. Unlike many other EaaS tools that focus primarily on fixed sample A/B testing, Comparison Lift deploys a custom bandit-based experimentation algorithm. The advantages of the bandit-based approach are twofold. First, it aligns the randomization induced in the test with the advertiser's goals from testing. Second, by adapting experimental design to information acquired during the test, it reduces substantially the cost of experimentation to the advertiser. Since launch in May 2019, Comparison Lift has been utilized in over 1,500 experiments. We estimate that utilization of the product has helped increase click-through rates of participating advertising campaigns by 46% on average. We estimate that the adaptive design in the product has generated 27% more clicks on average during testing compared to a fixed sample A/B design. Both suggest significant value generation and cost savings to advertisers from the product. |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:3904&r=all |
| By: | Ronald Heijmans; Froukelien Wendt |
| Abstract: | Banks and financial market infrastructures (FMIs) that are not able to fulfill their payment obligations can be a source of financial instability. This paper develops a composite risk indicator to evaluate the criticality of participants in a large value payment system network, combining liquidity risk and interconnections in one approach, and applying this to the TARGET2 payment system. Findings suggest that the most critical participants in TARGET2 are other payment systems, because of the size of underlying payment flows. Some banks may be critical, but this is mainly due to their interconnectedness with other TARGET2 participants. Central counterparties and central securities depositories are less critical. These findings can be used in financial stability analysis, and feed into central bank policies on payment system access, oversight, and crisis management. |
| Keywords: | Payment systems;PFM information systems;Liquidity risk;Banking;Liquidity;WP,payment instruction,transaction data,customer payment,payment flow,settlement bank |
| Date: | 2020–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/081&r=all |
| By: | Julia Schmitt; Klaus M. Miller; Bernd Skiera |
| Abstract: | Policy makers worldwide draft privacy laws that require trading-off between safeguarding consumer privacy and preventing economic damage to companies that use consumer data. However, little empirical knowledge exists as to how privacy laws affect companies' performance. Accordingly, this paper empirically quantifies the effects of the enforcement of the EU's General Data Protection Regulation (GDPR) on online user behavior over time, analyzing data from 6,286 websites spanning 24 industries, during the 10 months before and 18 months after the GDPR's enforcement in 2018. A difference-in-differences analysis, with a synthetic control group approach, enables the short- and long-term effects of the GDPR on user behavior to be reliably isolated. The results show that, on average, the GDPR's effects on user quantity and usage intensity were negative; e.g., 3 months (18 months) post-GDPR, the numbers of unique visitors and total visits to a website decreased by 0.8% (6.6%) and 4.9% (10%), respectively. These effects could translate into average revenue losses of 7 million USD for e-commerce websites and almost 2.5 million USD for ad-based websites 18 months after GDPR. The GDPR's effects vary across websites, with some industries even benefiting from it; moreover, more-popular websites suffered less damage, suggesting that the GDPR increased market concentration. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.11366&r=all |
| By: | Tidiane Kinda |
| Abstract: | The use of e-commerce around the world has accelerated in recent years, with Asia, led by China, spearheading the rise. Using cross-country enterprise survey data, this paper shows that firms engaged in e-commerce have higher productivity and generate a larger share of their revenues from exports than other firms. This is particularly true in Asia, where firms have 30 percent higher productivity and generate about 50 percent more of their revenues from exports. The results presented in this paper are robust to the use of instrumental variables, which highlight possible larger effects of e-commerce on Asian productivity and exports when essential elements are in place for its effective use, such as reliable electricity, telecommunication, and transport infrastructure. Despite the rapid growth of e-commerce in recent years, gaps persist in digital infrastructure and legislation, preventing many Asian countries from fully reaping the potential benefits of e-commerce. |
| Keywords: | Total factor productivity;Exports;Productivity;Population and demographics;Human capital;WP,e-commerce firm,World Bank enterprises survey,firm performance,way firm,affiliate company |
| Date: | 2019–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/135&r=all |
| By: | Fang, Hamming; Ge, Chunmian; Hwang, Hanwei; Li, Hongbin |
| Abstract: | This paper studies how the COVID-19 pandemic has affected labor demand, using over 100 million posted jobs on one of the largest online platforms in China. Our data reveal that the number of newly posted jobs within the first 14 weeks after the Wuhan lockdown on January 23, 2020, was about 31% lower than that of comparable periods in 2018 and 2019. We show that, via the global supply chain, COVID-19 cases abroad and pandemic-control policies by foreign governments reduced new-job creation in China by 11.7%. We also find that firms most exposed to international trade outperformed other firms at the beginning of the pandemic but underperformed during the recovery as the virus spread throughout the world. |
| Keywords: | Covid-19; coronavirus; labor demand; global supply chains; trade; China; employment |
| JEL: | R14 J01 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108489&r=all |
| By: | Samuel Demeulemeester (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne] - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03103172&r=all |
| By: | Ibrahim A. Adekunle (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Tolulope O. Williams (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Olatunde J. Omokanmi (Crown-Hill University, Eiyenkorin, Nigeria); Serifat O. Onayemi (Olabisi Onabanjo University, Ogun State, Nigeria) |
| Abstract: | In this study, we examine the mediating roles of institutions in the remittances growth relationship for some reasons. We found that no country-specific study has towed this line leaving a vacuum in the literature of development and international finance. Most studies along this dimension have been done as a continental panel study with significant attendant deficiencies. Heterogeneous nature of institutional arrangements in African nations makes findings on the moderation roles of institutions in the remittance-growth relationship regional specific. We rely on the autoregressive distributed lag (ARDL) estimation procedure to establish a clear line of thought on the interactions of the variables of interest. Short-run results revealed that remittances inflow positively influence growth, but when institutional factors interact with the remittances variables, only the regulatory quality measures from the product of interactions matters for growth. Nonetheless, long run results revealed that remittances inflow was negatively related with growth, but when interacted with institutional measures and regressed on growth outcomes, we found remittances to positively and statistically influence growth outcomes for all the institutional measures adopted. Therefore, recipient nations should improve on the design and enforcement of laws particularly about their regulatory quality and as well as quality assurance such that they could be positioned to attract increased remittances inflow as well as other sources of external financing needed to augment domestic productivity and growth. |
| Keywords: | Economic Growth, Remittances, Institutions, ARDL, Nigeria |
| JEL: | E01 E44 F24 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/063&r=all |
| By: | Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Joseph Nnanna (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The purpose of this paper is to critically examine the multinational oil companies (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on development of rural women’s traditional enterprises in the Niger Delta region. A total of 2400 women were sampled across the region. Results from the use of a combined propensity score matching and logit model indicate that the GMoU model of the CSR has recorded significant success in supporting farming and fishing transformation generally; but has also undermined those initiatives that focused on empowering rural women in traditional enterprises, due to the cultural and traditional context in the region. This causes both direct harm to women and their children, and wider costs to African economies. It implies that if the GMoU interventions are not targeted to raise women’s economic status and to deter aggression, invariably they may contribute towards reducing the participation of women in economic, political and social development and, by extension, dampen efforts in deterring poverty and achieving the sustainable development goals (SDGs) in sub-Saharan Africa. |
| Keywords: | Traditional enterprises, corporate social responsibility, rural women transformation, multinational oil companies, propensity score matching, sub-Saharan Africa |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/096&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The study examines nexuses between carbon dioxide (CO2) emissions, renewable energy consumption and inequality in 39 Sub-Saharan African countries for the period 2004-2014. The empirical evidence is based on Quantile regressions. First, in the 25th quantile of the inequality distributions, as long as CO2 emissions metric tons per capita are kept below 4.700 (4.100), the Gini coefficient (Atkinson index) will not increase. These are avoidable CO2 emissions thresholds. Second, renewable energy consumption should be complemented with other policies to: (i) reduce the Gini coefficient when renewable energy consumption is at 50.00% of total final energy consumption and (ii) mitigate the Atkinson index when renewable energy consumption is at 62.500 % of total final energy consumption in the bottom quantiles of the Atkinson index distribution and at 50.00% of total final energy consumption in the 75th quantile of the Atkinson index distribution. These are renewable energy consumption thresholds for complementary policies. The novelty of this study in the light of extant literature is fundamentally premised on providing policy makers with avoidable thresholds of CO2 emissions as well as corresponding thresholds of renewable energy consumption for complementary policies, in the nexus between the green economy and inequality. |
| Keywords: | Renewable energy; Inequality; Finance; Sub-Saharan Africa; Sustainable development |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/097&r=all |
| By: | Asongu Acha-Anyi (Pretoria, South Africa); Paul N. Acha-Anyi (Walter Sisulu University, South Africa); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa Tchamyou (Yaoundé, Cameroon) |
| Abstract: | Health promotion is an educational tool that can be used to educate and create awareness of health issues through various media forms. The purpose of this study was to explore the use of social media (TB Proof South Africa‘s Facebook page) in creating tuberculosis (TB) awareness. A qualitative case study approach was used to collect data from TB Proof South Africa‘s Facebook page. An in-depth visual analysis of TB Proof South Africa’s Facebook page was carried out over a five-month period (from 1 February to 30 June 2017). The analysis of TB Proof South Africa‘s Facebook page was conducted in order to determine the use of social media for health promotion. Such a comprehensive analysis was aimed at determining if the visuals on this page create awareness on TB as an illness. Common themes were identified including, TB medication, TB patients and healthcare workers raising awareness on TB. The findings have potential implications for health promotion efforts using social media. |
| Keywords: | Health promotion, social media, facebook, tuberculosis (TB), health communication, TB Proof South Africa |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/065&r=all |
| By: | Baah A. Kusi (University of Ghana Business School, Ghana); Elikplimi K. Agbloyor (University of Ghana Business School, Ghana); Agyapomaa Gyeke-Dako (University of Ghana Business School, Ghana); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The study investigates how financial sector transparency moderates the influence of financial crises on bank market power across seventy-five economies between 2004 and 2014. Employing two-step dynamic system generalized method of moments the study shows that while public sector-led financial sector transparency reduces bank market power, private sector-led financial sector transparency promotes bank market power given that private sector-led transparency gives financial cost advantage to financially sound banks to solidify the market power and dominance. Similarly, while financial crises reduce the market power of banks implying that during financial crises banks lose their market power, financial sector transparency promotes the negative effect of financial crises on bank market power. This implies that during financial crises, financial sector transparency whether enforced through private or public sector, boosts the weakening effect of financial crises on bank market power. These findings imply that regulators can rely on financial transparency to tame bank market power to enhance banking competitiveness. The findings and results are consistent even when country, time and continental effects are controlled for. |
| Keywords: | Market Power; Bank; Financial Sector Transparency; Private Sector; Public Sector |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/087&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Samba Diop (Alioune Diop University, Bambey, Senegal); Amsalu K. Addis (Fuzhou University, Fuzhou, China) |
| Abstract: | The study provides thresholds of income inequality that if exceeded will nullify the positive effect of governance dynamics on gender-inclusive education in 42 countries in sub-Saharan Africa for the period 2004-2014. The Generalised Method of Moments is used as an estimation strategy. The following findings are established. First, the unconditional effects of governance dynamics on inclusive education are consistently positive whereas the corresponding conditional effects from the interaction between inequality and governance dynamics are consistently negative. Second, the levels of inequality that completely crowd-out the positive incidence of governance on inclusive “primary and secondary education†are: 0.587 for the rule of law and 0.565 for corruption-control. Third, the levels of inequality that completely dampen the positive incidence of governance on inclusive “secondary education†are: 0.601 for “voice & accountability†and 0.700 for regulation quality. Fourth, for tertiary education, inequality thresholds are respectively 0.568 for political stability and 0.562 for corruption-control. The main policy implication is that for governance dynamics to promote inclusive education in the sampled countries, income inequality levels should be kept within the established thresholds. Other implications are discussed in the light of Sustainable Development Goals. |
| Keywords: | Africa; Inequality; Gender; Inclusive development |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/086&r=all |
| By: | Fisayo Fagbemi (Obafemi Awolowo University, Ile – Ife, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The study gives an overview of the socio-economic consequences and implications of the COVID- 19 outbreak in Africa. While it is of common knowledge that the damage caused by the pandemic to the global economy is real, the existing socio-economic crises in Africa could further degenerate. What remains salient is that the huge economic costs would be borne by regions bereft of strong institutional regulatory setup and proactive approach to effectively ameliorate the impact of the outbreak, in both short-run and long-run, to bounce back in relation to the magnitude of the shocks suffered. It is indeed affirmed that in most sub-Saharan African (SSA) countries, such resilient measures seem to be absent or non-existent. Given the degree of behavioral responses and attendant vulnerabilities generated, African socio-economic problems may be potentially exacerbated with the majority of the population facing severe hardships in the continent. |
| Keywords: | Socioeconomic crisis, economic risk, COVID-19, Africa |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/102&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | We investigate persistence and determinants of deaths from conflicts in a sample of 163 countries for the period 2010 to 2015. The empirical evidence is based on Generalised Method of Moments. First, the findings are contingent on income levels, religious-domination, landlockedness, regional proximity and legal origins. The persistence of deaths in internal conflict is more apparent in coastal, French civil-law and Islam-oriented countries, compared to landlocked, English common law, Christian-oriented countries, respectively. Second, the following factors are generally responsible for driving deaths from internal conflicts: homicides, conflict intensity and conflicts fought. Furthermore, incarcerations have negative effects on internal conflicts. Justifications for the established tendencies and policy implications are discussed. |
| Keywords: | War; Conflicts; Global evidence; Persistence |
| JEL: | H56 L64 K42 P50 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/066&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria); Vanessa S. Tchamyou (Yaoundé, Cameroon) |
| Abstract: | The study extends the debate on finance versus institutions and measurement of property rights institutions. We assess the relationships between various components of property rights institutions and private investment, notably: political, economic and institutional governances. Comparative concurrent relationships of financial dynamics of depth, efficiency, activity and size are also investigated. The findings provide support for the quality of institutions as a better positive correlate of private investment than financial intermediary development. The interaction of finance and governance is not significant in potentially promoting private investment, perhaps due to substantially documented surplus liquidity issues in African financial institutions. The empirical evidence is based on 53 African countries for the period 1996-2010. Policy measures are discussed for reducing financial deposits, increasing financial activity and hence, improving financial efficiency. |
| Keywords: | Finance; Institutions; Investment: Property Rights; Africa |
| JEL: | G20 G24 E02 P14 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/080&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Rexon T. Nting (London, UK) |
| Abstract: | The study has investigated the comparative importance of financial access in promoting gender inclusion in African countries. Gender inclusion is proxied by the female labour participation rate while financial channels include: financial system deposits and private domestic credit. The empirical evidence is based on non-contemporary Fixed Effects regressions. In order to provide more implications on comparative relevance, the dataset is categorised into income levels (middle income versus (vs.) low income); legal origins (French civil law vs. English common law); religious domination (Islam vs. Christianity); openness to sea (coastal vs. landlocked); resource-wealth (oil-poor vs. oil-rich) and political stability (stable vs. unstable). Six main hypotheses are tested, notably, that middle income, English common law, Christianity, coastal, oil-rich and stable countries enjoy better levels of “financial access†-induced gender inclusion compared to respectively, low income, French civil law, Islam, landlocked, oil-poor and unstable countries. All six tested hypothesis are validated. This is the first study on the comparative importance of financial access in gender economic participation. |
| Keywords: | Inequality; Gender Inclusion; Financial development; Africa |
| JEL: | I30 L96 O16 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/089&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Samba Diop (Alioune Diop University, Bambey, Senegal); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria) |
| Abstract: | The purpose of this study is to understand how countries have leveraged on their economic resilience to fight the Covid-19 pandemic. The focus is on a global sample of 150 countries divided into four main regions, namely: Africa, Asia-Pacific and the Middle East, America and Europe. The study develops a health vulnerability index (HVI) and leverages on an existing economic resilience index (ERI) to provide four main scenarios from which to understand the problem statement, namely: ‘low HVI-low ERI’, ‘high HVI-low ERI’, ‘high HVI-high ERI’ and ‘low HVI-high ERI’ quadrants. It is assumed that countries that have robustly fought the pandemic are those in the ‘low HVI-high ERI’ quadrant and to a less extent, countries in the ‘low HVI-low ERI’ quadrant. Most European countries, one African country (i.e. Rwanda), four Asian countries (Japan, China, South Korea and Thailand) and six American countries (USA, Canada, Uruguay, Panama, Argentina and Costa Rica) are apparent in the ideal quadrant. |
| Keywords: | Novel coronavirus, health vulnerability, economic resilience |
| JEL: | E10 E12 E20 E23 I10 I18 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/074&r=all |
| By: | Ibrahim A. Adekunle (EXCAS, Liège, Belgium); Sheriffdeen A. Tella (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Kolawole Subair (Yobe State University, Damaturu, Nigeria); Soliu B. Adegboyega (Olabisi Onabanjo University, Ago-Iwoye, Nigeria) |
| Abstract: | Despite the magnitude of remittances as an alternative source of investment financing in Africa, the financial sector in Africa has significantly remained underdeveloped and unstable. Finding a solution to Africa's financial deregulation problems has proved tenacious partly because of inadequate literature that explain the nature of Africa capital and financial markets which has shown to be unorganised, spatially fragmented, highly segmented and invariably externally dependent. We examine the structural linkages between remittances and financial sector development in Africa. Panel data on indices of remittances was regressed on indices of financial sector development in fifty-three (53) African countries from 1986 through 2017 using the Pooled Mean Group (PMG) estimation procedure. We accounted for cross-sectional dependence inherent in ordinary panel estimation and found a basis for the strict orthogonal relationship among the variables. Findings revealed a positive long-run relationship between remittances and financial development with a significant (positive) short-run relationship. It is suggested that, while attracting migrants' transfers which can have significant short-run poverty-alleviating advantages, in the long run, it might be more beneficial for African governments to foster financial sector development using alternative financial development strategies. |
| Keywords: | Remittance, Financial Development, Pooled Mean Group, Africa |
| JEL: | F37 G21 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/081&r=all |
| By: | Samba Diop (Alioune Diop University, Bambey, Senegal); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This exploratory study aims to assess Africa’s lagging position in global heath in relation to some health care infrastructure before critically examining the situation of Africa in the light of pressing Covid-19 healthcare infrastructural needs in terms of number of hospital beds, intensive care units (ICU) beds and ventilators per 100 000 people. A comparative analysis is provided to showcase which regions are leading in the health facilities in the world in general and Africa in particular as well as countries that are lagging in the attendant healthcare facilities. Analytical insights are provided to illustrate that the Covid-19 pandemic has revealed how Africa cannot reach most Sustainable Development Goals (SDGs), especially SDG-3 on health and wellbeing. Moreover, corresponding inferences suggest that the continent is unprepared for future pandemics in terms of health facilities. |
| Keywords: | Novel coronavirus, Socio-economic effects; Africa |
| JEL: | E10 E12 E20 E23 I10 I18 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/073&r=all |
| By: | Chimere O. Iheonu (Abuja, Nigeria); Ozoemena S. Nwodo (Coal City University, Enugu, Nigeria); Uchechi S. Anaduaka (University of Nigeria, Nsukka, Nigeria); Ugochinyere Ekpo (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | This study examined the impact of income inequality on female labour force participation in West Africa for the period 2004 to 2016. The study employed the Gini coefficient, the Atkinson index and the Palma ratio as measures of income inequality. For robustness, the study also utilises female employment and female unemployment as measures of female labour force participation. The study employed the instrumental variable fixed effects model with Driscoll and Kraay standard errors to account for simultaneity/reverse causality, serial correlation, groupwise heteroskedasticity and cross-sectional dependence. The empirical results reveal that the three measures of income inequality significantly reduce the participation of women in the labour force in West Africa. The study also revealed that domestic credit, remittances and female education are positively associated with female labour force participation in the sub region. Further findings reveal that economic development reduces the participation of women in the labour force in West Africa with the U-shaped feminization theory not valid for the West African region. The study however revealed an inverted U-shaped relationship between inequality and female unemployment. Policy recommendations based on these findings are discussed. |
| Keywords: | Inequality, Female Labour, Instrumental Variable; Fixed Effects; West Africa |
| JEL: | C23 D31 J21 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/076&r=all |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Food prices in Nigeria have become significantly higher and more volatile since 2012. The purpose of this research was to find out what affects farmers’ participation in the growth enhancement support scheme (GESS) in the country. We determined the effect of the GESS on the ease of access to market information and agricultural inputs that influence price volatility at farm gate level. A total of 2100 rural farmers were sampled across Nigeria’s six geopolitical zones. Result from the use of recursive bivariate probit model showed that farmers depended on the GESS for the resolution of food price volatility by providing food market information and agricultural inputs that bring down the incidence and amount of anxiety-impelled price rise in Nigeria. The results advocated for the need to improve the GESS in line with the agricultural transformation agenda (ATA) by cutting down the deterrents mostly linked with the use of mobile phones, and the distance of registration and assemblage centers. In extension and contribution, the findings suggest that smallholder farmers can be part of the volatility solution when they are provided with rural roads and transportation to get their product to the market, and technology to receive and share the latest market information on prices. |
| Keywords: | Agricultural transformation agenda, recursive bivariate probit model, food price volatility, growth enhancement support scheme, rural farmers, Nigeria |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/069&r=all |
| By: | Oluwabunmi Adejumo (Obafemi Awolowo University, Ile-Ife, Nigeria); Uchenna Efobi (Covenant University, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Financing sustainable development in Africa requires financing options that is best for development in the region without further escalating other societal problems. This chapter takes stock of financing options previously advocated for financing development in the African region such as development assistance and foreign investment. By considering its implication on development outcomes like poverty, inequality, and aggregate human development, some drawbacks still exist. Therefore, the chapter identifies, reconfigures and reinvents other financial flows such as mutual support networks, agricultural cooperatives, crowd funding, fiscal responsibility, other forms of informal banking, and remittances, among others to African countries for efficient provision of structures that can aid in the sustenance of development. We conclude that these alternative means of financing development could be a viable policy option to bridge income and development gaps; thereby mainstreaming the process for financial inclusion and sustainability. |
| Keywords: | Finance; Sustainable Development |
| JEL: | G20 I00 O10 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/071&r=all |
| By: | Godfrey I. Ihedimma (Spiritan University, Nneochi, Abia State, Nigeria); Godstime I. Opara (Imo State University, Owerri, Imo State, Nigeria) |
| Abstract: | Nigeria is unarguably one of the countries with its citizens widely spread across the globe and the income earned forms a huge chunk of remittance back to Nigeria. The study focuses on what implications remittances may have for unemployment in Nigeria. Remittance is treated as being endogenously determined by the number of migrants, the nominal exchange rate (with the Naira as local currency), the inflation rate and the migrants’ income. Data from 1981 to 2019 is calibrated for structural break points and stationarity under conditions of regimes changes. While the data was found to have been affected by regime changes and stationary in levels, an Instrumental Variable Regression model was estimated and it was found that remittance positively and significantly influence unemployment. However, when remittance is interacted with the dependants in Nigeria, unemployment is observed to fall. The study strongly recommends that fiscal planning should take an account of the inflow of remittances when curbing unemployment. The study further recommends that there is the need to deliberately encourage a rise in the demand for the Naira as this would protect the value of locally produced goods from being eroded by remittances. |
| Keywords: | Remittance, Dependant, Endogenous, Financial Openness, Unemployment, Interaction, IV Estimation |
| JEL: | F24 J61 O15 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/103&r=all |