Financial inclusion and food security nexus: Evidence from Southern African Development Community (SADC)
- Authors: Machili, Tharollo
- Date: 2020
- Subjects: Economic growth, development, planning , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49886 , vital:41813
- Description: Everywhere on the African continent, governments are starting to realize the crucial role of financial inclusion in mitigating poverty and contributing to sustainable and inclusive economic development and stability. Emerging evidence indicates that financial sector deepening is essential for facilitating economic development. The 2016 SADC financial inclusion strategy asserts that inclusive economic growth has a positive impact on the needy through minimizing income inequality and increasing employment Finmark Trust (2016). Recent developments in financial services for the low-income segment, specifically, reveals how financial inclusion can strengthen the dependence of a vulnerable and excluded population (Demirgüç-Kunt, Klapper, Singer, Ansar and Hess, 2017). As such, many countries within the continent now have national financial inclusion strategies and lead core initiatives to enhance financial markets. A number of researcher’s stress that financial inclusion, especially the use of digital financial services and mobile money services, can have developmental benefits Although studies fail to concur on the direction of the effect that financial inclusion has on economic development. It is worth noting that, even studies that do not find any evidence of the relationship between financial inclusion and economic development to support this hypothesis, also emphasize the prospect of attaining better outcomes through careful consideration of local needs
- Full Text:
- Date Issued: 2020
- Authors: Machili, Tharollo
- Date: 2020
- Subjects: Economic growth, development, planning , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49886 , vital:41813
- Description: Everywhere on the African continent, governments are starting to realize the crucial role of financial inclusion in mitigating poverty and contributing to sustainable and inclusive economic development and stability. Emerging evidence indicates that financial sector deepening is essential for facilitating economic development. The 2016 SADC financial inclusion strategy asserts that inclusive economic growth has a positive impact on the needy through minimizing income inequality and increasing employment Finmark Trust (2016). Recent developments in financial services for the low-income segment, specifically, reveals how financial inclusion can strengthen the dependence of a vulnerable and excluded population (Demirgüç-Kunt, Klapper, Singer, Ansar and Hess, 2017). As such, many countries within the continent now have national financial inclusion strategies and lead core initiatives to enhance financial markets. A number of researcher’s stress that financial inclusion, especially the use of digital financial services and mobile money services, can have developmental benefits Although studies fail to concur on the direction of the effect that financial inclusion has on economic development. It is worth noting that, even studies that do not find any evidence of the relationship between financial inclusion and economic development to support this hypothesis, also emphasize the prospect of attaining better outcomes through careful consideration of local needs
- Full Text:
- Date Issued: 2020
The disciplinarisation and professionalisation of development finance in South Africa
- Authors: Dobbin, Jeremy
- Date: 2017
- Subjects: Finance -- South Africa Economic development -- South Africa , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/15270 , vital:28198
- Description: It has not been previously argued whether development finance can or should be regarded as a distinguishable academic discipline in its own right. The main objective of this study was to create an in-depth understanding of the current perceptions and misconceptions of development finance within the South African financial sector, which have not been formally captured or analysed previously. The research is important in determining the magnitude of contemporary interest in, and the emphasis of, development finance as a means of developing society. Furthermore, public perception influences the funding of future development finance research, the emerging theoretical framework and disciplinarity, access to education and training in the subject area, the level of student participation and enrolment in development finance courses and qualifications, as well as the supply of skilled practitioners. To accomplish the research objectives, an extensive literature review was conducted so as to provide a theoretical framework for the empirical study. Subsequently, self-administrable questionnaires were distributed to a non-probabilistic convenience sample of 319 individuals who have decision-making experience within the South African financial sector. Thirty-one respondents completed the questionnaire and the results were examined by means of non-probabilistic frequency distribution and qualitative analysis, where appropriate. Pervasive disagreement was found to exist among the respondents regarding a number of key issues, including the definition and characteristics of development finance, in addition to its pedagogy, professionalisation, and disciplinarity. A substantial majority of respondents agreed that there is a shortage of development finance experts in South Africa and that local universities should begin to offer students an undergraduate degree majoring in development finance specifically. It is recommended that in order for future development finance research, pedagogy, and practice to be more meaningful, greater conceptual clarity and more consistent usage of terminology and subject boundaries should be employed by stakeholders.
- Full Text:
- Date Issued: 2017
- Authors: Dobbin, Jeremy
- Date: 2017
- Subjects: Finance -- South Africa Economic development -- South Africa , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/15270 , vital:28198
- Description: It has not been previously argued whether development finance can or should be regarded as a distinguishable academic discipline in its own right. The main objective of this study was to create an in-depth understanding of the current perceptions and misconceptions of development finance within the South African financial sector, which have not been formally captured or analysed previously. The research is important in determining the magnitude of contemporary interest in, and the emphasis of, development finance as a means of developing society. Furthermore, public perception influences the funding of future development finance research, the emerging theoretical framework and disciplinarity, access to education and training in the subject area, the level of student participation and enrolment in development finance courses and qualifications, as well as the supply of skilled practitioners. To accomplish the research objectives, an extensive literature review was conducted so as to provide a theoretical framework for the empirical study. Subsequently, self-administrable questionnaires were distributed to a non-probabilistic convenience sample of 319 individuals who have decision-making experience within the South African financial sector. Thirty-one respondents completed the questionnaire and the results were examined by means of non-probabilistic frequency distribution and qualitative analysis, where appropriate. Pervasive disagreement was found to exist among the respondents regarding a number of key issues, including the definition and characteristics of development finance, in addition to its pedagogy, professionalisation, and disciplinarity. A substantial majority of respondents agreed that there is a shortage of development finance experts in South Africa and that local universities should begin to offer students an undergraduate degree majoring in development finance specifically. It is recommended that in order for future development finance research, pedagogy, and practice to be more meaningful, greater conceptual clarity and more consistent usage of terminology and subject boundaries should be employed by stakeholders.
- Full Text:
- Date Issued: 2017
The effect of foreign direct investment on economic growth: evidence from South Africa
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
Is inflation targeting a viable option for a developing country?: the case of Malawi
- Hompashe, Dumisani MacDonald
- Authors: Hompashe, Dumisani MacDonald
- Date: 2009
- Subjects: Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:943 , http://hdl.handle.net/10962/d1002676 , Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Description: The distinctive features of inflation targeting include the publishing of the formal (official) target band or point target for the rate of inflation at one or more time horizons and the explicit confirmation that low and steady inflation is the long-run objective of monetary policy. There are four main preconditions of inflation targeting: 1) an independent central bank that is free from fiscal and political pressures; 2) a central bank that has both the ability to forecast inflation and the capability to model inflation data; 3) the presence of fully deregulated prices and an economy that is affected by changes of commodity prices, as well as exchange rates; and 4) the presence of sound banking system and well developed capital markets. In most developing countries, the use of seigniorage revenues as a source of financing government debts, the lack of commitment by monetary authorities to low inflation as a primary goal, the absence of the central bank’s functional independence, and of powerful models to make domestic inflation forecasts, prevent the satisfaction of these preconditions. This dissertation investigates the extent to which Malawi meets the preconditions for inflation targeting by comparing the situation in that country to other developing countries, which have already adopted the framework. Malawi is committed to the central bank’s functional independence as well as the pursuit of prudent fiscal policy measures for the attainment of low inflation. Despite the failure to meet all the preconditions, this study recommends that Malawi should adopt an inflation targeting framework due to the strength of commitment of the monetary authorities in satisfying these preconditions.
- Full Text:
- Date Issued: 2009
- Authors: Hompashe, Dumisani MacDonald
- Date: 2009
- Subjects: Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:943 , http://hdl.handle.net/10962/d1002676 , Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Description: The distinctive features of inflation targeting include the publishing of the formal (official) target band or point target for the rate of inflation at one or more time horizons and the explicit confirmation that low and steady inflation is the long-run objective of monetary policy. There are four main preconditions of inflation targeting: 1) an independent central bank that is free from fiscal and political pressures; 2) a central bank that has both the ability to forecast inflation and the capability to model inflation data; 3) the presence of fully deregulated prices and an economy that is affected by changes of commodity prices, as well as exchange rates; and 4) the presence of sound banking system and well developed capital markets. In most developing countries, the use of seigniorage revenues as a source of financing government debts, the lack of commitment by monetary authorities to low inflation as a primary goal, the absence of the central bank’s functional independence, and of powerful models to make domestic inflation forecasts, prevent the satisfaction of these preconditions. This dissertation investigates the extent to which Malawi meets the preconditions for inflation targeting by comparing the situation in that country to other developing countries, which have already adopted the framework. Malawi is committed to the central bank’s functional independence as well as the pursuit of prudent fiscal policy measures for the attainment of low inflation. Despite the failure to meet all the preconditions, this study recommends that Malawi should adopt an inflation targeting framework due to the strength of commitment of the monetary authorities in satisfying these preconditions.
- Full Text:
- Date Issued: 2009
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