Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009

JEIF Articles

May 2018

Institutions’ effect on households’ savings in Kenya: A ranked ordered multinomial/conditional probit model approach

Savings is a vital source of investment funds especially for developing economies. However, like in many developing countries, domestic savings in Kenya remain low. Hence, posing a significant development challenge. Household savings contribute a sizeable share of domestic and national savings in both industrial and developing countries. Households should not however, be considered as fully autonomous actors without the...

Author(s): Githinji Njenga, Susan M. Onuonga and Moses Muse Sichei  

April 2018

China’s trade intensity with South Asian countries

The study seek to explore the extent and nature of trade and its growth over the period 2005 to 2013 between China and its five South Asian neighbours (Bangladesh, Bhutan, Pakistan, Sri Lanka, and Nepal). We measure the extent of trade by the trade intensity index and then check whether whole of this is explained by complementarity in the conventional sense. The study reveals that China’s trade intensity increased...

Author(s): Ishfaq Malik and Ajaz Rather  

March 2018

Determinants and its extent of rural poverty in Ethiopia: Evidence from Doyogena District, Southern part of Ethiopia

This study identifies the extent and determinants of rural poverty in southern Ethiopia, Doyogena district. The study used 150 households, using a household consumption expenditure approach by employing the FGT (Foster-Greer and Thorbecke, 1984) poverty index to determine the extent of rural poverty. The study’s result shows that the total head count index, poverty gag, and poverty severity indexes are 0.438,...

Author(s): Girma Mekore and Temesgen Yaekob  

February 2018

The Ivorian Debt: Should we worry?

The objective of this paper is to shed light on Cote d’Ivoire’s indebtedness and see to what extent, the country’s current level of debt is worrisome. This research is parametric using a time series data spanning from 1970 to 2015 to investigate the debt and growth nexus. After investigating the time series characteristics of the data, it was found that the variables were I(1) and co-integrated....

Author(s): N&#;Zue Felix Fofana  

January 2018

Borrowers’ characteristics, credit terms and loan repayment performance among clients of microfinance institutions (MFIs): Evidence from rural Uganda

The purpose of this study is to investigate the contribution of borrowers’ characteristics and credit terms on loan repayment performance of MFIs in rural areas of Uganda. This study is cross sectional and correlational. Data were collected through a questionnaire survey of 51 MFIs in Uganda. Results indicate that there is a significant relationship between credit terms and loan repayment performance among clients...

Author(s): Bob Ssekiziyivu, Juma Bananuka, Isaac Nkote Nabeta and Zainabu Tumwebaze  

December 2017

Birr devaluation and its effect on trade balance of Ethiopia: An empirical analysis

This study examined the effect of Birr devaluation on trade balance of Ethiopia for the period 1970-2014 using the Vector Error Correction Model. The key results of the present study revealed that Birr devaluation deteriorates the trade balance of Ethiopia in the short run and improves it in the long run. Moreover, the result from the long and short run models showed that real effective exchange rate, money supply,...

Author(s): Fassil Eshetu

December 2017

Demand-driven determinants and self-reported barriers to financial inclusion in the West African Economic and Monetary Union (WAEMU)

“Access to finance for all” has gained attention in the international development agenda in recent years. In the West African Economic and Monetary Union (WAEMU), the issue of financial inclusion is set at the level of priority but in several dimensions of financial inclusion, countries of the union lag behind the Sub-Saharan Africa and Asian benchmark countries. In this paper, factors that are important for...

Author(s): Tomgouani Lanie

November 2017

A research on the gravity model of China’s oil trade in the strategic context of “One Belt One Road”

With the increasing energy demand along with China’s economic development, the external dependence on China’s oil supply keeps rising. In the foreseeable future, China’s oil trade will still center on importing. Under the background of China’s “One Belt One Road” strategy, the essay establishes a trade gravity model for oil importing trade in China. Through multiple linear regression...

Author(s): Guo Xiaopeng, Zhang Jinsuo, Xue Jian and Yan Tingxing

October 2017

Public debt and financial stability: The case of economic community and monetary union of central Africa (EMCCA)

This article analyzes the relationships between public debt and financial stability. Unlike traditional approaches based on linear panels (dynamic or static), we estimate a nonlinear regime change panel (PSTR) characterizing the relationships between public debt and financial stability for the member countries of the Economic Community, and Monetary Union of Central Africa (EMCCA). The results show that the public debt...

Author(s): Assoumou Ondo

September 2017

Determinants of efficiency in the Ghanaian banking industry

The twin forces of technological advancement and deregulation have led to financial integration and increased competition in the Ghanaian banking industry. This situation requires an extensive study into efficiency and its determinants in the Ghanaian banking sector, if Ghanaian banks are to survive and compete effectively in the global financial system. This study tries to determine the main determinants of efficiency...

Author(s): David Jnr Sarpong and Ernest Christian Winful

July 2017

Gender-wise determinant of informal sector employment in Jigjiga town: A cross sectional study

This study indicates that in Jigjiga, the informal sector clearly plays a buffer role. From sampled respondent, the researcher analyzed the participants in the informal sector and tries to compare their earnings based on the activities they transact and the amount of income they earn. The study revealed that the average monthly earning of both gender was far better than some formal sector activities. Thus, the legal...

Author(s): Wubeshet Gezahagn

July 2017

International financial centres, global finance and financial development in the Southern Africa Development Community (SADC)

The study evaluates the effects of global/international finance on financial development, as well as analyse the options for enhancing the flow of global finance, in the Southern Africa Development Community (SADC) region. The study is motivated by the seemingly disconnection between global finance and international financial centres and financial development in the SADC region. The study uses a cross-country dynamic...

Author(s): Alex Bara and Pierre Le Roux

June 2017

Bank efficiency and default risk: The case of Ghana

There seem to be inconclusive results regarding the interactions between bank efficiency, default risk and bank capital. This study tries to assess the dynamic interactions between efficiency estimates, default risk and bank capital in the Ghanaian banking industry, using bank specific panel data for 20 Ghanaian banks from 2007 to 2015. We employ panel vector autoregressive models (VAR) models which are estimated using...

Author(s): Sarpong David (Jnr.) and Winful Christian Ernest

June 2017

The impact of capital flight from beautiful places: The case of the small open economy of Trinidad and Tobago

This paper examines the relationship among capital flight, domestic investment and economic growth in the small resource based economy of Trinidad and Tobago. The study utilized capital flight estimates from previous work. A Vector Error Correction Model (VECM) combing short run and long run analysis is presented. The results confirm the a priori expectation that the financial haemorrhage of capital flight is a...

Author(s): Michelle Salandy and Lester Henry

May 2017

The effects of remittances outflows on economic growth in Saudi Arabia: Empirical evidence

Within the last decade, the Kingdom of Saudi Arabia (KSA) achieved a high economic rate of growth of about 5.5% per year. Consequently, the number of immigrants grew rapidly reaching 9 million, which resulted in an increase in worker remittances out of the Kingdom. Since then, the KSA has become one of the first countries of the world in terms of remittances outflows and coming third worldwide after the USA and Russia...

Author(s): O. Rahmouni and I. Debbiche,

April 2017

Budgeting for development: Lessons from 2013 capital budget implementation in Nigeria

Adopting the descriptive approach, this study examined the performance of 2013 capital budget in Nigeria in line with attainment of the transformation agenda in the country. The findings suggest that the level of capital budget implementation is insufficient to foster the desired development. This poor performance is attributable to inadequacy in the budget implementation plans, non-release or late release of budgeted...

Author(s): Richardson K. Edeme and Nelson C. Nkalu

March 2017

Exports and economic growth in Togo

The pursuit of high and sustained economic growth is one of the major concerns of States, especially those in the process of developing their economic development. Thus, in the pursuit of economic growth, several studies have often been conducted on a number of macroeconomic policies for the determination of sources of growth. The objective of this paper is to evaluate the impact of exports on the growth of the Togolese...

Author(s): Essosinam Franck Karabou

February 2017

Bank efficiency and stock returns

Increased competition and globalization have made it imperative for banks to achieve high efficiency in order to generate required returns. This paper investigates the relationship between bank efficiency estimates, derived from both Stochastic Frontier Approach (SFA) and Data Envelopment Analysis (DEA) and share prices of banks listed on the Ghana stock exchange. The results give an indication that changes in cost and...

Author(s): David Sarpong, Ernest Christian Winful and Jones Ntiamoah

January 2017

Causality between economic growth and changes of the real exchange rate in Côte d'Ivoire

This study aims to analyze the relationship between changes in the real effective exchange rate and economic growth in Côte d'Ivoire. The autoregressive distributed lag (ARDL) approach and the Toda-Yamamoto causality test were used. The data cover the period 1980 to 2012. The results conclude the existence of a long-term relationship between economic growth and variation in the real effective exchange rate and...

Author(s): Nahoussé DIABATE

December 2016

Can Cameroon become an emerging economy by the year 2035? Projections from univariate time series analysis

Cameroon is among the African countries aspiring to become an emerging economy by the year 2035. Therefore, projecting into the future by policy makers in order to know the right course of action is imperative. The objective of this study is to identify a good forecasting model that can predict Cameroon’s future economic growth rate and to ascertain whether policy makers could maintain a steady and sustainable...

Author(s): Louis Sevitenyi Nkwatoh

December 2016

Petroleum resources and Nigeria’s poverty profile

Nigeria as one of the oil producing and resource rich nations in sub-Sahara Africa, with her considerable contribution to the world total oil output still maintained high level of poverty among her teeming population. The present development in the oil industry has demanded for an empirical investigation into why despite the endowed petroleum resources, the Nigeria’s poverty level has not positively improved. The...

Author(s): Olayemi O. Simon-Oke

November 2016

Entrepreneurial distance: A novel evaluation tool of entrepreneurial intention

Entrepreneurship and new business creation drive economic growth and employment generation. In this study we have developed a new way to evaluate entrepreneurial intention by looking at the respondents’ opinion towards entrepreneurs and their own self-reported abilities. We have coined this methodology as the entrepreneurial distance. This study is based in an international sample of 264 respondents gathered...

Author(s): Alba Zurriaga Carda and Kazuro Kageyama

November 2016

Factors affecting U.S. current account deficit: An empirical evidence

The purpose of this study is to determine the effects of the major macroeconomic indicators on U.S. current account deficit. Using the quarterly data from January 1973 to April 2013, this study attempts to examine whether those factors are truly the cause of massive current account deficit in the United States. We have considered a range of variables such as inflation rate, interest rate, exchange rate, and the gross...

Author(s): Ghassem A. Homaifar and Abul Hasnat Muhammed Salimullah

October 2016

The pricing of illiquidity risk on emerging stock exchange markets: A portfolio panel data analysis

The main purpose of this paper is to examine the main role of liquidity in stock pricing on African emerging stock markets. The study applies portfolios panel data analysis to modify and adapt the existing estimation process. Using three different procedures, six portfolios have been constructed base on the 32 most active stocks on the so called BRVM; the measures of liquidity considered are the turnover and the...

Author(s): Hikouatcha Kenfack, Prince Dubois, Kamdem David, Bidias Menik Hans Patrick and Adeyeye Patrick Olufemi

August 2016

Semi-Markovian credit risk modeling for consumer loans: Evidence from Kenya

Based on simulations of implied values for credit worthiness over a period of 5 years for 1000 consumers, the study shows robustness of the Semi-Markovian models in forecasting Probabilities of Default and Loss Given Default for a portfolio of consumer loans. The study models credit risk as a reliability problem on the basis of which we generate credit risk indicators and quantify prospective capital holding based on...

Author(s): Wagacha Anthony and Ferdinand Othieno

August 2016

Macroeconomic variables and stock market performance of emerging countries

This article seeks to fill the gap of severe data limitations on the link between macroeconomic variables and stock market performance. A panel data of 41 emerging countries for the period 1996 to 2011 was used to estimate the results. The model used by Sangmi and Mubasher (2013) was adopted and modified to determine the effect of macroeconomic variables on stock market capitalization. The four techniques to investigate...

Author(s): Winful Christian Ernest, Sarpong David Jnr and Sarfo Adjei Kofi

July 2016

Poverty incidence in Nigeria: Does financial deepening matter?

Economic policies in every nation strive to attain basic macroeconomic goals, one of which is poverty reduction. The paper examines empirically whether or not financial deepening has played a significant role in poverty alleviation effort in Nigeria for the period 1990 to 2013. Utilizing both quantitative and descriptive analyses, the paper estimated three models in which poverty rates for the rural areas, urban areas...

Author(s): Dabwor, T. Dalis and Abimiku, A. Christopher

July 2016

The determinants of interest rate spread: Empirical evidence from the Central African economic and monetary community

In spite of the reforms undertook during the 1980s and 1990s in favour of financial deepening, the spread between the lending rate and the deposit rate is still high in the member countries of the Central African Economic and Monetary Community (CAEMC). Thus, the aim of this study is to investigate the determinants of banking spread in those countries. In that vein, the study employs two-step regression proposed by Ho...

Author(s): Achille Dargaud Fofack

July 2016

Empirical evidence on capital structure determinants in Nigeria

The purpose of this paper is to investigate empirical evidence on capital structure determinants in Nigeria. This research has been performed using a sample of 50 companies listed on the Nigeria Stock Exchange from 2001 to 2010. The relationship between the short-term and long-term debt and four explanatory variables were observed. The results of the cross-sectional OLS regression revealed that the static trade-off...

Author(s): Ahmed Adeshina Babatunde

July 2016

Bank lending behavior and economy financing in CEMAC countries: Should we grease the wheel?

For the proponents of the “greasing the wheel” position, in the context of market imperfections, corruption helps in alleviating distortions in the credit market, facilitates access to bank credit and promotes the financing of the economy. The aim of this paper was to interrogate the impact of corruption on bank lending behavior in CEMAC countries, not only ranked among the most corrupt economies in the...

Author(s): Eze Eze Donatien

June 2016

Growth and corruption in Arab countries: What type of relationship connects them?

This study aims to investigate the relationship between corruption and growth in the context of the Arab world. By controlling the different variables that affect growth, the study tries to focus on how corruption could have affected growth and in which way. The literature leans towards corruption having a negative impact on growth and development, however such view is not pervasive as there are some arguments...

Author(s): Ahmed, F. Ghoneim and Asmaa, M. Ezzat

May 2016

Impact of external debt on the productive efficiency in Togo economy

The objective of this study is to measure the productive efficiency of the external debt of the Togo economy. To do this, the technique of stochastic production frontier used by Drine and Nabi was used to assess the contribution of different factors, especially external debt to the productivity performance over the period from 1980 to 2012. The study results confirm the non-linear effect of external indebtedness on...

Author(s): Komlan Ametowoyo Adeve

March 2016

Towards sustainable financing models for micro-hydro plants in Sub-Saharan African countries: A theoretical review

Micro-hydro plants (MHPs) have been identified as a proven and promising opportunity to alleviate energy poverty in rural areas of Sub-Saharan Africa. However, the absence of “lowest-cost, long-term financing models” is found to be one of the major barriers to wide-spread adoption of this technology in the region. This paper presents a review of the factors underlying this absence and using the van Egmond...

Author(s): Andrew Munthopa Lipunga

February 2016

Effects of selected socio-economic factors and elections spending on aggregate savings (total deposits) in Ghana

Savings as a tool for domestic capital accumulation in developing countries has come under serious consideration in economic and financial development. However, savings in Ghana is characterized by very low tendencies, irregular trend and unenthusiastic attitudes of citizens towards it at the micro and macro levels. This study examined the effect of economic factors, election spending and health financing scheme on...

Author(s): Yazeed Abdul Mumin, Mohammed Abdulai and Hamza Kasim

January 2016

Benefit-cost analysis for sustainable water management in Beijing

Since 2000, large numbers of water reuse systems have been constructed to solve the water scarcity in Beijing. However, the operations of these systems are not well as expected. The paper will conduct an analysis of economic and social impacts of water reuse systems in Beijing. The aim is to find out whether the systems have positive economic and social impacts or not. If the systems bring negative economic and social...

Author(s): Xiao Liang

October 2015

Savings, investment and economic growth in Lesotho: An empirical analysis

This paper empirically examines the relationship among saving, investment and economic growth in Lesotho for the period 1970 to 2012, with a view to contributing to the body of literature on this topic and informing economic policy design in Lesotho. Using autoregressive distributed lag (ARDL) bounds testing approach to cointegration and vector error correction model (VECM) based Granger causality test; the paper finds...

Author(s): Lira P. Sekantsi and Kalebe M. Kalebe

September 2015

Modelling extreme volatility in the daily exchange rates of the Kenya shilling against the U.S. dollar

This study used extreme value theory to establish if the volatility witnessed in the exchange rate of the Kenya Shilling against the U.S. dollar in the period 1999 to 2013 could have been predicted and also determine if the long-term stability in the exchange rate was violated in the period. The peak over threshold model is applied to the tail of the volatility process of exchange rate returns of the Kenya Shilling...

Author(s): Isaya Maana, Anne Kamau and Kethi Kisinguh

September 2015

Effects of credit constraints on the productivity of small and medium-sized enterprises in Cameroon

This paper assesses the determinants and effects of credit constraints on the productivity of small and medium-sized enterprises (SMEs) in Cameroon. Use is made of the Cameroon enterprise survey data collected by the World Bank in 2009 and an endogenous switching regression model. Results show that interest rates, size of enterprise, size of loan, size of collateral, maturity of loans and legal status of enterprises are...

Author(s): Serge Mandiefe Piabuo, Francis Menjo Baye and Juliuschupezi Tieguhong

August 2015

A model for evaluating recreation benefits with reference dependent preference

In environmental valuation studies, it is commonly assumed that a utility arises from an absolute amount of environmental quality. This criterion, called absolute evaluation, is used in methods including the travel cost method and the contingent valuation method. Studies in experimental economics, however, have indicated that an individual’s criterion depends on reference dependent preference (RDP)—a...

Author(s): Tadahiro Okuyama and Yasuhisa Hayashiyama

August 2015

Banking sector reforms and output growth of manufacturing sector in Nigeria (1970-2011)

The study investigated empirically the effect of banking sector reforms on the output of manufacturing sector in the Nigerian economy between 1970 and 2011 with a view to examining the extent of the impact of banking sector reforms on the manufacturing sector. The study employed annual secondary time series data from 1970-2011, sourced from the Central Bank of Nigeria’s statistical bulletin and annual report and...

Author(s): Olanrewaju, Oluwagbenga Gideon, Aremo, Adeleke Gabriel and Aiyegbusi Oluwole Oladipo

July 2015

The export-diversifying effect of foreign direct investment in the CEMAC Region

This study aimed at investigating the export-diversifying effect of Foreign Direct Investment on the economies of the CEMAC sub region – notably, Cameroon, Central Africa Republic, Chad, Congo, Equatorial Guinea and Gabon. This was achieved empirically by using a Generalized Linear Model estimation technique implemented using the logit link function and the Gaussian distribution family to take care of the...

Author(s): Dobdinga Cletus Fonchamnyo

July 2015

The political economy of climate change

This article debates institutional proposals given to address climate change which is not attacking basic socioeconomic determinants but only impacts such as emissions of greenhouse gases (GHE). Getting to the bottom of the problem requires moving beyond mere energy transition to renewable energy, which is necessary. But they are insufficient to ensure the preservation of life on earth and the social order. These...

Author(s): Guillermo Torres Carral

June 2015

Portfolio balance approach: An empirical testing

Exchange rate plays vital role in an economy and thus has gained much attention in the literature. The purpose of the study is to test the portfolio balance approach which proposes that money supply and bonds of a country impact its exchange rate. For this purpose, Augmented Dickey Fuller and Phillips Perron test have been applied on the quarterly data from 2001 to 2010 to test the stationarity of the data. Auto...

Author(s): Aima Khan and Zaheer Abbas   

June 2015

Population growth and gender time distribution in a small-open growth model

This study proposes an endogenous population economic growth model with gender time distribution between work, children fostering and leisure. It deals with nonlinear dynamic interdependence between the birth rate, the mortality rate, the population, wealth accumulation, and time distribution. We model the production side and wealth accumulation on the basis of the Solow model. The population dynamics is influenced by...

Author(s): Wei-Bin Zhang

May 2015

Stochastic simulation analysis of sustainable public debt in Zimbabwe

This paper applies dynamic stochastic simulation methods to assess sustainable public debt management policies in Zimbabwe. The methodology applied involves estimating a fiscal reaction function and using it to simulate public debt path using a stochastic approach and historical information on drivers of public debt accumulation and their volatility. The results from the baseline scenario show that Zimbabwe’s...

Author(s): Nebson Mupunga and Pierre Le Roux

May 2015

Human resource development as a correlate of performance of the banking industry in Ogun State, Nigeria

The study examined human resource development as a correlate of performance of the banking industry in Ogun State. Primary and secondary data were used in the study. Primary data were collected from the sampled commercial banks’ staff in Abeokuta metropolis while secondary data were sourced from published 2012 and 2013 Financial Statements of commercial banks. Data were analysed using Ordinary Least Squares and...

Author(s): Sowunmi, Sakirat Ololade, Eleyowo, Israel Olusegun, Salako, Mudashiru Abiodun and Oketokun, Fatai Olalekan

May 2015

Optimizing the monthly crude oil price forecasting accuracy via bagging ensemble models

The study investigates the accuracy of bagging ensemble models (i.e., bagged artificial neural networks (BANN) and bagged regression trees (BRT)) in monthly crude oil price forecasting. Two ensemble models are obtained by coupling bagging and two simple machine learning models (i.e., artificial neural networks (ANN) and classification and regression trees (CART)) and results are compared with those of the single ANN and...

Author(s): Hacer Yumurtaci Aydoğmuş, Aykut Ekinci, Halil İ. Erdal and Hamit Erdal

April 2015

Economic growth and environmental degradation in Ethiopia: An environmental Kuznets curve analysis approach

This study aimed to study the relationship between economic growth and environmental degradation in Ethiopia by questioning the existence of environmental Kuznets Curve. The study uses time series data from 1969/70 to 2010/2011 in a VECM analysis approach. The finding indicates existence of EKC hypothesis in Ethiopia. Like any agrarian country economic growth in Ethiopia inevitably contribute for environmental...

Author(s): Endeg Tekalegn Wolde

April 2015

Real exchange rate assessment in Egypt: Equilibrium and misalignments

The underlying study focuses on assessing the real exchange rate in Egypt during the period 1999-2012. In particular, the paper estimates the Real Exchange Rate (RER) misalignments in Egypt during the period under investigation. This is implemented through carrying out two main steps: first, the observed real exchange rate is calculated. Then, the Equilibrium Real Exchange Rate (ERER) is estimated using three different...

Author(s): Rana Hosni and Dina Rofael

March 2015

Mean-Gini portfolio selection: Forecasting VaR using GARCH models in Moroccan financial market

This paper focuses on Mean-Gini (MG) method for optimum portfolio selection. The MG framework, introduced by Shalit and Yitzhaki, is an attractive alternative as it is consistent with stochastic dominance rules regardless of the probability distributions of asset returns. Therefore, a MG framework is similar to a corresponding Mean-Variance (MV) framework in that it also uses two summary statistics-the mean and a...

Author(s): Jamal Agouram and Ghizlane Lakhnati

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