Digital finance and poverty in selected Sub-Saharan Countries
- Dube, Ziphozethu https://orcid.org/0000-0003-4532-5346
- Authors: Dube, Ziphozethu https://orcid.org/0000-0003-4532-5346
- Date: 2022-10
- Subjects: Electronic funds transfers , Transmission mechanism (Monetary policy)
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23347 , vital:57616
- Description: Since the 21st century, digital finance has emerged as a critical enabler and an excellent tool for meeting the UN 2030 Sustainable Development Goals (SDGs) through increasing financial inclusion and poverty reduction. The objective of achieving universal financial access by 2030 has led to recognising that financial inclusion has a significant role in economic growth and poverty eradication. The literature demonstrates that access to finance can affect poverty through access to credit, enabling savings, thereby facilitating intertemporal consumption smoothing. Digital finance is key to unlocking financial inclusion, particularly in developing countries. Building capacity in digital payments is one of the best ways to ensure a faster, better, and more cost-effective way to access financial services. The gender gap in developing countries states that (59% of men were reported to have a bank account in 2014, while 50% of women only had a bank account). Some groups, including women and the rural poor, are financially excluded compared to others. This study applied panel data regression analysis and structural equation modelling to investigate the nature of digital finance, its relationship with poverty and the transmission mechanism from digital finance to poverty in selected Sub-Saharan Countries. The results indicate that remittance is one of the most significant determinants of the use of digital finance in the Sub-Saharan region compared to other determinants of use for digital finance. Regarding the transmission mechanism between digital finance and poverty, the path analysis results suggest that the channel for remittance in the transmission mechanism has a more substantial impact on reducing poverty than savings in the Sub-Saharan region. The study recommends that remittance is essential, but savings are not critical in this digital age. This study contributed to literature by identifying the transmission mechanism between digital finance and poverty. This is beneficial to researchers and policymakers . It provides policy practitioners with a reference point on a model to build upon towards providing solutions to the problem, Sub-Saharan Countries encounter on delivering sustainable and broad-based economic growth. The study concludes by proposing that digital finance, particularly mobile money presents an excellent opportunity to increase access to finance and reduce poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-10
- Authors: Dube, Ziphozethu https://orcid.org/0000-0003-4532-5346
- Date: 2022-10
- Subjects: Electronic funds transfers , Transmission mechanism (Monetary policy)
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23347 , vital:57616
- Description: Since the 21st century, digital finance has emerged as a critical enabler and an excellent tool for meeting the UN 2030 Sustainable Development Goals (SDGs) through increasing financial inclusion and poverty reduction. The objective of achieving universal financial access by 2030 has led to recognising that financial inclusion has a significant role in economic growth and poverty eradication. The literature demonstrates that access to finance can affect poverty through access to credit, enabling savings, thereby facilitating intertemporal consumption smoothing. Digital finance is key to unlocking financial inclusion, particularly in developing countries. Building capacity in digital payments is one of the best ways to ensure a faster, better, and more cost-effective way to access financial services. The gender gap in developing countries states that (59% of men were reported to have a bank account in 2014, while 50% of women only had a bank account). Some groups, including women and the rural poor, are financially excluded compared to others. This study applied panel data regression analysis and structural equation modelling to investigate the nature of digital finance, its relationship with poverty and the transmission mechanism from digital finance to poverty in selected Sub-Saharan Countries. The results indicate that remittance is one of the most significant determinants of the use of digital finance in the Sub-Saharan region compared to other determinants of use for digital finance. Regarding the transmission mechanism between digital finance and poverty, the path analysis results suggest that the channel for remittance in the transmission mechanism has a more substantial impact on reducing poverty than savings in the Sub-Saharan region. The study recommends that remittance is essential, but savings are not critical in this digital age. This study contributed to literature by identifying the transmission mechanism between digital finance and poverty. This is beneficial to researchers and policymakers . It provides policy practitioners with a reference point on a model to build upon towards providing solutions to the problem, Sub-Saharan Countries encounter on delivering sustainable and broad-based economic growth. The study concludes by proposing that digital finance, particularly mobile money presents an excellent opportunity to increase access to finance and reduce poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-10
The impact of South African monetary policy on output and price stability in Namibia
- William, Anna Martha Tandakos
- Authors: William, Anna Martha Tandakos
- Date: 2020
- Subjects: Common Monetary Area (Organization) , Monetary unions -- Africa, Southern , Monetary policy -- South Africa , Monetary policy -- Namibia , Repurchase agreements -- South Africa , Repurchase agreements -- Namibia , Inflation (Finance) -- South Africa , Inflation (Finance) -- Namibia , Namibia -- Economic conditions , Transmission mechanism (Monetary policy)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/167709 , vital:41505
- Description: Namibia is a member country of the Common Monetary Area (CMA) with Lesotho, Swaziland and South Africa. South Africa is the anchor country to which the smaller member states have surrendered monetary policy authority. This thesis therefore examines the empirical relationship between the South Africa repo rate (SArepo) on the one hand and Namibia’s repo rate (Namrepo), Prime Lending Rate (PLR), Private Sector Credit Extension (PSCE), Consumer Price Index (CPI) and Gross Domestic Product (GDP) on the other hand. The credit channel of the monetary policy transmission mechanism informs the theoretical foundation of the thesis. Vector Autoregression modelling, variance decomposition and impulse response functions were used to explore the nature and strength of the relationship between the SArepo and said variables in Namibia. This thesis used quarterly data for the period 2003 to 2017. The variation in the Namrepo was predominantly explained by the SArepo, which confirmed that the Namrepo strongly followed the SArepo. The impulse response function results found that the impact of a contractionary monetary policy shock (an increase in the SArepo) lasted for up to six quarters before the effect started to fade. The Namrepo exhibited a positive response to an increase in the SArepo, although the magnitude of the response started to fade after the third quarter. The PLR, as a representative of market rates in Namibia, also exhibited a positive response to an increase in the SArepo. The results were similar for the Namrepo and the PLR because changes to the NamRepo are passed through immediately to the market interest rates. On the real variables, the study found that a contractionary monetary policy shock initiated in South Africa resulted in an increase in inflation in Namibia of less than 0.4 percent, whereas output declined by less than 1.0 percent. Interestingly, a Namibia (domestic) contractionary monetary policy shock resulted in a decline in prices of less than 0.4 percent. GDP, on the other hand, exhibited a positive response to a contractionary monetary shock, with an increase of less than 2.0 percent in the first four quarters of the period observed. The results reflected that a contractionary monetary policy shock from South Africa was more effective with regard to its impact on GDP; however, a domestic monetary policy shock was more effective at impacting on domestic inflation compared to the impact from South Africa.
- Full Text:
- Date Issued: 2020
- Authors: William, Anna Martha Tandakos
- Date: 2020
- Subjects: Common Monetary Area (Organization) , Monetary unions -- Africa, Southern , Monetary policy -- South Africa , Monetary policy -- Namibia , Repurchase agreements -- South Africa , Repurchase agreements -- Namibia , Inflation (Finance) -- South Africa , Inflation (Finance) -- Namibia , Namibia -- Economic conditions , Transmission mechanism (Monetary policy)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/167709 , vital:41505
- Description: Namibia is a member country of the Common Monetary Area (CMA) with Lesotho, Swaziland and South Africa. South Africa is the anchor country to which the smaller member states have surrendered monetary policy authority. This thesis therefore examines the empirical relationship between the South Africa repo rate (SArepo) on the one hand and Namibia’s repo rate (Namrepo), Prime Lending Rate (PLR), Private Sector Credit Extension (PSCE), Consumer Price Index (CPI) and Gross Domestic Product (GDP) on the other hand. The credit channel of the monetary policy transmission mechanism informs the theoretical foundation of the thesis. Vector Autoregression modelling, variance decomposition and impulse response functions were used to explore the nature and strength of the relationship between the SArepo and said variables in Namibia. This thesis used quarterly data for the period 2003 to 2017. The variation in the Namrepo was predominantly explained by the SArepo, which confirmed that the Namrepo strongly followed the SArepo. The impulse response function results found that the impact of a contractionary monetary policy shock (an increase in the SArepo) lasted for up to six quarters before the effect started to fade. The Namrepo exhibited a positive response to an increase in the SArepo, although the magnitude of the response started to fade after the third quarter. The PLR, as a representative of market rates in Namibia, also exhibited a positive response to an increase in the SArepo. The results were similar for the Namrepo and the PLR because changes to the NamRepo are passed through immediately to the market interest rates. On the real variables, the study found that a contractionary monetary policy shock initiated in South Africa resulted in an increase in inflation in Namibia of less than 0.4 percent, whereas output declined by less than 1.0 percent. Interestingly, a Namibia (domestic) contractionary monetary policy shock resulted in a decline in prices of less than 0.4 percent. GDP, on the other hand, exhibited a positive response to a contractionary monetary shock, with an increase of less than 2.0 percent in the first four quarters of the period observed. The results reflected that a contractionary monetary policy shock from South Africa was more effective with regard to its impact on GDP; however, a domestic monetary policy shock was more effective at impacting on domestic inflation compared to the impact from South Africa.
- Full Text:
- Date Issued: 2020
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