Panel Granger Causality between Bank Competition and Profitability for Multinational Banks in Sub Saharan Africa

2020 ◽  
Author(s):  
Kibs Boaz Muhanguzi
Keyword(s):  
Granger Causality ◽  
Sub Saharan Africa ◽  
Bank Competition ◽  
Multinational Banks ◽  
Panel Granger Causality ◽  
Sub Saharan

scholarly journals Financial Development and Energy Consumption in Sub-Saharan Africa: Evidence From Panel Vector Error Correction Model

SAGE Open ◽  
2020 ◽  
Vol 10 (3) ◽  
pp. 215824402093543
Author(s):  
Chigozie Nelson Nkalu ◽  
Samuel Chinwero Ugwu ◽  
Fredrick O. Asogwa ◽  
Mwuese Patricia Kuma ◽  
Queen O. Onyeke
Keyword(s):  
Energy Consumption ◽  
Error Correction ◽  
Granger Causality ◽  
Financial Development ◽  
Sub Saharan Africa ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Sub Saharan

This study examines the nexus between financial development and energy consumption/use in Sub-Saharan Africa (SSA) using a panel vector error correction model (VECM), cointegration, and Granger causality tests over the period ranging from 1975 to 2017. The annual panel time-series data generated from the World Bank database were tested for unit-roots processing using both the Levin–Lin–Chu and Im–Pesaran–Shin before proceeding to Johanson cointegration technique, the results of which motivated the choice of adopting the panel VECM rather than panel vector autoregression in the methodology. From the estimation result especially on the variables of interest, there exists a positive and statistically significant relationship between financial development and energy consumption in the long run, but not statistically significant in the short run. Further findings from the panel Granger causality test shows a unidirectional causality running from financial development to energy consumption, gross domestic product per capita, population growth to urbanization with no feedback. Among a series of policy recommendations, the monetary authorities in Sub-Saharan African countries should ensure optimal utilization of financial instruments and technologies available in the system to enhance more robust financial development to boost efficiency in energy consumption in the region in line with the sustainable growth theory.

scholarly journals Credit risk and bank competition in Sub-Saharan Africa

2020 ◽  
Vol 44 ◽  
pp. 100716
Author(s):  
Michael Brei ◽  
Luc Jacolin ◽  
Alphonse Noah
Keyword(s):  
Credit Risk ◽  
Sub Saharan Africa ◽  
Bank Competition ◽  
Sub Saharan

scholarly journals Financial Inclusion and Bank Competition in Sub-Saharan Africa

2018 ◽  
Vol 18 (256) ◽  
pp. 1 ◽  
Author(s):  
Azanaw Mengistu ◽  
Hector Perez Saiz
Keyword(s):  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Bank Competition ◽  
Sub Saharan

scholarly journals An analysis of Granger causality between sovereign credit rating and economic growth in Sub-Saharan Africa

2020 ◽  
Vol 17 (4) ◽  
pp. 85-93
Author(s):  
Misheck Mutize ◽  
Virimai V. Mugobo
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Foreign Currency ◽  
Credit Rating ◽  
Developing Economies ◽  
Credit Ratings ◽  
Sub Saharan Africa ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings ◽  
Sub Saharan

Interest in the relationship between credit rating and economic growth is growing as emerging economies increasingly integrate into international financial markets. Without credit ratings, developing economies would not have been able to successfully issue their sovereign bonds to support economic growth. Therefore, this paper examines a causality relationship between Standard & Poor’s long-term foreign currency sovereign credit ratings and economic growth in 19 Sub-Saharan countries over the period from 2003 to 2018. The results of the Granger causality tests show a unidirectional causality from sovereign credit ratings to economic growth, not vice versa. This implies that economic growth is not significant in determining sovereign credit ratings. It can thus be concluded from these findings that sovereign credit ratings are proactive actions by rating agencies that are relevant in determining future economic growth. Thus, investors benefit from utilizing credit ratings to prevent inherent information asymmetry in fundamental economic factors. Therefore, it is important for policy makers to pay attention to sovereign credit ratings when formulating macroeconomic policies.

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