scholarly journals Effects of Interest Rate Deregulation on the Growth of Nigerian Agricultural Sector

2019 ◽  
Vol 1 (1) ◽  
pp. 107-112
Author(s):  
Opaluwa D. ◽  
◽  
Ocheni B. A. ◽  
Dauda S. N. ◽  
Adewale G. A.
Keyword(s):  
Interest Rate ◽  
Agricultural Sector ◽  
Interest Rate Deregulation

Modeling debt choice in agriculture: the effect of endogenous asset values

2017 ◽  
Vol 77 (1) ◽  
pp. 95-110 ◽  
Author(s):  
Maria Bampasidou ◽  
Ashok K. Mishra ◽  
Charles B. Moss
Keyword(s):  
Panel Data ◽  
Interest Rate ◽  
Agricultural Sector ◽  
Macroeconomic Policy ◽  
Rate Of Return ◽  
Data Set ◽  
Content Type ◽  
Asset Values ◽  
The Usa ◽  
Non Parametric

Purpose The purpose of this paper is to investigate the endogeneity of asset values and how it relates to farm financial stress in US agriculture. The authors conceptualize an implied measure of farm financial stress as a function of debt position. The authors posit that there are variations in the asset values that are beyond the farmer’s control and therefore have implications on farm debt. Design/methodology/approach The framework recognizes the endogeneity of return on assets (ROA). It uses a non-parametric technique to approximate the variance of expected ROA (VEROA). The authors model the rate of return on agricultural assets and interest rate with a formulation that focuses on macroeconomic policy. Further, the authors use a dynamic balanced panel data set from 1960 to 2011 for 15 US agricultural states from the Agricultural Resource Management Survey, and information from traditional state-level financial statements. Findings Estimation of linear dynamic debt panel data models accounting for the endogeneity of ROA and VEROA is a challenging task. Estimated variances are unstable. Hence, the authors focus on variance specification that uses the residuals squared from the ARIMA specification and non-parametric estimators. Arellano-Bover/Blundell-Bond generalized method of moments estimation procedures, although may be biased, show that VEROA has a negative and significant effect on the total amount of debt in the agricultural sector. Research limitations/implications The instruments used in this analysis are lagged regressors which may be weakly correlated with the relevant first-order condition, hence not properly identifying the parameters of interest. Future research could include the identification of better instruments, potentially use of sequential moment conditions. Originality/value Unlike previous study, the authors use non-parametric approximation of VEROA. The authors model the rate of return on agricultural assets and interest rate with a formulation that focuses on macroeconomic policy. Second, the authors make use of a large dynamic balanced panel data set from 1960 to 2011 for 15 agricultural states in the USA. To the best of the authors’ knowledge, this study is one of the few that provides evidence on risk-balancing behavior at the agricultural sector level, of the USA.

Indian Banking Sector Reforms: Review and Prospects

2005 ◽  
Vol 8 (2) ◽  
pp. 167-189 ◽  
Author(s):  
Tae Hwan Yoo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Banking Sector ◽  
Banking Industry ◽  
Indian Government ◽  
Reform Policy ◽  
Public Sector Banks ◽  
Positive Effects ◽  
Interest Rate Deregulation

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.

scholarly journals Selected Macroeconomic Variables and Agricultural Sector in Nigeria

2021 ◽  
Vol 7 (06) ◽  
Author(s):  
James Ese Ighoroje ◽  
Catherine, Ogheneovo Orife
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Money Supply ◽  
Agricultural Sector ◽  
Least Square ◽  
Domestic Product ◽  
Agricultural Output ◽  
Macroeconomic Variables ◽  
Ex Post

The study investigated effect of selected macroeconomic variables on agricultural sector output in Nigeria from 1987 - 2019. Annual Agricultural Output (AAO) represented the dependent variable for the study while gross domestic product, interest rate, money supply, and exchange rate represented the explanatory variables. Ex-post factor research design was employed for the study. Augmented Dickey Fuller Unit Roots test and Ordinary Least Square (OLS) Regression techniques were used to analyze data collected. The empirical investigation showed that gross domestic product as well as money supply has a positive and significant effect on agricultural output, while interest rate and exchange rate exerted a negative and insignificant effect on agricultural output. From the study, selected macroeconomic variables have positive effect on agricultural output in Nigeria and this has tremendously contributed to the country's growth and development. The study recommends amongst other; that government should accelerate the rate of economic growth by investing heavily on the agricultural sector so as to boost domestic production and enhance exportation in order to stabilize exchange rate while curbing inflation; give incentives to banks extending agricultural loans by lowering the lending rate on agricultural loans to ease access to funds for agricultural investment.

Low corporate lending reflects Russian growth outlook

2019 ◽  
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Agricultural Sector ◽  
Government Officials ◽  
New Approach ◽  
Content Type ◽  
Regulatory Policies ◽  
Corporate Credit ◽  
Corporate Borrowing ◽  
Credit Demand

Subject Corporate lending in Russia. Significance Corporate credit remained low in 2019. Government officials say the banks should be lending more to corporates to boost investment and hence growth, and reduce excessive lending to consumers who are liable to get into distress. The recent lowering of the key interest rate to 6.5% is intended to encourage corporate borrowing generally, and the Central Bank of Russia (CBR) is adopting more nuanced regulatory policies to encourage corporate lending to potentially risky but economically desirable customers such as smaller businesses and farms. Impacts Slower-than-expected corporate credit growth could endanger the six-year plan's target of an investment-to-GDP ratio of 25% in 2024. The CBR's new approach to prudential regulation will alter banks' lending strategies. Credit demand from small and medium-sized enterprises and the agricultural sector will be helped by loan subsidies from the state.

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