scholarly journals DETERMINANTS OF SAVING CULTURE AMONG HOUSEHOLDS IN KENYA. A SURVEY OF WORKING POPULATION IN NAIROBI COUNTY.

2016 ◽  
Vol 1 (1) ◽  
pp. 16-38
Author(s):  
Sarah Momanyi ◽  
Samuel Wainaina
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Durable Goods ◽  
National Income ◽  
Demographic Factor ◽  
Working Population ◽  
Study Results ◽  
The Future ◽  
The Government ◽  
The Interest Rate

Purpose: The purpose of this study was to establish the determinants of saving culture among households in Kenya’s survey of households residing in Nairobi County.Methodology: The research used a descriptive research design.  The target population for this research study included the working population in Nairobi County. According to 2009 Census, the entire working population is over 985,016. This study adopted convenience sampling method. The sample size of 150 was arrived at using a sampling formula. Descriptive statistics such as mean and frequencies and inferential statistics such as correlation were used. These measures were calculated using Statistical Package for the Social Sciences (SPPS 17.0) software. Results: The study finding was to establish the motives for savings among working population in Nairobi County. Results led to the conclusion that the top five rated motives for saving were; saving for down payment for durable goods, saving for future emergencies, accumulate funds for starting a business, reserve for future necessities and to gain financial independence in the future.Other motives that were also rated highly include; to secure the future of their children and their needs, savings plan for the long term, save as a precaution since the future is unknown, inheritance for my children. The least ranked motives were to buy a house or durable goods, old age, holidays, and to have their money tied up for longer periods of time. The study findings also indicated that the level of education is a significant demographic factor that influences saving culture. The study findings indicated that respondents who were more likely to save were highly educated and those that were lowly educated were less likely to save. Furthermore, study findings led to the inference that age is a significant demographic factor that influences saving culture. The study findings revealed that young and middle aged people are more likely to save than old people. Results indicate that marital status is a significant demographic factor that influences saving culture. The study findings indicated that the married were more likely to save than single. Results also indicate that the monthly income is a significant demographic factor that influences saving cultureThe results led to conclusion that interest rates affect the amount they saved. This implies that interest rate has a significant effect on savings. Results led to conclusion that statement that the higher the interest rate the higher they save. This implies that higher the interest rate leads to low saving. This further implies that a negative significant relationship exists between interest rate and saving. The study findings also indicate that majority disagreed with the statement that inflation affects the amount they save. The results also indicated that majority agreed with the statement that they tended to save more in an unstable inflation environment. This implies that inflation had a positive effect on saving among working population in Kenya. The majority agreed that the level economic growth affected the amount they saved. The results also indicated that the majority agreed with the statement that they tended to save more during periods of high economic growth. This led to conclusion that economic growth had a positive and significant effect on savings among the working population in Kenya.Unique contribution to theory, practice and policy: In line with study results, it is recommended that the government and women empowerment organizations need to encourage savings among women. The education systems should be friendly to the working population in Nairobi through lowering of university entry costs and the improvement in the quality of education offered by middle level colleges. This is because it would positively influence savings. The government of Kenya may improve the income of the working population by reducing taxes on income and creating more employment opportunities. This would effectively boost savings. According to results, it is recommended that the government should adjust its fiscal policies by collecting more taxes and spending more as this will improve the level of national income.

scholarly journals VARIABEL MAKRO EKONOMI DAN NON PERFORMING LOAN: BUKTI EMPIRIS DARI BANK UMUM DI INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 1-14
Author(s):  
Amri Amri ◽  
Rahma Harianti
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Significant Influence ◽  
Commercial Banks ◽  
Multiple Regression Model ◽  
Economic Policies ◽  
Macroeconomic Variables ◽  
Corruption Perception ◽  
The Government ◽  
The Interest Rate

This study is aimed at empirically explores the effect of macroeconomic variables i.e., economic growth, interest rate and the Corruption Perception Index (CPI) on the Non-Performing Loans (NPL) of the commercial banks in Indonesia. An annually data from the years 2003 to 2014 were analysed using the multiple regression model. The study documented that: (i) the economic growth has insignificant effect on the Non-Performing Loans (NPL); (ii) the CPI has a negative significant influence on the Non-Performing Loans; and (iii) the interest rate has a positive significant influence on the Non -Performing Loans (NPL). This findings implied that the central bank of Indonesia (Bank Indonesia) and the government should design together the economic policies and regulations that could prevent increasing in the Non-Performing Loans (NPL) of the commercial banks in the country.Penelitian ini bertujuan untuk mengeksplorasi pengaruh variabel makroekonomi yaitu pertumbuhan ekonomi, tingkat suku bunga dan Indeks Persepsi Korupsi (CPI) terhadapkredit macet (NPL) bank- bank komersial di Indonesia. Data yang digunakan adalah tahunan dari tahun 2003-2014 yang dianalisis menggunakan model regresi berganda. Hasil studi ini menunjukkan bahwa: (i) pertumbuhan ekonomi tidak memiliki pengaruh signifikan pada Kredit Macet; (ii) CPI memiliki pengaruh signifikan negatif pada Kredit Macet; dan (iii) tingkat suku bunga memiliki pengaruh signifikan positif terhadap Kredit Macet. Temuan ini menyiratkan bahwa bank sentral (Bank Indonesia) dan pemerintah harus merancang bersama-sama kebijakan ekonomi dan peraturan yang bisa mencegah peningkatan kredit macet bank-bank komersial di Indonesia.

scholarly journals INFLUENCE OF COST OF CREDIT ON CONSUMER SATISFACTION: A CASE OF THE NIC BANK LIMITED

2017 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Christopher Mwangi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Consumer Satisfaction ◽  
Sampling Technique ◽  
Primary Data ◽  
Infinite Population ◽  
Study Results ◽  
The Government ◽  
The Interest Rate

Purpose: The purpose of the study was to establish the influence of cost of credit on consumer satisfaction, a case of the NIC bank limited.Methodology: The descriptive survey research design was preferred for the study. The population of the study was over 10,000 credit card holders in NIC Bank. Snow balling sampling technique was appropriate for this study because credit card customers were not keen on cooperating because of the sensitivity of information gathered and only cooperated on referral from friends. Fishers’ formula was used for calculating the sample size of an infinite population which amounted to 384 but for the purpose of improving the response rate, the study added 16 more respondents to total up to 400. The study used primary data. The study used a questionnaire as the preferred data collection tool. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of descriptive and inferential statistics. The results were presented using tables and pie charts to give a clear picture of the research findings.Results: Based on the findings, the study conclded that that credit card interest rate was competitive compared to other offerings in the market, the credit card interest rate is better than overdraft rates.  It was concluded that the credit card interest rate was affordable compared to shylock interest rates. Results led to the conclusion that the penalties were lower than those of competitors. Study results show that the credit card joining fee was affordable compared to other products, the credit card joining fee was lower than that of competitors. Results also led to the conclusion that the penalties were very high. Results also led to the conclusion that credit card interest rate were affordable compared to Sacco interest.Unique contribution to theory, practice and policy: Based on the findings, the study recommends that the Government should legalise the interest rate within the banks and make it affordable to the consumers. In addition the banks should lower the credit card joining fee as this will motivate more customers to join and therefore an additional benefit the banks.

scholarly journals An Empirical Assessment of the Effect of Taxes and Interest Rate on Economic Growth in Jordan: An Application of Dynamic Autoregressive-Distributed Lag

2020 ◽  
Vol 11 (3) ◽  
pp. 92
Author(s):  
Bashar Younis Alkhawaldeh ◽  
Suraya Mahmood ◽  
Aminu Hassan Jakada
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Time Series Data ◽  
Series Data ◽  
Negative Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Capital Ratios ◽  
The Government ◽  
The Interest Rate

This study aims to examine the effect of taxes and interest rate on economic growth in Jordan by employing the time series data from 1970-2019. Furthermore, this study applies the Augmented Dickey-Fuller, Phillips-Perron, Saikonen and Lütkepohl and Zivot-Andrews test of unit root. Moreover, the study uses cointegration test developed by Gregory and Hansen to investigate the long-run relationship and the dynamic autoregressive distributive lags were used for the estimation result. The long run and short-run estimates reveal the positive and negative effects of taxes and the interest rate on economic growth respectively. While the 1997 Asian financial crisis and 2015 food crisis show a negative effect on economic growth. Based on the findings, the study recommends that the government authorities in Jordan should lower the interest rate that will increase the investment in order to have faster economic growth. The government should urgently plan to broaden the tax base to stimulate economic growth in Jordan. Regulators should encourage banks to start raising capital immediately to strengthen capital ratios well above prudential norms, and prepare schemes for public recapitalization and, where appropriate, public purchases of non-performing assets. The next policy fulfils the government's need to enhance agricultural productivity through better technology to ensure long-term food security and reduce poverty, as well as help to boost economic growth.

Capital Budgeting and business cycles

2021 ◽  
pp. 315-335
Author(s):  
Edward W. Fuller
Keyword(s):  
Interest Rate ◽  
Demand Curve ◽  
Supply And Demand ◽  
Investment Project ◽  
The Other ◽  
Investment Projects ◽  
Scarce Resources ◽  
Other Hand ◽  
The Future ◽  
The Interest Rate

Every investment project is aimed at achieving some future goal. This goal can only be attained by employing scarce resources, like time. Every investment project entails foregoing other investment projects. It is impossible to undertake all investment projects simultaneously because resources are scarce. This means each investment project is subject to cost. The investment project may be unsuccessful in achieving the future goal and the entrepreneur may suffer a loss. On the other hand, investment projects are only undertaken because they are perceived as more valuable than their costs. Every investment project undertaken implies the possibility of earning a profit. Investment projects take time. An investment project can be represented by a time line. Time A represents the beginning of the production process. Time B is the end of the production pro-cess. Line AB is called the period of production. Present goods are scarce resources that can be consumed im-mediately. On the other hand, future goods cannot be consumed immediately. Future goods are only expected to be consumer goods at some point in the future. An investment project entails making an investment at time A and receiving a present good at time B. All else equal, present goods are more valuable than future goods.1 Any good at time A is more valuable than the same good at time B. This is called time preference. Money is the present good par excellence. Therefore, future goods can be called future cash flows. All else equal, present money is more valuable than future money. This is called the time value of money. The interest rate is the price of present goods in terms of future goods. The interest rate is the price which equates the amount of present goods provided by savers with the amount of present goods demanded by investors. Like all prices, the interest rate is determined by supply and demand. Savers are suppliers of present goods. The supply curve (S) is the quantity of present goods supplied at each interest rate. Factor owners (investors) are the demanders, or buyers, of present goods. The demand curve (D) is the quantity of present goods demanded at each interest rate. The intersection of the supply and demand curve determines the interest rate. The interest rate is determined by the supply and demand for present goods:2

Coalition conflicts carry credibility costs in Chile

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Left Wing ◽  
Municipal Elections ◽  
Content Type ◽  
Reform Programme ◽  
The Future ◽  
General Elections ◽  
The Government

Subject Outlook for the coalition and the government's reform programme. Significance Seventeen months into its four-year term, the centre-left government of President Michelle Bachelet is deeply divided on the future of its reform plans, with the conflicts aggravated by sluggish growth and the administration's mounting unpopularity. There are signs that, looking ahead to October 2016 municipal elections and November 2017 general elections, the centre Christian Democrat Party (PDC) is starting to mark a distance from the government in a bid to appeal to voters alienated by the coalition's left wing. Impacts Infighting within the coalition will persist to the detriment of the government's credibility. For the 2016 municipal elections, the two wings of the coalition will probably field separate candidates. Uncertainty about the government's reform plans will hamper any acceleration of economic growth.

scholarly journals The Impact of Tourism Development on Economic Development: The Case of Zanzibar

2021 ◽  
pp. 41-50
Author(s):  
Hafidh Ali Hafidh ◽  
Zulekha Ayoub Rashid
Keyword(s):  
Economic Development ◽  
Government Expenditure ◽  
National Income ◽  
Tourism Development ◽  
Small Island ◽  
Stable Relationship ◽  
Long Run ◽  
Study Results ◽  
The Government ◽  
The Impact

Tourism is perceived as one of the world’s fastest growing service sectors and a major source of economic development for many, if not all, developing countries. Zanzibar as a developing country and also is a small island which have small economy, its national income depend much on tourism contribution, Therefore this paper aim to examine the impact of tourisms development to the economic development of Zanzibar, using the data based on annual time series from the period 1989–2019 and also employing Vector Error Correlation Model (VECM) to arrive at conclusions from the data in the study area. The study results found a long-run stable relationship among tourism development and economic development of Zanzibar, there is a positive and significant impact that exists between GDP and international tourism arrivals, inflation and government expenditure respectively while only inflation results show positive but insignificant impact. In order to increase the economic development in Zanzibar through the tourism sector, there is a need for the government and other stakeholders of tourism to put much consideration on this sector so as to improve overall development of Zanzibar economy.

scholarly journals Some Factors for Growing Savings in Kosovo

2018 ◽  
Vol 1 (3) ◽  
pp. 131
Author(s):  
Fitim Mexhuani ◽  
Artur Ribaj
Keyword(s):  
Economic Growth ◽  
Financial Education ◽  
Demographic Variables ◽  
Financial Capital ◽  
Real Sector ◽  
Key Factors ◽  
Network State ◽  
Domestic Savings ◽  
The Government ◽  
The Interest Rate

The main problem for developing countries is the lack of investment, which consequently limits the country's economic growth. Developing the real sector of any economy is not an issue that should be left to random actors. So, the Government of Kosovo, Bank of Kosovo and Commercial Banks are the three main actors that should be focused on factors that influence the growth of the level of domestic savings. By channeling savings into Kosovo's economy through banks for investments in healthy financial capital, Kosovo becomes economically and politically more developed and independent. This paper based on literature analyses and data processing identifies some of the factors that could affect the growth of savings in Kosovo, as these will lead to higher level of financial capital for entrepreneurs and the continuity of the country's economic growth. Taxation and income levels, demographic variables, confidence and deposit security, banking network, state-owned bank, financial education and financial inclusion are among the key factors of increasing savings. The interest rate is also important factor, but since this factor is often subject of other papers, we did not incorporate it in this paper.

scholarly journals SISTEM MONETER DALAM PERSPEKTIF EKONOMI ISLAM

ALQALAM ◽  
2012 ◽  
Vol 29 (1) ◽  
pp. 141
Author(s):  
ZAINI IBRAHIM
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Economic System ◽  
Global Financial Crisis ◽  
Market Price ◽  
National Income ◽  
Monetary System ◽  
Goods Market ◽  
The Interest Rate

In many economic literatures, economy is divided into two sectors, real sector which covers seroice market and goods market, and monetary sector which consists of money market and equity market. In a part of economic system, monetary that runs in a country will affect the economic rate. Monetary economy can be applied in a polity, called monetary policy. In a conventional discussion, a monetary policy is run in order to reach the increase of national income, to stabilize market price, and to control the inflation rate. To get the goal of that macro-economy, the interest rate is used, in which it becomes the weakness of conventional monetary system. The use of interest rate, furthermore, has caused the economic crisis, indeed global financial crisis. In term of new economic system needs, Islamic monetary system riflers a solution to overcome financial crisis. The riffered system is asset based transaction, free of interest, avoidance of transactions containing speculation (maisir) and uncertainty (gharar). Moreover, it also uses stable curencies, i.e. dinar and dirham. Keyword: Monetary system, interest rate, fiat monry, dinar, dirham.

scholarly journals FINANCIAL DEEPENING RELATIONSHIP WITH ECONOMIC GROWTH IN INDONESIA

2021 ◽  
Vol 6 (1) ◽  
pp. 133
Author(s):  
Novarinda Vanny Kusuma Putri ◽  
Muhammad Khoirul Mubin
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Exchange Rates ◽  
Secondary Data ◽  
Money Market ◽  
Financial Deepening ◽  
Negative Interaction ◽  
Market Interest Rate ◽  
The Republic ◽  
The Government

This article aims to analyze the interaction between financial deepening and economic growth in Indonesia. In this case, it also indirectly analyzes the interaction between the research control variables, namely the interbank money market interest rate and the exchange rate with economic growth in Indonesia. The journal uses secondary data, including taking from the official website of the Central Bureau of Statistics and Bank Indonesia, which is the website of the Republic of Indonesia government. This journal uses an analysis of the interaction between variables in the period 2010-2019. The method used is the VECM method, a method used to explore financing and exchange rates which have a significant negative interaction with economic growth in Indonesia. And the interbank money market interest rate has a significant negative interaction with economic growth in Indonesia. In addition, the financial interior also has directional interactions with the government in Indonesia so that it can be said to follow bidirectional causality.Keywords: Financial Deepening, Economic Growth, VRCM, and bidirectional causality JEL : G320, C320

scholarly journals An Insight Regarding Economic Growth and Monetary Policy in Romania

2015 ◽  
Vol 62 (s1) ◽  
pp. 85-95 ◽  
Author(s):  
Valentina Mera ◽  
Monica Pop Silaghi
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rate ◽  
Sacrifice Ratio ◽  
National Bank ◽  
Potential Gdp ◽  
The Interest Rate ◽  
The Cost ◽  
The Impact ◽  
The Sacrifice

Abstract This study introduces some aspects regarding the link between monetary policy and economic growth, through a rule well known in the literature which is named Taylor’s rule and through the concept of sacrifice ratio which encompasses the impact of the cost of disinflation on the economic growth of a country. In this paper, we rely on estimates of the growth of potential GDP of the National Bank of Romania for the period 2003-2006 while for the period 2007-2012 we rely on the estimates reported by the International Monetary Fund. Thus, we carry a deterministic exercise for computing the interest rate on the period 2003-2012 as depicted from the Taylor’s rule and we compare it with the effective monetary policy interest rate used by the National Bank of Romania. In the same time, we calculate the sacrifice ratio for the period 1997-2013 so as to be able to form an opinion regarding the cost of disinflation and its comparison with the typical estimates for larger time spans and for other countries.

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