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Electronic Commerce. Payment Instruments


  • Alin Titus PIRCALAB

    () (“Vasile Goldis” West University, Arad)


In consideration of the roles of microfinance banks (MFBs) in poverty reduction, employment generation and overall development of an economy, particularly a less developed economy, the paper employs the methodology of ARDL-based Bounds test approach to co-integration and error correction analysis to investigate the determinants of loans and advances extended by microfinance banks in Nigeria using data spanning the period from 1992 to 2013. The empirical evidence indicates that the major determinants of the amount of loans and advances extended by MFBs are deposits, shareholders’ fund, liquidity ratio and inflation. Customers’ deposits positively affect MFBs’ loans and advances in the short-run and long-run, though the long run effect is not significant. Shareholders’ fund also positively affects MFBs’ loans and advances in the short-run and long-run. Inflation and liquidity ratio negatively affect the amount of loans and advances extended by the MFBs. Measures recommended by the paper to boost the supply of loans and advances by the MFBs to enhance their contributions to economic growth and development of Nigeria include mobilization of more deposits, expansion of shareholders’ base and fund and, credit risk management by the MFBs, setting the liquidity ratio by the Central Bank at levels that will not over-contract the ability of MFBs to extend loans and advances to microenterprises and, control of inflation by the relevant authorities.

Suggested Citation

  • Alin Titus PIRCALAB, 2015. "Electronic Commerce. Payment Instruments," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 3(4), pages 33-45, December.
  • Handle: RePEc:hyp:journl:v:3:y:2015:i:4:p:33-45

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    data interchange; electronic commerce; electronic money;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy


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