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The Relationship Between Stokvels and Banking Sector Efficiency: An ARDL Approach

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  • Lindiwe Ngcobo

Abstract

This study examines the cointegration relationship long-run between stokvels and banking sector development measured by banking sector efficiency in South Africa by using the ARDL approach technique with economic time series data ranging from 1987Q3 to 2020Q1. This study reveals that in the long-run, stokvel savings has a negative relationship with banking sector development. In the short run results are negative and significant coefficient. This study reveals implications for policymakers should promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and promote consumers.

Suggested Citation

  • Lindiwe Ngcobo, 2023. "The Relationship Between Stokvels and Banking Sector Efficiency: An ARDL Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(11), pages 1-40, November.
    • Handle: RePEc:ibn:ijefaa:v:15:y:2023:i:11:p:40
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    References listed on IDEAS

    as
    1. Lindiwe Ngcobo & Joseph Chisasa, 2018. "Characteristics of Credit Instruments Issued by Stokvels in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 240-250.
    2. Franklin Allen & Elena Carletti & Robert Cull & Jun ‘QJ’ Qian & Lemma Senbet & Patricio Valenzuela, 2014. "The African Financial Development and Financial Inclusion Gaps," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 614-642.
    3. Verick, Sher & Islam, Iyanatul, 2010. "The Great Recession of 2008-2009: Causes, Consequences and Policy Responses," IZA Discussion Papers 4934, Institute of Labor Economics (IZA).
    4. repec:ilo:ilowps:457693 is not listed on IDEAS
    5. Biyase Mduduzi & Fisher Bianca, 2017. "Determinants of Access to Formal Credit by the Poor Households," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 62(1), pages 50-60, April.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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