IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v15y2023i11p40.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/49391/53327
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/49391
    Download Restriction: no
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gutiérrez-Romero, Roxana & Ahamed, Mostak, 2021. "COVID-19 response needs to broaden financial inclusion to curb the rise in poverty," World Development, Elsevier, vol. 138(C).
    2. Karimova, Amira & Simsek, Esra & Orhan, Mehmet, 2020. "Policy implications of the Lucas Critique empirically tested along the global financial crisis," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 153-172.
    3. David Damiyano & Stephen Mago, 2023. "An Analysis of the Impact of Financial Inclusion on Poverty and Development: Case of SACU Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 141-147, November.
    4. Abeyratne, Sirimal., 2012. "Employment implications of the 'five - hubs strategy' of Sri Lanka," ILO Working Papers 994688283402676, International Labour Organization.
    5. Sof'a Gallardo & Carlos Madeira, 2022. "The role of financial surveys for economic research and policy making in emerging markets," Chapters, in: Duc K. Nguyen (ed.), Handbook of Banking and Finance in Emerging Markets, chapter 36, pages 676-686, Edward Elgar Publishing.
    6. repec:ilo:ilowps:458009 is not listed on IDEAS
    7. Primrose Zama Ngema & Melusi Sibanda & Lovemore Musemwa, 2018. "Household Food Security Status and Its Determinants in Maphumulo Local Municipality, South Africa," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    8. Olufemi Adewale Aluko & Oladapo Fapetu & Julius Oyebanji Ibitoye, 2021. "Do Openness and Democracy Deepen Banking Sector in Sub-Saharan Africa?," Global Business Review, International Management Institute, vol. 22(2), pages 279-289, April.
    9. Abuka, Charles & Alinda, Ronnie K. & Minoiu, Camelia & Peydró, José-Luis & Presbitero, Andrea F., 2019. "Monetary policy and bank lending in developing countries: Loan applications, rates, and real effects," Journal of Development Economics, Elsevier, vol. 139(C), pages 185-202.
    10. Shahid Manzoor Shah & Amjad Ali, 2023. "Macro Dimensions of Financial Inclusion Index and its Status in Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 1-12, March.
    11. Oluwatosin Adeniyi & Oludele Folarin, 2023. "Industrialisation, Finance, and Urbanisation in Africa," Working Papers of the African Governance and Development Institute. 23/065, African Governance and Development Institute..
    12. repec:ilo:ilowps:464436 is not listed on IDEAS
    13. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
    14. Justin Christopher Yang & Andres Roman-Urrestarazu & Carol Brayne, 2018. "Binge alcohol and substance use across birth cohorts and the global financial crisis in the United States," PLOS ONE, Public Library of Science, vol. 13(6), pages 1-18, June.
    15. Thorsten Beck & Robert Cull, 2013. "Banking in Africa," CSAE Working Paper Series 2013-16, Centre for the Study of African Economies, University of Oxford.
    16. Olarewaju Odunayo Magret & Migiro Stephen Oseko & Sibanda Mabutho, 2018. "Dividend Payout, Retention Policy and Financial Performance in Commercial Banks: Any Causal Relationship?," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(1), pages 37-62, April.
    17. repec:ilo:ilowps:482779 is not listed on IDEAS
    18. repec:ilo:ilowps:464250 is not listed on IDEAS
    19. Ozili, Peterson Kitakogelu, 2021. "Financial inclusion and legal system quality: are they correlated?," MPRA Paper 110518, University Library of Munich, Germany.
    20. Wannaphong Durongkaveroj, 2018. "BOOK REVIEW: “Global Inequality: A New Approach for the Age of Globalization”," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(03), pages 793-797, June.
    21. Artner, Annamária, 2013. "A fiatalok munkanélküliségének kérdéséhez Európa példáján keresztül [Contribution to the problem of the youth unemployment through the example of Europe]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1370-1392.
    22. Ozili, Peterson K, 2022. "Financial inclusion and sustainable development: an empirical association," MPRA Paper 115772, University Library of Munich, Germany.
    23. Ahmad Hassan Ahmad & Christopher Green & Fei Jiang, 2020. "Mobile Money, Financial Inclusion And Development: A Review With Reference To African Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 753-792, September.
    24. Mutarindwa, Samuel & Schäfer, Dorothea & Stephan, Andreas, 2021. "Differences in African banking systems: causes and consequences," Journal of Institutional Economics, Cambridge University Press, vol. 17(4), pages 561-581, August.

    More about this item

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:15:y:2023:i:11:p:40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.