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The level of financial inclusion in India is not only low but also differ widely across states of India. This paper aims to identify and estimate the effects of the determinants of deposit and credit penetration in states of India, the indicators of financial inclusion, using state-wise panel data over the period 2001-2013, applying panel regression methods. The paper observes a relatively high level of bank accounts holding in states like Himachal Pradesh and a low level of financial activities in states like Nagaland and Bihar. The panel estimates of accounts penetrations reveal a significant effect of NSDP per capita income on deposit penetration, while beyond the income level, bank branch networking and access to banks also determine the level of credit penetration in states of India. The intensity of financial inclusion in Indian states depends on not only banking sector variables but also other state-level development and economic factors. This study reveals that in deposit penetration, income and industrialisation of states play a vital role and apart from income and industrialisation, population density and bank branch networking in states also matter for credit penetration.

Key words: Financial inclusion, deposit and credit penetration, panel estimation.

Empirical evidence shows increasing financialisation of commodity markets. The process of financialisation of commodity markets has resulted in many institutional investors treating primary commodities such as copper as an important part of their investment portfolio. Using exports and stock price data of Zambia’s key mining and trading firms, this paper investigates the extent to which these are associated with the global copper prices. Ganger-causality tests are used to test for the possible association among these variables. The study finds indications of positive associations between share prices and commodity prices. We find a strong bi-directional causality between commodity prices and share prices, and between share prices and export values. However, variations in export volumes and global copper consumption are not associated with changes in share prices. The significant causal relationship between global copper prices and share prices of a leading foreign mining sector investor implies the need for fiscal and mining policies that reduce the county’s exposure to shocks in international financial markets.

Key words: Copper, finacialisation, Granger-causality, Zambia.

JEL Codes: B22, B23, B27, C01.

This paper examines the determinants of capital flight in sub Saharan African countries (SSA) by introducing corruption as a focus variable in the model. The econometric analysis is based on data from 25 SSA countries over the period 1986–2010 using dynamic panel data estimation methods: Corruption, our focus variable retains its expected positive sign and is statistically significant across all the estimations. The relationship remains very strong even when other standard control variables are taken into account. These results confirm our hypothesis that the nature of corruption in SSA is such that it encourages and promotes capital flight. The empirical findings also indicate that the capital flight in SSA countries is driven mainly by corruption, lag capital flight, external debt, foreign direct investment, and macroeconomic uncertainty. Based on these results, the paper recommends that governments in the region should manage their external debt efficiently, and stabilize their monetary and macroeconomic policies in order to curtail capital flight. Finally, our results are also robust to different specifications, measures of corruption, and econometrics estimation techniques.

Key words: Corruption, Capital Flight, Economic Growth, SSA.

JEL classification: F32, F34, O17, O55

The paper is on institutional credit and growth nexus of SMEs in Nigeria; the banking sector perspective. Time series date spanning the period of forty five (45) years was sourced from CBN statistical bulletin for 2019. The SMEGDP shows a rising trend and recorded major peaks in 2010, 2011, 2014. The commercial bank credit to SMEs (CBC) exhibit unstable trend with remarkable peak in 2002 and 2017. Microfinance bank credit to SMEs also shows an unstable trend. The regression result above shows that commercial bank credit to small and medium enterprises (CBC) and banking system lending rate (BSL) have a negative impact on SMEs growth in Nigeria. Also, there is a direct/positive relationship between microfinance credit to SMEs (MFC) and SMEs growth which implies that, unit increase in MFC will lead to 5.550403 unit increases in SMEs growth in Nigeria. We conclude that institutional credit to SMEs is determinant variable of SMEs growth in Nigeria. Based on the findings of this study, it is recommended that, banks should increase their lending activities to small and medium enterprises in Nigeria.

Key words: Commercial bank credit, Microfinance bank credit, SMEs, Nigeria

Using nationally representative Panel survey data from Tanzania, this study estimates the determinants and impact of smallholders’ livestock commercialization in the country. Results based on correlated random effect Probit and Tobit models, show that female livestock keepers are more likely to commercialize than their male counterparts, but there is no statistical difference on the magnitude of commercialization intensity. In addition, despite negligible role of education on livestock, commercialization status it is negatively correlated with the intensity of commercialization conditional on commercialization choice. We further document a positive net impact of commercialization on households’ welfare, proxied by household expenditure.

Key words: Smallholders, commercialization, off take rates, Tanzania.

Considered as the main source of economic growth in the United States of America and other northern countries, Information and Communication Technologies (ICTs) are seen as a key factor that can boost Africa’s development. They have proved to be very indispensable in recent years and especially in the management of the health crisis linked to the Coronavirus pandemic. That is why this paper has been set out to analyze their effects on economic growth. The originality of this paper lies on the one hand in the consideration of ICTs as endogenous variables and on the other hand in the econometric technique used. The estimates indicate three main results: (i) ICTs have a marginal, positive and significant influence on economic growth; (ii) ICT components do not individually influence economic growth. Their effect is only perceptible when they are grouped or semi-grouped; (iii) unlike ordinary goods and services, whose imports unbalance the trade balance, imports of ICT goods and services positively influence economic growth in WAEMU countries. These technologies are therefore intermediate goods and thus gross fixed capital formation, the wear and tear of which benefits national production. These results could improve if the countries under consideration develop ICT hardware producing sectors.

Key words: ICT; economic growth; WAEMU.

JEL Classifications: O47- L96 - O55

Natural endowments and economic growth are often connected. However, this relationship is still controversial. Although natural resources are crucial for economic growth, there is a kind of puzzling aspect in their relationship. For the oil-based economies, the negative impact becomes clear. This paper explores how far extracting oil and using its revenues are affecting the economic growth in Libya as an example of a highly dependent economy on natural resources. Applying Charles Jones model for this purpose and utilising data for the period of (1962-2017). The paper explores the potential impacts of natural resources on changes in output controlled with population growth. This model explains the influences of both natural resources and population growth on economic growth. Findings confirmed the natural resource curse in the Libyan economy and showed that it experiences an unbalanced growth.

Furthermore, even if the growth rate is adjusted to the Balanced Growth Path BGP, it seems to decline over time as population growth is higher than natural resources can cope. Authority needs to use more proportions of oil (Higher depleting rate) if the previous standards of living to be maintained. This means that along with recent population growth, the resources available eventually depletes, would not be sufficient to prevent a foreseen problem.

Key words: Non-renewable Resources, Economic Growth, Macroeconomics.

JEL Classification: Q32, 040, E01

On the basis of some existing researches and work, this paper tries to triangulate the importance of social inclusion that helps to uplift the living standards of poor and low income people. A broad range of literature existed in this matter emphasized on the inclusion of a group excluded people-is found as a major issue in this study. In contrast, two issues intact with this study are emphasized here. Exclusion as being a chronic problem in development, social inclusion is not highlighted in the developing countries like Nepal. Secondly, elimination of development hurdles present economically, socially or culturally are not highlighted as major issues in these countries. Noted these concerns, the researcher proposes a bottom-up model, however, not tested-to eliminate development hurdles first and effective implementation of development policies and programs then. This model seems effective in the context of developing countries due to some vital reasons. First, it promotes country’s development by zeroing development hurdles. Secondly, take-off stage of development is not self sustained unless agro-dependent mass won’t be shifted to industry, trade and commerce. To this extent, inclusion process can be an effective measure to promote people. Thirdly, backwash effects can be prevented by social inclusion agenda for underdeveloped countries because neglecting it may lead to decline in peripheral population and employment and hence leads to weaken the rural economy.

Key words: development, social inclusion, education and training, poverty, prosperity, bottom-up model.

JEL classification: O1, B55, P36, I30

Strategic lessons are drown based on Ramsey model of growth for the South Asia region and empirical panel data analysis on the determinates of growth in it. Given its size of population this region should push for growth and increase its share of global GDP up to 20 percent from roughly 6.5 percent in 2014. Such growth requires increasing the ratio of saving and investment from about 10 percent above the current averages to around 35 percent. Process of structural transformation should continue till both the output and employment in the agriculture sector are less than 5 percent from around 17 and 50 percent at this moment. Such transformation will occur as this region moves towards urbanization so that about 90 percent of the population lives in urban areas. The student teacher ratios should be reduced from 40 to around 16 to raise the cognitive skill of children to create human capital in science and technology. The trade ratio be increased to around 100 percent from the 50 percent to enhance both the supply and demand sides of these economies. The liquidity of the financial system should at least treble from now to have a smooth flow of credits for new and existing enterprises. Free convertibility of currency may protect this region from international shocks. Fruits of growth should be distributed more equally so that the gini coefficients remain under 35 percent.

Key words: Growth, economic development, South Asia, India, SAARC.