|
on Payment Systems and Financial Technology |
|
Issue of 2023‒11‒13
thirty-two papers chosen by |
| By: | Ozili, Peterson K |
| Abstract: | Central bank digital currency is non-physical money or the digital equivalent of physical money issued by a central bank. Nigeria is the first African country to issue a central bank digital currency, popularly known as the eNaira. This paper highlights the redesign features which the eNaira should possess for it to become very effective in offering payment solution and for macroeconomic stability. The eNaira should have an interest-bearing status, have enhanced security features and should offer zero transaction cost on eNaira transactions. |
| Keywords: | eNaira, central bank digital currency, Nigeria, interest-bearing CBDC, cryptocurrency, blockchain, payment system. |
| JEL: | E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118807&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This article explores the benefits and issues surrounding the digital Rupee, also known as the eRupee or the central bank digital currency in India. The study found that Indian people who were interested in ‘cryptocurrency’ information were also interested in ‘central bank digital currency’ information. The study also showed that the introduction of CBDC has potential benefits such as reduced dependency on cash, higher seigniorage due to lower transaction costs and reduced settlement risk. However, the India CBDC has associated risks that need to be carefully evaluated against the potential benefits. The introduction of a digital rupee or CBDC in India will require legal and regulatory changes to make the phased CBDC implementation possible. |
| Keywords: | India, CBDC, cryptocurrency, digital rupee, central bank digital currency, blockchain, distributed ledger technology. CBDC design, financial stability, monetary policy. |
| JEL: | E40 E42 E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118801&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | The paper presents a survey of central bank digital currency (CBDC) adoption in African countries. Secondary data based on desk research were used to conduct the survey. Data for each African country were collected from publicly available information about each country’s interest and efforts in issuing a central bank digital currency. The survey shows that 70 per cent of African countries have not shown any interest in central bank digital currency. The West African region has the highest number of countries that have not shown any interest in central bank digital currency. Only 4 African countries have a robust payment system infrastructure that can support central bank digital currency. Only 14 African countries have officially indicated interest in central bank digital currency. Only 13 African countries have announced that they are studying central bank digital currency to determine whether they will pursue central bank digital currency as a short-term or long-term goal. Only 4 African countries have reached the pilot test stage of issuing a central bank digital currency. Finally, only one African country has formally issued a central bank digital currency. The policy implication of the findings is that there is low interest in central bank digital currency in the African continent. The low interest in central bank digital currency in African is attributed to the strong preference for cash payments, lack of a robust payment system, low use of digital payments, central banks’ focus on other priorities, fear of failure, lack of government interest in digital currency and concerns about CBDC privacy risk and security threats. These factors can slowdown the level of development and economic inclusion in African countries. There is need to accelerate the issuance of CBDC in African countries. |
| Keywords: | central bank digital currency, CBDC, Africa, blockchain, distributed ledger technology, CBDC survey. |
| JEL: | E50 E51 E52 E58 E59 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118794&r=pay |
| By: | Teng, Huei-Wen; Härdle, Wolfgang Karl; Hafner, Christian M.; , e.a. |
| Abstract: | The rapid emergence of digital assets, underpinned by technological advancements such as blockchain, distributed ledger technology (DLT), and smart contracts, has triggered a paradigm shift in the global financial ecosystem. These digital assets, which encompass cryptocurrencies, tokenized securities, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDCs), hold the potential to transform financial markets by enabling new business models, investment opportunities, and efficient transaction mechanisms. However, their accelerated growth also introduces a unique set of challenges and risks, such as fraud, market manipulation, cybersecurity threats, and regulatory uncertainties. This position paper presents an interdisciplinary, empirical analysis of the digital asset landscape, focusing on the definition and classification of digital assets, their evolution from novelty to necessity, and the current state of adoption and regulation. We explore the various types of digital assets, their unique characteristics and use cases, and the technological innovations that have shaped their development, such as the advent of blockchain technology and the rise of decentralized finance (DeFi) and NFTs. Moreover, we examine the regulatory landscape surrounding digital assets, highlighting jurisdictional approaches, regulatory classifications, and key developments in the space, as well as the challenges and opportunities that regulators face in devising effective regulatory frameworks. To address the risks associated with the proliferation of digital assets, we outline several mitigation strategies and recommendations for regulators, market participants, and stakeholders based on quantitative analysis and empirical findings. These include balancing innovation and risk, by formulating regulations that safeguard the interests of consumers and investors while fostering an environment conducive to innovation; promoting global regulatory coordination and harmonization, to reduce the potential for regulatory arbitrage and enhance cross- border cooperation; and leveraging regulatory sandboxes and innovation hubs, to support the growth of digital asset businesses and facilitate continuous learning and adaptation. By adopting a forward-looking and flexible approach to regulation and engaging in ongoing dialogue with market participants and stakeholders, regulators can ensure that the benefits of digital assets are realized while mitigating the associated risks. |
| Keywords: | Digital assets ; Blockchain technology ; Regulatory frameworks ; Decentralized finance (DeFi) ; Non-fungible tokens (NFTs) |
| JEL: | G2 E4 K2 L5 O3 O1 |
| Date: | 2023–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2023030&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper provides insight into the trends to expect in the future of financial inclusion. The author identifies the past and recent changes occurring in the financial inclusion space, and based on these changes, make predictions about what to expect in the future of financial inclusion. The author predicts that, in the future, financial inclusion will witness increased digitalization; increased personalization of formal financial services; the provision of a wide range of formal financial services from a single platform; a shift from account number to mobile number to drive financial inclusion; more women will become financially empowered and financially independent; government will become more directly involved in delivering basic financial services to the poor; and we will witness the emergence of new financial innovations that continuously reduce transaction costs. These future trends will have implications for financial inclusion in Asia, Europe and particularly in Africa where the level of financial inclusion is low. |
| Keywords: | Financial inclusion, digital finance, Fintech, access to finance, central bank digital currency, women. |
| JEL: | G21 I31 I38 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118800&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | Many countries are using digital tools and technologies to increase financial inclusion and improve the well-being of households and communities. There is growing interest in using only digital tools to increase financial inclusion. A term used to describe this is digital-only financial inclusion. This chapter identifies the benefits of digital-only financial inclusion. The benefits include convenience, ensuring digital access to additional financial services, generating useful data to improve customers’ welfare, increased safety, enabling the democratisation of financial services, improving social welfare and economic growth, reaching the poorest in remote areas, and increasing digital literacy. Policymakers and financial sectors agents should be aware of the benefits of digital-only financial inclusion while being mindful of the associated risks. |
| Keywords: | financial inclusion, digital financial inclusion, fintech, digital technology. |
| JEL: | G20 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118796&r=pay |
| By: | Belleflamme, Paul (Université catholique de Louvain, LIDAM/CORE, Belgium); Johnen, Johannes (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | Two-sided platforms have a great impact on markets nowadays. Especially, online marketplaces design markets and choose many of the rules that govern how buyers and sellers interact. Researchers studied two-sided platforms very actively over the last two decades. We review the economic literature from two angles: we focus on marketplaces and we concentrate on non-price strategies that marketplaces employ to govern interactions (like user steering, self-preferencing, rating and review systems, data and targeting, privacy, and user protection). |
| Keywords: | Two-Sided Platforms ; Marketplaces ; Platform Governance ; Platform Strategy ; Platform Regulation ; Platform Self-Regulation |
| Date: | 2023–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2023015&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper examines the role of central bank digital currency (CBDC) in achieving the United Nations sustainable development goals (SDGs). It was argued that a central bank digital currency can unlock financing for each of the sustainable development goals, provide suitable access to capital and increase payment efficiency. CBDC can also increase the speed of transaction chains and provide greater capital efficiency for investment in sustainable development activities and projects. |
| Keywords: | central bank digital currency, CBDC, sustainable development, sustainable development goals, United Nations, SDGs |
| JEL: | E52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118806&r=pay |
| By: | Ruimin Song; TIntian Zhao; Chunhui Zhou |
| Abstract: | This paper takes the development of China's Central bank digital currencies as a perspective, theoretically analyses the impact mechanism of the issuance and circulation of Central bank digital currencies on China's monetary policy and various variables of the money multiplier; at the same time, it selects the quarterly data from 2010 to 2022, and examines the impact of the Central bank digital currencies on the money supply multiplier through the establishment of the VECM model. The research results show that: the issuance of China's Central bank digital currencies will have an impact on the effectiveness of monetary policy and intermediary indicators; and have a certain positive impact on the narrow money multiplier and broad money multiplier. Based on theoretical analyses and empirical tests, this paper proposes that China should explore a more effective monetary policy in the context of Central bank digital currencies in the future on the premise of steadily promoting the development of Central bank digital currencies. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.07326&r=pay |
| By: | Koguchi, Teppei; Jitsuzumi, Toshiya |
| Abstract: | The current information platform is under the negative effects of the attention economies such as filter bubble, echo chamber and so on. These problems inhibit individuals from properly understanding information on the Internet and cause individuals to make incorrect decisions. Digital platforms and SNSs, the actors that control information on the Internet, are dealing with these issues on their own initiative, but have yet to reach a drastic solution. The 2021 United States Capitol attack, in which social networking sites were noted to have had a major impact, is fresh in our memories. Even if this is not such an extreme case, we are often deceived by fake news or exposed to biased information in our daily lives. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse23:277987&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | We analyse the popularity of the term ‘financial inclusion’ in relation to other development buzzwords. We extract trend data for multiple development buzzwords across countries and cities from 2004 to 2022 and we run a series of empirical analyses. We find that the ‘financial inclusion’ buzzword is popular because the term ‘financial inclusion’ is correlated with other development buzzwords particularly ‘microfinance’, ‘digital finance’, ‘inclusive finance’, ‘financial exclusion’ and ‘fintech’ buzzwords. Financial inclusion buzzword is more popular in developing countries than in developed countries. Financial inclusion buzzword is also popular in major cities in developing countries. We also observe that the financial inclusion buzzword was more popular during the second wave of the COVID-19 pandemic. There is uni-directional causality between interest in financial inclusion and interest in fintech and inclusive finance, indicating that interest in financial inclusion buzzword causes interest in fintech and inclusive finance buzzword. There is also uni-directional causality between interest in financial exclusion and interest in financial inclusion. Finally, there is a significant correlation between interest in the ‘financial inclusion’, ‘digital finance’, ‘inclusive finance’ and ‘fintech’ buzzwords. |
| Keywords: | buzzword, development, microfinance, financial inclusion, digital finance, fintech, inclusive finance, financial exclusion. |
| JEL: | I31 I38 I39 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118792&r=pay |
| By: | Tien Thao Cong Phan; Tri Quan Dang; Nguyen Thanh Luan |
| Abstract: | Although the mobile payment application is very popular and spread all over the world, however, in the increasingly competitive market economy, its market dominance has been affected. To achieve a sustainable competitive advantage, a model has been studied on the views of customer value, satisfaction and loyalty towards mobile payment applications. Based on data analysis of 303 app users, we found that usage intent is a key to driving customer satisfaction and loyalty for mobile payment apps. The findings show that perceived usefulness, perceived ease of use, social influence, quality of service and attitude towards using, thereby driving user intention to use for mobile payment applications. The study provides theoretical insights and practical implications for the field of mobile payment services. |
| Keywords: | Perceived Usefulness, Perceived Ease of Use, Social influence, Quality of service, Attitude Toward Using |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:279148&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This article explores the potential effect of central bank digital currency activity on bank loan loss provisions. We show that the effect of CBDC activity on bank loan loss provisions depends on the nature of CBDC activity and whether CBDC activity is regulated or non-regulated. As more people use CBDCs, it could lead to shortfall in bank deposits and increase funding and liquidity risk and generate a pass-through to credit risk which would require banks to increase loan loss provisions in anticipation of loan loss arising from CBDC activity. CBDC regulation may dampen this effect. |
| Keywords: | digital innovation, loan loss provision, central bank digital currency, bank |
| JEL: | E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118797&r=pay |
| By: | Michelle W. Bowman |
| Date: | 2023–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:97172&r=pay |
| By: | Kang’oro, Dorothy; Ngerero, Fidele; Odongo, Ignatius |
| Abstract: | The increasing digitalisation of African economies over the past decade, and the spread of mobile money and digital financial services (DFS), has given both opportunities and challenges to tax administrations in Africa. In theory, the use of digital technologies and expanded use of DFS can provide tax administrations with access to extensive new digitised data, increase transparency, and make the overall taxpayer experience easier. All this can ultimately improve the tax administration’s performance. However, studies show that tax administrations face important challenges in how to best develop their capacity to use digitised data, and to re-align operations and skills to new digitalised operating models. This paper is a policy-oriented qualitative study focusing on Togo. Like several African tax administrations, in 2014 the Office Togolais des Recettes (OTR) embarked on digital transformation. It invested in digital technologies, including e-Services such as Tmoney and Flooz, which were developed with telecom companies and banks. Our paper aims to provide more quantitative and qualitative evidence on enablers and inhibitors to adopting digital technologies and DFS, which will help African tax administrations to fully use their capabilities. We carried out inductive content analysis on qualitative data from key informant interviews and focus group discussions with key stakeholders. We also conducted online surveys of taxpayers from large and medium-sized enterprises. We triangulated the data from online surveys with data from the qualitative methodology to provide an objective analysis of the benefits of implementing digital technologies and DFS. We identified the independent variables and drivers that are critical to achieving OTR’s objectives for implementing digital technologies and DFS, and the dependent variables representing outcomes relating to OTR’s goals. Using survey data, we developed a regression model assessing the association between the drivers and outcomes, grouping them into key outcomes. |
| Keywords: | Finance, Technology, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18158&r=pay |
| By: | Tim Weingärtner (Lucerne University of Applied Sciences and Art); Fabian Fasser (Lucerne University of Applied Sciences and Art); Pedro Reis Sá da Costa (Lucerne University of Applied Sciences and Art); Walter Farkas (University of Zurich, ETH Zurich and Swiss Finance Institute) |
| Abstract: | Decentralized finance (DeFi) promises a revolution in financial accessibility, transparency, and automation. Yet, its very novelty exposes participants to a number of additional risks and challenges. This study aims to address the risks associated with DeFi, while also conducting a comparative analysis to those of classical/traditional finance (TradFi). After introducing DeFi and its defining characteristics, such as the use of smart contracts, blockchain technology, and decentralized governance, the paper outlines the principal risks associated with DeFi. Drawing insights from an extensive literature review of 200 recent articles, of which 50 were thoroughly analyzed, the study compares risks of DeFi and TradFi, categorizing these into systematic and unsystematic risks. Furthermore, we introduce the ‘risk wheel’, an innovative tool tailored to understand and navigate the subtleties of DeFi risks, finding potential applications in risk assessment, management, and even education. This paper’s primary objective is to provide a detailed and impartial examination of the risks associated with DeFi and their comparison to traditional finance in order to assist stakeholders in making informed decisions and mitigating possible losses. |
| Keywords: | decentralized finance, DeFi, risk management, literature review, risk classification, risk wheel. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2396&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper discusses how the eNaira central bank digital currency (CBDC) might be used to solve some economic problems in Nigeria. It presents the eNaira as a payment option, a monetary policy tool and a financial stability tool to solve some economic problems in Nigeria. I show that the eNaira can be instrumental in solving fiscal revenue challenges, controlling inflation, increasing foreign exchange accretion, managing exchange rate, addressing food insecurity, reducing financial stability risks, reducing poverty level, and recovering from a recession. The implication is that the eNaira can support the monetary, fiscal and regulatory authorities in preserving macroeconomic stability. However, a trade-off might arise among policy objectives if the eNaira cannot achieve multiple policy objectives at the same time. |
| Keywords: | eNaira, CBDC, central bank digital currency, fiscal revenue, inflation, foreign exchange, food insecurity, financial stability, poverty, Nigeria, blockchain, exchange rate, recession. |
| JEL: | E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118805&r=pay |
| By: | Daniel Muise; Nilam Ram; Thomas Robinson; Byron Reeves |
| Abstract: | Cataloguing specific URLs, posts, and applications with digital traces is the new best practice for measuring media use and content consumption. Despite the apparent accuracy that comes with greater granularity, however, digital traces may introduce additional ambiguity and new errors into the measurement of media use. In this note, we identify three new measurement challenges when using Digital Trace Data that were recently uncovered using a new measurement framework - Screenomics - that records media use at the granularity of individual screenshots obtained every few seconds as people interact with mobile devices. We label the considerations as follows: (1) entangling - the common measurement error introduced by proxying exposure to content by exposure to format; (2) flattening - aggregating unique segments of media interaction without incorporating temporal information, most commonly intraindividually and (3) bundling - summation of the durations of segments of media interaction, indiscriminate with respect to variations across media segments. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.00197&r=pay |
| By: | Ologunebi, John; Taiwo, Ebenezer |
| Abstract: | The rise of digital marketing has dramatically changed how brands promote themselves and engage with customers, as Chaffey and Ellis-Chadwick discussed in their 2019 research. This article thoroughly explores "Digital Marketing Strategies, Planning, and Implementation, " aiming to provide a comprehensive understanding of its multi-layered nature and profound impact. We start with a historical view, tracing digital marketing's evolution from humble beginnings to its current pivotal role in modern companies. We underscore how digital marketing is vital for connecting with tech-savvy consumers today, highlighting the latest trends Ryan outlined in 2016. Effective digital marketing depends on strategy, which we closely examine. Identifying target audiences and using customer journey mapping to devise compelling campaigns is critical. We also explore strategically selecting appropriate digital channels and integrating online and offline efforts to maximize reach and engagement. Creating a successful digital marketing plan requires meticulous planning. We walk through situational analysis, SWOT assessment, goal-setting, and aligning key performance indicators to gauge success. We also emphasize content strategy, social media, SEO, PPC ads, and email campaigns in shaping a cohesive plan. Next is implementation, where we explain executing each strategy after planning - creating and distributing engaging content, managing social campaigns, applying SEO tactics, administering PPC ads, and crafting persuasive emails. Real-time monitoring and analytics, as Chaffey and Bosomworth noted in 2015, provide insights into effectiveness. Evaluation through data-driven decisions is integral, focusing on key metrics and tools to assess campaign performance, per Chaffey and Patron in 2012. We also reveal iterative optimization tactics for continuous improvement. However, we acknowledge ethical challenges in digital marketing, like dynamic algorithms. We highlight common pitfalls to avoid errors and offer guidance on leveraging new technologies. Case studies provide real-world insights into implementing strategies. Looking ahead, we anticipate emerging trends like AI, automation, personalization, and enhanced customer experiences shaping digital marketing's future landscape. In conclusion, this article comprehensively explores modern marketing facets, equipping practitioners and researchers to navigate the evolving digital world. |
| Keywords: | Digital marketing strategies, content strategy, social media engagement, search engine optimization (SEO), pay-per-click (PPC) advertising, email marketing campaigns, social media marketing, SWOT analysis, KPI, modern marketing |
| JEL: | M30 M31 M37 M38 M39 O31 O32 O35 |
| Date: | 2023–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118771&r=pay |
| By: | Nico, Gianluigi; Azzarri, Carlo; Sufian, Farha D. |
| Abstract: | Rural Nigeria, with its diverse cultural and socio economic landscapes, presents unique challenges when it comes to digital inclusion. Traditional gender roles, limited educational opportunities, inadequate infrastructure, and sociocultural norms often combine to create barriers that disproportionately affect women’s access to digital technologies. As a result, women in rural areas face significant challenges in acquiring digital skills, accessing online information and services, and participating in digital platforms, thus perpetuating the gender gap and further marginalizing women from the benefits of the digital revolution. This policy note summarizes research designed to highlight the barriers female farmers in Nigeria face in accessing technology and information so that stakeholders can work together to ensure that Nigeria’s rural women are equipped with the necessary tools and resources to thrive in the digital age and contribute meaningfully to their communities. |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; women; technology; information needs; agricultural productivity; livelihoods; digital divide; women's empowerment; market access; gender |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gcanpn:16&r=pay |
| By: | Tran Thanh Tu; Nguyen Thi Hai Binh |
| Abstract: | In the ever-evolving realm of electronic commerce, the volatility of customer buying patterns, specifically impulsive purchases, has escalated. The objective of this study is to examine the integration of gamification strategies within online shopping applications, with the aim of enhancing user satisfaction and stimulating impulsive buying behavior in the online context. This study utilizes the Theory of Mind (ToM) and Stimulus-Organism-Response (SOR) framework in conjunction with Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the influence of gamification elements on impulsive buying behavior, as observed through individual cognitive reactions. By employing a judgemental sampling technique, the study successfully gathers 204 data points via an online survey. Subsequent data analysis confirms the validity of six out of the eight hypotheses, indicating that the impact of random rewards on impulsive purchasing is constrained. This highlights the necessity for e-commerce platform administrators to enhance their gamification strategies, while also indicating that Generation Z (GenZ) consumers might modify their buying behaviors accordingly. |
| Keywords: | gamification, Gen Z, impulsive buying, SOR framework |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:279147&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper examines the association between corporate governance and financial inclusion in terms of correlation and causation. It examines whether countries that have a strong corporate governance environment also have better financial inclusion outcomes. The indicators of financial inclusion are automated teller machines (ATMs) per 100, 000 adults, bank accounts per 1, 000 adults and bank branches per 100, 000 adults, while the indicators of corporate governance are extent of corporate transparency index, the extent of director liability index, the extent of disclosure index, the extent of ownership and control index, the extent of shareholder rights index, minority investors protection index and ease of shareholder suits index. The data were analyzed using Pearson correlation and granger causality tests. The results indicate that strong corporate governance is significantly correlated with better financial inclusion outcomes. The regional analyses show that corporate governance has a significant positive association with financial inclusion in Asian countries and in Middle East countries. However, a positive and negative association was observed between some indicators of corporate governance and financial inclusion in European countries, North American countries, South American countries, African countries and in Middle East and North Africa countries (MENA) countries, implying that strong corporate governance has a positive and negative association with financial inclusion depending on the indicators of corporate governance and financial inclusion used. There is also evidence of uni-directional granger causality between corporate governance and financial inclusion. |
| Keywords: | financial inclusion, corporate governance, financial institutions |
| JEL: | M12 M14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118799&r=pay |
| By: | Mariam Dundua (Financial and Supervisory Technology Development Department, National Bank of Georgia); Otar Gorgodze (Head of Financial and Supervisory Technologies Department, National Bank of Georgia) |
| Abstract: | The recent advances in Artificial Intelligence (AI), in particular, the development of reinforcement learning (RL) methods, are specifically suited for application to complex economic problems. We formulate a new approach looking for optimal monetary policy rules using RL. Analysis of AI generated monetary policy rules indicates that optimal policy rules exhibit significant nonlinearities. This could explain why simple monetary rules based on traditional linear modeling toolkits lack the robustness needed for practical application. The generated transition equations analysis allows us to estimate the neutral policy rate, which came out to be 6.5 percent. We discuss the potential combination of the method with state-of-the-art FinTech developments in digital finance like DeFi and CBDC and the feasibility of MonetaryTech approach to monetary policy. |
| Keywords: | Artificial Intelligence; Reinforcement Learning; Monetary policy |
| JEL: | C60 C61 C63 E17 C45 E52 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aez:wpaper:02/2022&r=pay |
| By: | Emanuele Citera; Francesco De Pretis |
| Abstract: | We study the stochastic structure of cryptocurrency rates of returns as compared to stock returns by focusing on the associated cross-sectional distributions. We build two datasets. The first comprises forty-six major cryptocurrencies, and the second includes all the companies listed in the S&P 500. We collect individual data from January 2017 until December 2022. We then apply the Quantal Response Statistical Equilibrium (QRSE) model to recover the cross-sectional frequency distribution of the daily returns of cryptocurrencies and S&P 500 companies. We study the stochastic structure of these two markets and the properties of investors' behavior over bear and bull trends. Finally, we compare the degree of informational efficiency of these two markets. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.04907&r=pay |
| By: | Barcs, Cristian; Pop, Izabela Luiza; Toader, Cezar; Ighian, Diana |
| Abstract: | Drop-shipping is a recently new, commonly used fulfilment method, especially in e-commerce sites. By applying dropshipping, many businesses and e-commerce sites have the possibility to reach a much greater customer base, as well as manage their business without holding, in most cases, any product as stock. This order fulfilment method has made possible the existence of drop-shipping as a business model, people from all over the world being able to sell items internationally, without ever seeing them. Also, the start-up cost for such a business is rather low, since there is no need for deposit means, a physical store, or even employees. However, the low barrier of entry this business model determines many people to try it, which is why the competition is very high. Even though the business looks easy, the low barrier of entry and the great competition means that only a small fraction of the new drop-shipping businesses get profitable. This paper will analyze what are the odds of turning such a business profitable while also looking at which are the pillars of drop shipping and most importantly, how the people who succeed are doing it. The proposed theoretical model is illustrated through a case study conducted at a dropshipping store that is selling back posture correctors. The results of the study are useful both, for practitioners and scholars interested in the topic of drop-shipping. |
| Keywords: | drop-shipping, e-commerce, business, management |
| JEL: | M21 M31 |
| Date: | 2022–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118638&r=pay |
| By: | Urbina, Maria José (World Bank); Moya, Andres (Universidad de los Andes); Rozo, Sandra V. (World Bank) |
| Abstract: | This study assesses if nudges in the form of informational videos sent via WhatsApp are effective in boosting take-up rates among vulnerable populations, specifically in the context of a regularization program for Venezuelan forced migrants in Colombia. The study randomly assigned 1, 375 eligible migrants to receive one of three informational videos or be in a control group. The videos aimed at solving issues related to awareness, trust, and bottlenecks in the step-by-step registration. The main results indicate that program take-up rates for individuals who received any video, were eight percentage points lower compared to the control group. The effects are mostly driven by the treated individuals who received the links but did not watch the videos, who are older, busier, and with less internet access relative to other treated individuals. Additionally, the study evaluates the effectiveness of iterative WhatsApp surveys in collecting data from hard-to-reach populations. It finds that iterative WhatsApp surveys had low retention rates, and iterative contacts do not helped to reduce attrition. |
| Keywords: | refugees, amnesties, program take-up |
| JEL: | D72 F02 F22 O15 R23 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16521&r=pay |
| By: | Zhou, Meihua; Angelopoulos, Spyros (Tilburg University, School of Economics and Management); Ou, Carol (Tilburg University, School of Economics and Management); Liu, Hongwei; Liang, Zhouyang |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:75d71155-88bf-4ff7-aba1-904ee18182eb&r=pay |
| By: | Nico, Gianluigi; Azzarri, Carlo; Sufian, Farha D. |
| Abstract: | Women farmers in Bangladesh face several challenges when it comes to accessing technology and information, and this limits their ability to improve their agricultural productivity and enhance their livelihoods. The gendered digital divide is a significant contributor to inequities in agriculture and has important implications for women’s empowerment. Lack of access to information affects their ability to make informed decisions, access markets, and secure their rights. This policy note summarizes research designed to identify the barriers female farmers in Bangladesh face in accessing technology and information so that future policies and initiatives can address these challenges and, in so doing, promote gender equality and the empowerment of rural women. |
| Keywords: | BANGLADESH; SOUTH ASIA; ASIA; women; technology; information needs; agricultural productivity; livelihoods; digital divide; women's empowerment; market access; gender |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gcanpn:15&r=pay |
| By: | Ozili, Peterson |
| Abstract: | The impact of financial inclusion on economic growth is a topic that is generating widespread interest among researchers and practitioners. We review the existing literature to highlight the state of research in the literature and identify new opportunities for innovative research. We used a thematic literature review methodology which involves dividing the review along relevant themes. We find that significant research on the topic emerged in the post-2016 years. Most of the existing studies are from developing countries and from the Asian and African regions. Existing studies have not utilized relevant theories in explaining the impact of financial inclusion on economic growth. Most studies report a positive impact of financial inclusion on economic growth while very few studies show a negative impact. The most common channel through which financial inclusion affects economic growth is through greater access to financial products and services offered by financial institutions that increases financial intermediation and translates to positive economic growth. The common empirical methodology used in the literature are causality tests, cointegration and regression methods. Multiple proxies of financial inclusion and economic growth were used in the literature which partly explains the conflicting result among existing studies. The review paper concludes by identifying some directions for future research. |
| Keywords: | financial inclusion, economic growth, literature review, access to finance, GDP, GDP per capita, causality tests, regression, cointegration, Africa, Europe, Asia, financial inclusion, index, theory. |
| JEL: | E30 E32 G21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118788&r=pay |
| By: | Raphael Auer; Giulio Cornelli; Christian Zimmermann |
| Abstract: | We present a ranking of journals geared toward measuring the policy relevance of research. We compute simple impact factors that count only citations made in central bank publications, such as their working paper series. Whereas this ranking confirms the policy relevance of the major general interest journals in the field of economics, the major finance journals fare less favourably. Journals specialising in monetary economics, international economics and financial intermediation feature highly, but surprisingly not those specialising in econometrics. The ranking is topped by the Brookings Papers on Economic Activity, followed by the Quarterly Journal of Economics and the Journal of Monetary Economics, the American Economic Journal: Macroeconomics, and the Journal of Political Economy. |
| Keywords: | central banks; citations; academic journals; ranking |
| JEL: | A11 E50 E58 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:97224&r=pay |
| By: | Philip N. Jefferson |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:97182&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper surveys the literature on economic research in banking. Two streams of empirical research were reviewed. The first stream of empirical research focus on research examining the effect of bank behaviour on economic performance. The second stream of empirical research focus on research on the effect of economic events on bank behaviour and performance. We provide our views about what we have learned from this research. |
| Keywords: | bank performance, economy, banks, economic research, financial institutions |
| JEL: | D00 E00 E50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118790&r=pay |