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Journal of Applied Financial Econometrics

Journal of Applied Financial Econometrics

Frequency :Bi-Annual

ISSN :2583-374X

Peer Reviewed Journal

Table of Content :-Journal of Applied Financial Econometrics, Vol:1, Issue:1, Year:2020

Business Cycles Fluctuations in Moroccan Macroeconomic Times Series

BY :   Aicha El Alaoui
Journal of Applied Financial Econometrics, Year:2020, Vol.1 (1), PP.1-15


This paper tries to describe the Moroccan business cycle sin both terms: classical and growth cycles, and to characterize its main  regularities.  The purpose  of  this study is  to analyse the importance of the magnitude of the observed macroeconomic times series changes in predicting fluctuations in the real GDP. The keyfindings are the low performance of the Moroccan economy has not explained by the private consumption and the investment as components of the domestic demand, but, namely, by the impacts of the public expenditure, the external demand shocks on exports,the external supply shocks on imports and the money supply.

Key words: Growth  cycle,  GDP  component,  Employment,monetary aggregates, GNDI, Saving, Morocco.

JEL Codes: E01, E32, E52


The Macroeconomic Impact of Remittances on Economic Growth in Nigeria: An Econometrics Analysis

BY :   Gisaor Vincent Iorja
Journal of Applied Financial Econometrics, Year:2020, Vol.1 (1), PP.17-31


Nigeria is reportedly the 7th biggest beneficiary of money remitted to the home country by her citizens living and working abroad. It was expected that the money would not only provide reliefs for the households in meeting their basic needs but would also facilitate the building of resources required for increased human capital through education, health care, increased physical and financial investments in residential real estate and starting up small businesses. On that basis, this paper examined the macroeconomic impact of remittance son economic growth in Nigeria between 1970 and 2019 using   Distributive Lag Model (ARDL) and other econometrics test. The result shows that remittances, foreign direct investment and private investment have positively influenced economic activities in Nigeria during the study period. As such, the Nigerian government was urged to formulate appropriate fiscal and one tary policies aimed at stabilizing these rates for improved economic activities in Nigeria and diversification of the Nigerian economy should give priority attention to manufacturing activities.All remittances accru able to the country should be applied to boost manufacturing. This would boost employment, revenue and GDP growth for a more sustainable development of the country.

Keywords: Macroeconomic, Impact, Remittances, Economic Growth, Nigeria.

JEL Classification: C5, C58 & D5


Crime and Economic Growth Nexus in Zimbabwe

BY :   Shame Mukoka
Journal of Applied Financial Econometrics, Year:2020, Vol.1 (1), PP.33-43


This study  sought to  determine the  causes  of  crime upsurge, despite having a positive economic growth in Zimbabwe.Yearly secondary data for the period 2008 to 2018 of armed robbery and economic growth were used. The study adopted mixed method research  approach, where sequential explanatory research design was used. Normality test was adopted using the Jarque-Berra Test Technique,  before the  Correlation Matrix  Test  Technique  was adopted to determine the association between the variables. The study revealed that association between armed robbery cases and economic growth in Zimbabwe is inverse. Basing on the quantitative research approach results, the study adopted qualitative research approach, where interviewing method were used to determine the causes of  armed robbery cases in Zimbabwe. The study found that having access to  dangerous  weapon access  to dangerous  drugs,unemployment, social economic inequalities, lack of self-control,inadequate support systems non-sound financial system contribute to the commission of armed robbery cases in Zimbabwe. The study recommended that Zimbabwe policy makers, revisit its community policing initiatives, by adopting the latest means of  technology to enhance policing of armed robbery cases. Advocating for stiffer penalties on crimes involving laws on possession and use of firearm sand other dangerous weapons, that a mandatory custodial sentences for breaching any legislation that governs the possession and use f firearms be introduced, continuous training on police officer son  new methods criminals  have  adopted in  the commission  of armed robbery cases and drug abuse. Ensuring that a sound financial system  exists  so  as to eliminate the existence  of  illegal  foreign currency dealing, thus enhancing target removal strategies.

Keywords:  Correlation,  Armed  Robbery,  Economic  Growth(GDP), Normality.


Factors Affecting Banks’ Profitability: Evidence from Sudan

BY :   Mai M. Abdo
Journal of Applied Financial Econometrics, Year:2020, Vol.1 (1), PP.45-53


The aim of this study is to investigate the determinants of  profitability of  banks operating in Sudan. The study use panel data regression analysis on 25 banks during the sample period from 2012 to 2017. The dependent variable is banks profitability measured by the net income of  banks, the independent variables are bank specific variables and macroeconomic variables. The bank specific variables are total deposits, and the investment, used as measures of   a  bank size.  The  inflation rate,  and the  GDP are  the macro variables. The findings reveal that the bank size and the investment variables are  positively and significantly  affecting  profitability of the banks. This result implies that larger banks are more profitable,than smaller size banks and investment activities affect their financial performance. The inflation factor is also significant but negative,the  GDP is  positive but insignificant. The  implication of   these results is that banks can improve their profitability by controlling their internal factor, that’s by attracting more deposits to avail more resources for investment and to improve their investment policies so  as  to  ensure the  selection  of  the  more  profitable investment opportunities, taking into consideration their credit risk.

Key Words: Determinants, profitability, banks, Sudan.


Banking Sectors Financial Performance and Economic Growth (1998-2018): The Case of Sudan

BY :   Osama Eltayeb Elfaki Osman
Journal of Applied Financial Econometrics, Year:2020, Vol.1 (1), PP.55-69


This study mainly aims to examine the impact of the banking sectors financial performance on the economic growth in Sudan. The study used the consolidated data for all Sudanese banks for the period from 1998 to 2018. Data were collected mainly from secondary sources such as reports of the Central Bank of Sudan and those of  Sudanese commercial  banks. In this study,  Gross Domestic  Product Growth  Rate was  applied as  a measure  of economic growth used as a dependent variable. Bank Return on Assets, Liquidity ratio, and Finance over deposits ratio were taken as representatives of banking sector financial performance and have been used as explanatory variables. The result of this study provided evidence that all the finance over deposits ratio (finance provision)has a positive (0.148427) influence on the Gross Domestic Product Growth Rate. The other explanatory variables have a negative impact on Gross Domestic Product Growth Rate, meaning that the banking sectors financial performance has a weak impact on the economic growth in Sudan. This study suggests that the concerned authorities should emphasise  the reform  of  the  banking sector  thereby accelerating economic growth. This study provides some noteworthy information to researchers, governments, financial analysts, banking policymakers, and supervisory authorities.

Keywords: economic growth; commercial banks; gross domestic product; return on assets; liquidity ratio; finance provision.



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