International Journal of Business, Economics and Management

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Online ISSN: 2312-0916
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No. 1

Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa

Pages: 57-70
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Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa

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DOI: 10.18488/journal.62.2020.71.57.70

Prince Asare Vitenu-Sackey , Jiang Hongli

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Prince Asare Vitenu-Sackey , Jiang Hongli (2020). Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa. International Journal of Business, Economics and Management, 7(1): 57-70. DOI: 10.18488/journal.62.2020.71.57.70
The study delves into financial inclusion and poverty alleviation with emphasis on the contribution of the commercial banks in West Africa from the period of 2004 to 2015. To achieve the objective of the study. In a panel of 10 West African countries, the study aimed at assessing the dynamic relationship that exists between financial inclusion and poverty alleviation. In order to achieve this objective, the study utilized some panel data methodologies such as unit root tests and cointegration tests to unravel the characteristics of the variables whether they statistically fit for further regression. The study employed dynamic panel data methodology to analyze the data to make statistical inference. The study found out that financial inclusion has positive impact on poverty alleviation but taking into consideration the number of commercial banks, it was evidenced that it has negative impact on poverty alleviation whiles number of ATMs and total amount of loans granted are insignificant in poverty alleviation. Government effectiveness as in the quality of policy formulation, implementation and the credibility of the government’s commitment to such policies has positive impact on poverty alleviation but regulatory quality which is the ability of the government to formulate and implement sound policies and regulations for private sector development has negative impact on poverty alleviation. The study recommends that commercial banks should widen their scope of operation to reach out to the poverty-prone areas. Moreover, governments should create the enabling environment and formulate and also implement sound policies which can boost poverty alleviation.
Contribution/ Originality
This study contributes in the existing literature on financial inclusion but presents a dynamic methodology by assessing the dynamic relationship that exists between financial inclusion and poverty alleviation in the region of West Africa.

Trade Union Performance and Industrial Relations Climate in the Nigerian Petroleum Sector

Pages: 42-56
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Trade Union Performance and Industrial Relations Climate in the Nigerian Petroleum Sector

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DOI: 10.18488/journal.62.2020.71.42.56

Okoli Ifeanyi Emmanuel , Anugwu Clara Chika , Okolocha Chizoba Bonaventure

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Okoli Ifeanyi Emmanuel , Anugwu Clara Chika , Okolocha Chizoba Bonaventure (2020). Trade Union Performance and Industrial Relations Climate in the Nigerian Petroleum Sector. International Journal of Business, Economics and Management, 7(1): 42-56. DOI: 10.18488/journal.62.2020.71.42.56
This study explores the relationships between the variables of industrial relations climate as well as the performance of trade union in selected petroleum companies in Nigeria. The study adopted a cross-sectional research design. A total of 361 copies of the feedback forms were administered to the workers of the selected petroleum companies revealed on the Nigerian Stock Exchange, but a total of 350 copies of questionnaire were completed and appropriately returned. The study used correlation analysis along with T-test analysis for data analysis. In the first hypothesis, the correlation analysis reveal a significant positive relationship between integrative bargaining and the four magnitude of the industrial relations climate (harmony, openness, hostility in addition to apathy) in the Nigerian petroleum sector, while a negative relationship between integrative bargaining with promptness is present. In the second hypothesis, the correlation analysis shows that leadership behaviour has a significant positive relationship involving the dimensions of industrial relations climate (harmony, openness, hostility and apathy), while a negative relationship linking leadership behavior along with the promptness is present. The third hypothesis shows that harmony, openness, apathy and promptness have a positive control on the union density, while hostility has a negative influence on the union density. The study recommends that management should respect the rights of workers and employees and their unions should take note of employers' prerogatives. In the spirit of industrial harmony, social dialogue and collective bargaining must be supported by facts and figures to avoid adversarial and confrontations between unions and management.
Contribution/ Originality
This study contributes in the existing literature by examining the influence of the trade union performance on industrial relations climate in Nigerian petroleum sector. The paper’s primary contribution is to investigate the relationships between the variables of trade union performance and variables of industrial relations climate.

Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia

Pages: 27-41
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Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia

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DOI: 10.18488/journal.62.2020.71.27.41

M. Noor Salim , R. Pandji Ibnul Djausin

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M. Noor Salim , R. Pandji Ibnul Djausin (2020). Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia. International Journal of Business, Economics and Management, 7(1): 27-41. DOI: 10.18488/journal.62.2020.71.27.41
This study aims to examine and analyze the determinant of financial performance (return on assets), namely intellectual capital that consist of human capital, structural capital, capital employed and good corporate governance (GCG) that consist of board size and board of demography and its impact on the growth of Islamic banks assets in Indonesia for the period 2014 – 2018. Research data is annual report and GCG report of 12 Islamic banks in Indonesia for the period 2014-2018. The sampling method used was purposive sampling from 12 Islamic banks met the criteria to be the sample. The method of analysis used in this study is multiple linear regression. The results showed by model-1 that intellectual capital measured by human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE) and GCG measured by board size (BS) and board of demography (BD) simultaneously are having significant influence to the return on assets (ROA) of the banks. The results showed by model-2 that intellectual capital measured by human capital efficiency (HSE), structural capital efficiency (SCE) and capital employed efficiency (CEE) and GCG measured by board size (BS) and board of demography (BD) simultaneously are having non-significant influence to the assets growth (AG) of the banks.
Contribution/ Originality
This study contributes to the existing literature by examining and analyze the determinant of financial performance (return on assets), namely intellectual capital that consist of human capital, structural capital, capital employed and good corporate governance (GCG) that consist of board size and board of demography and its impact on the growth of Islamic banks assets in Indonesia for the period 2014 – 2018.

Analysing the Financial Strength of Nigeria: An Approach to Estimate the Index of Financial Safety

Pages: 14-26
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Analysing the Financial Strength of Nigeria: An Approach to Estimate the Index of Financial Safety

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DOI: 10.18488/journal.62.2020.71.14.26

Victor U. Oboh , Adegoke I. Adeleke , Grace G. Bikefe

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Victor U. Oboh , Adegoke I. Adeleke , Grace G. Bikefe (2020). Analysing the Financial Strength of Nigeria: An Approach to Estimate the Index of Financial Safety. International Journal of Business, Economics and Management, 7(1): 14-26. DOI: 10.18488/journal.62.2020.71.14.26
This study seeks to construct a financial safety index (FSI) for Nigeria. FSI is important for early detection of financial stress and ensures that the financial system is better positioned to reduce the likelihood of financial crisis and negative outcomes on real economic activities. It has capacity to guide policies that are likely to ensure the safety of financial system as well as those that are likely to distort the system. It also has ability of providing support for policy on external economic factors that can affect a country’s financial system. Hence, the developed index incorporates factors that have made significant impacts on Nigeria’s financial system in recent years. It is estimated using principal component analysis (PCA) and some major incidents of systemic pressure were identified from the constructed FSI. The constructed FSI was able to largely capture key macroeconomic trends and developments that shaped the financial industry within the study period. This confirms the relevance of the indicators selected for building the index and implies that the selected indicators played critical roles in the determination of Nigeria’s financial safety. Therefore, the index would assist both the fiscal and monetary policymakers in taking preventive measures against financial instability.
Contribution/ Originality
This study contributes to the existing literature by constructing a financial safety index (FSI) for Nigeria, based on major factors that have made significant impacts on the financial system in recent years. The study, therefore, tests previous theories with recent data and suitable methodology.

Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia

Pages: 1-13
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Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia

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DOI: 10.18488/journal.62.2020.71.1.13

M. Noor Salim , Darwati Susilastuti , Imas Wildan Rafiqah

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M. Noor Salim , Darwati Susilastuti , Imas Wildan Rafiqah (2020). Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia. International Journal of Business, Economics and Management, 7(1): 1-13. DOI: 10.18488/journal.62.2020.71.1.13
The purpose of this study was to determine (1) the simultaneous and partial influence of soybean price, consumption of tofu tempeh, the exchange rate of the rupiah against the US dollar, and interest rates factors on MSMEs income, (2) dominant factors on tofu tempeh MSMEs income and (3) the effect of tofu tempeh MSMEs income on the Province GRDP. This research is a quantitative study with a purposive method of determining research areas and a quarterly time series secondary data analysis method from 2009-2019 using OLS Multiple Regression. The analysis shows that all variables simultaneously have a significant effect on MSME income. Partially, the variables that have a significant positive effect on the income of tofu tempeh MSME are soybean prices, consumption of tofu tempeh and the exchange rate, while interest rates have a negative effect. The coefficient of determination of 96% with the magnitude of the determinant partially from the largest in the sequence is the consumption of tofu tempeh, soybean prices, exchange rates, and interest rates, there is no dominant factor. MSMEs income proxy with recursive income has a significant positive effect on Provincial GRDP with a determinant coefficient of 55%. The research findings are that MSMEs are resistant to fluctuations in exchange rates and contribute greatly to the GDRP.
Contribution/ Originality
The papers primary contribution is finding that MSMEs are resistant to macroeconomic determinants of fluctuations.