Credit to Private Sector, Corruption Perception and Economic Growth of Comesa Countries
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 07
Abstract
Credit to Sector private is known as financial resources given to the private sector, including loans and advances, non-equity securities purchases, trade credits, and other receivables, that establish a claim for recovery. In a variety of ways, financial institutions contribute significantly to people's socio-economic development. The relationship between economic growth and credit to private sector has attracted attention among scholars in the recent past who have articulated empirical and theoretical studies on the relationship between economic growth and credit to private sector. Corruption has been rampant among COMESA counties. This article incorporated the moderation effect of corruption in the private sector access to credit and found that, tough positive, corruption does not influence credit to private sector. This can be alluded to the fact that, any investor not necessarily bribe to get credit for the business. To improve credit access, the cost of credit must be reduced, the interest rate cap removed, and the collateral registry must be expedited. The insufficiency of credit expansion had a negative impact on economic growth in countries in COMESA trading bloc.
Authors and Affiliations
Kenneth Kibet, Josephat Cheboi, Thomas Agak
Keywords
Related Articles
- EP ID EP708818
- DOI 10.47191/jefms/v5-i7-07
- Views 78
- Downloads 0
The Entrepreneurial University Model and Policy Implications for University Governance in Vietnam Public Universities
Along with the advances of science and technology, higher education has had a substantial transformation towards autonomy associated with entrepreneurship, innovation, and creativity. Vietnam is facing the challenges of...
Digitalization, Culture, and Taxpayers’ Compliance in Nigeria
This study investigated digitalization, culture, and taxpayers' compliance in Nigeria as the literature shows a paucity of studies on the subject. The study was guided by the economic deterrence theory and benefits theor...
Your Business Network Depends on Your Business Analysis Ability
Indonesia is an agricultural country. The Central Bureau of Statistics recorded that the farming profession reached 9,749,093 people. Particularly in Tuban district, East Java, dominated by rice commodity farmers with a...
The Ageing Crisis Threatening Farming in Ethiopia: An Analysis of Youth Involvement in Agriculture
This study examined youth labor force participation in agriculture and factors impeding effective participation in Ethiopia using the 2011-2018 data from the Living Standards Measurement Survey-Integrated Survey of Agric...
Inflationary Effects, Exchange Rate and Economic Growth Rate in Kenya
Human civilization has always been centred on economic growth. Economic growth difficulties are the main focus of government policy and study in the modern, globalized world. Kenya's overarching goal is to become a middl...