Dr Peterson K Ozili - Academia.edu (original) (raw)

Journal Articles by Dr Peterson K Ozili

This study examines what constitutes social in social finance. It addresses the lack of understan... more This study examines what constitutes social in social finance. It addresses the lack of understanding of the multifaceted ways in which social finance might be social. The common understanding is that social finance is only social in its use. This study challenges this narrow premise and argues that social finance can be social in its attributes both in its source, uses, infrastructure, policy and design. In other words, social finance can be social in (i) its source, (ii) its uses, (iii) the policy that enables social financing, (iv) the infrastructure used to facilitate social financing, and (iv) the nature or design of the contract that produces the financial instruments used to raise social funds. The implication is that social finance mechanisms can be designed to be social in several ways. Understanding the different ways in which social finance can be social will ensure that we do not dismiss emerging social finance innovations that are not social in their use, but are social in other aspects.

African Journal of Economic and Management Studies, 2024

The study investigates the impact of financial inclusion, financial stability, bank nonperforming... more The study investigates the impact of financial inclusion, financial stability, bank nonperforming loans, inflation, macroeconomic management quality and the unemployment rate on economic growth in Nigeria. The findings reveal that financial inclusion, inflation rate and macroeconomic management quality are significant determinants of economic growth in Nigeria. Bank nonperforming loans, unemployment rate, international
trade and climate change have an insignificant effect on economic growth in Nigeria. Also, financial inclusion, inflation rate, financial stability, macroeconomic management quality and the unemployment rate are significant determinants of economic growth in good economic years in Nigeria.

This article presents new theories of sustainable development. The need for new theories of susta... more This article presents new theories of sustainable development. The need for new theories of sustainable development arises from the need to explain the attitudes and various dispositions towards the sustainable development agenda. Five theories of sustainable development are presented, namely, the extinction avoidance theory of sustainable development, the collective stewardship theory of sustainable development, the rogue agent theory of sustainable development, the divine intervention and providence theory of sustainable development, and the resource-resilient world theory of sustainable development. These theories articulate the unspoken philosophy or paradigms regarding the need for sustainable development and who should be responsible for achieving sustainable development. These unspoken philosophy or paradigms have the power to move people to take action towards sustainable development or to do nothing about it, or to oppose the sustainable development agenda. Scholars, policy makers and researchers will find these theories useful in their work in sustainable development.

Economic Change and Restructuring, 2024

This article presents the concept of a natural rate of financial inclusion. It used a simple econ... more This article presents the concept of a natural rate of financial inclusion. It used a simple economic model to construct an index of the natural rate of financial inclusion (NRFI) and thereafter develops a global database for the NRFI. The constructed NRFI is sensitive to fluctuating economic conditions and to adverse economic shocks such as the global financial crisis and the COVID-19 pandemic. Euro Area and upper income countries recorded a high NRFI while Latin America and Caribbean, and Middle East and North Africa countries recorded a low NRFI. The actual level of financial inclusion exceeded the NRFI in the World and in Euro Area, high-income countries, Europe and Central Asia, East Asia and Pacific, North America, upper middle-income, and OECD member countries. In contrast, the NRFI exceeded the actual level of financial inclusion in lowincome countries, the Arab countries and in sub-Sahara Africa countries. GDP growth is a stronger determinant of the NRFI than the inflation rate and the unemployment rate. The findings are important to policymakers because the NRFI can guide policymakers in determining whether macroeconomic policies need to be altered to improve macroeconomic conditions and improve the natural rate of financial inclusion or whether explicit financial inclusion policies need to be introduced to increase the actual level of financial inclusion.

Journal of Internet and Digital Economics

This article analyses the trend in women digital financial inclusion in Nigeria using some digita... more This article analyses the trend in women digital financial inclusion in Nigeria using some digital financial inclusion indicators obtained from the global Findex database for the year 2014, 2017 and 2021. The study also analyses the relationship between women digital financial inclusion and economic growth using the two-stage least squares (2SLS) and generalised method of moments (GMM) regression estimation methods. The women digital financial inclusion indicators are the percentage of women who (1) own a mobile money account, (2) made a digital payment, (3) received digital payments, (4) made or received a digital payment, (5) own a credit card and (6) own a debit card. The trend analysis shows a sustained, although small, improvement in women mobile money account ownership during the period, while the other indicators witnessed a decrease in 2017 and an increase in 2021, except for women credit card ownership which remained at the same level during the period examined. There is a significant positive relationship between women digital financial inclusion and economic growth. Internet usage has a significant positive effect on women digital financial inclusion in Nigeria. The implication is that greater digital financial inclusion for women can accelerate economic growth in Nigeria. Policymakers should encourage investment in fintech and broaden access to the Internet to increase women digital financial inclusion and economic growth in Nigeria. Policymakers and practitioners in Nigeria should also work collaboratively to increase digital financial inclusion for women due to its potential to increase economic growth in Nigeria.

Modern Finance, 2024

The existing literature has not examined how elections affect bank non-performing loans and its d... more The existing literature has not examined how elections affect bank non-performing loans and its determinants even though banks are often the largest borrowers to fund election campaigns in many countries. This study investigates the determinants of bank non-performing loans (NPL) during election years in 35 developed countries. The fixed effect regression methodology was used to estimate the determinants of bank non-performing loans during election years. It was found that the banking sector experienced high NPLs during election years. Efficient banks operating in robust legal environments have higher non-performing loans during election years. It was also found that capital adequacy ratio, real GDP growth, loan-to-GDP ratio, cost-to-income ratio, political stability, and absence of terrorism are significant determinants of bank non-performing loans. The findings imply that election matters for the persistence of bank non-performing loans in developed countries.

The finternet is an emerging concept in global finance. The finternet is a term used to describe ... more The finternet is an emerging concept in global finance. The finternet is a term used to describe financial systems that are interconnected to one another like the internet. The finternet is a vision of the financial system of the future and Africa cannot be left behind in the race to transition to the finternet. But for this to happen, there is a need to understand what the finternet really is, what it means for Africa, the benefit for African countries, the mechanisms that exist today that will bring Africa closer to the finternet and the changes that need to be made today to prepare African countries for the finternet. This article explores the concept of the finternet, its definitions, benefits, and the strategies to help African countries transition to the financial system of the future which is the finternet.

This study examines the effect of foreign direct investment (FDI) inflows on economic growth in N... more This study examines the effect of foreign direct investment (FDI) inflows on economic growth in Nigeria from 2010 to 2019. Using the ordinary least square regression methodology, the findings reveal that foreign direct investment inflows do not have a significant effect on economic growth in Nigeria. The result holds when different measures of economic growth and different measures of foreign direct investment inflows are employed. Meanwhile, population size, real interest rate, domestic private credit and the inflation rate are significant determinants of economic growth in Nigeria while gross capital formation is an insignificant determinant of economic growth in Nigeria. The implication of the findings is that policy makers in Nigeria should focus on other drivers of economic growth other than foreign direct investment inflows when developing policy initiatives to stimulate economic growth in Nigeria.

Economic Notes, 2024

The literature has examined the relationship between financial inclusion and financial stability,... more The literature has examined the relationship between financial inclusion and financial stability, but no studies have examined the relationship between financial inclusion and financial crisis. This study examines the effect of financial inclusion on financial crisis using data from 28 countries from 2006 to 2017. Three stylised facts were established based on real world observation. One, the level of financial inclusion, in terms of number of bank depositors, decreases during domestic financial crisis. Two, the level of financial inclusion, in terms of ATM penetration, does not decrease during global and domestic financial crises. Three, the level of financial inclusion, in terms of number of bank branch, decreases during global and domestic financial crises and the contraction is stronger during a domestic financial crisis. Using the panel regression, logit and probit regression estimation methods, the empirical results show that low levels of financial inclusion, measured by fewer bank depositors and fewer bank branches, increase the likelihood that a financial crisis will occur. Low levels of financial inclusion, measured by fewer bank depositors, increase the likelihood that a financial crisis will occur in low financialinclusion countries. In contrast, greater ATM penetration increases the likelihood that a financial crisis will occur in low financial-inclusion countries. The interaction analyses show that all indices of financial inclusion have a joint positive impact on financial crisis, implying that high levels of financial inclusion increases the likelihood that a financial crisis will occur.

The objective of this study is to present a theoretical framework that explains the digital agenc... more The objective of this study is to present a theoretical framework that explains the digital agency at work in digital financial inclusion. The digital agency theory of financial inclusion examines the problems and solutions linked to delegating financial inclusion outcomes to a digital agent. The theory also examines the various kinds of incentives and monitoring arrangements that can be deployed by the financial inclusion principal to ensure that the digital agent achieve the specified financial inclusion outcome. The digital agency theory of financial inclusion states that the financial inclusion principal will employ the services of a digital agent who will use appropriate digital technologies to achieve the financial inclusion outcome specified by the financial inclusion principal under a contractual agreement that motivates the digital agent to act in the best interest of the financial inclusion principal. The theory has broad applicability for digital financial inclusion. This study contributes to the emerging theoretical literature on financial inclusion by presenting a digital agency perspective on how to accelerate digital financial inclusion using digital agents.

The purpose of this article is to explore the role of artificial intelligence, or AI, in a centra... more The purpose of this article is to explore the role of artificial intelligence, or AI, in a central bank digital currency project and its challenges. Artificial intelligence is transforming the digital finance landscape. Central bank digital currency is also transforming the nature of central bank money. This study also suggests some considerations which central banks should be aware of when deploying artificial intelligence in their central bank digital currency project. The study concludes by acknowledging that artificial intelligence will continue to evolve, and its role in developing a sustainable CBDC will expand. While AI will be useful in many CBDC projects, ethical concerns will emerge about the use AI in a CBDC project. When such concerns arise, central banks should be prepared to have open discussions about how they are using, or intend to use, AI in their CBDC projects.

The objective of this chapter is to discuss the role of financial inclusion in combating financi... more The objective of this chapter is to discuss the role of financial inclusion in combating
financial crime. It was found that financial crime is a challenge in society. Financial
crime is any action or omission that leads to unlawful or illegal financial dealings.
Many countries are seeking ways to combat financial crime. Many ideas have been
considered on how to combat financial crime. Financial inclusion is a possible solution
for combating financial crime. Financial inclusion involves granting access to basic
formal financial services to all segments of society. The author shows that financial
inclusion makes the work of investigators easier by leaving an audit trail whenever
financial crime is committed in the formal financial system. It helps investigators
to detect fraud or financial crime that has occurred in the formal financial system.

Circular economy and sustainability, 2024

This study empirically examines the effect of economic policy on sustainable development using an... more This study empirically examines the effect of economic policy on sustainable development using annual data for 22 countries from 2011 to 2018. The study also proffers some economic policy strategies for increasing the level of sustainable development. In the empirical analysis, a sustainable development index was constructed comprising of SDG proxy indicators: healthcare expenditures to GDP ratio (SDG3), percentage of people using safely managed drinking water services (SDG6) and the share of renewable energy to final total energy consumption (SDG7). The results show that the economic policy index has a significant positive effect on the sustainable development index particularly in non-European countries and in developing countries and a negative effect in European countries and developed countries. Changes in monetary policy, fiscal policy and regulatory policy have a significant impact on the level of sustainable development. Expansionary monetary policy via increase in broad money to GDP ratio increases the attainment of SDG6 while contractionary monetary policy via increase in central bank interest rate increases the attainment of SDG7. Expansionary fiscal policy via increase in consumer spending leads to the attainment of SDG3 and SDG7 but it adversely affects the attainment of SDG6. Effective regulatory policy via increase in institutional governance quality increases the attainment of SDG3 and SDG6. There is uni-directional causality between economic policy and sustainable development. Monetary policy and regulatory policy also have a uni-directional relationship with sustainable development, implying that changes in monetary and regulatory policies cause changes in the level of sustainable development. This study is the first to empirically examine the contribution of economic policy to sustainable development using composite indices.

Artificial intelligence is a branch of computer science that develop intelligent machines to perf... more Artificial intelligence is a branch of computer science that develop intelligent machines to perform human tasks. Recently, there is growing interest in AI applications in professions that have many processes that can be easily automated. There is widespread optimism that AI systems can lead to new innovations or improve existing processes. This study focuses on some applications of artificial intelligence in the accounting, finance, economics, business, and management profession. The study provides a basic understanding of how AI will be useful in the accounting, finance, economics, business and management professions. The study also offered some insights into the risks posed by the use of artificial intelligence.

Digital innovations are emerging to solve known problems using new digital tools or technologies.... more Digital innovations are emerging to solve known problems using new digital tools or technologies. Digital innovations also have wide application for financial inclusion. Private sector agents are using digital innovations to increase financial inclusion in remarkable ways. This chapter explores the recent digital innovations that are changing the financial inclusion landscape toward digital financial inclusion. The study used the discourse analysis methodology. It was found that digital innovations, such as central bank digital currency (CBDC), cryptocurrency, embedded finance, artificial intelligence, wallet as a service (WaaS), Fintech, Bigtech, and decentralized finance (DeFi), are helping to accelerate digital financial inclusion in many parts of the world. Each of these digital innovations serve a specific purpose, and they contribute to accelerating digital financial inclusion in unique ways, even though they all pose some risks that can be mitigated with careful and purposeful regulation.

This article presents a concise review of the existing financial inclusion research in India. We ... more This article presents a concise review of the existing financial inclusion research in India. We use a thematic literature review methodology. We show that the Reserve Bank of India (RBI) has been at the forefront of financial inclusion in India and has used collaborative efforts to deepen financial inclusion in India. The review of existing literature shows that the major determinants of financial inclusion in India are income, age, gender, education, employment, ICT, bank branch network and nearness to a bank. The common theories used to analyse financial inclusion in India are the finance-growth theory, the diffusion of innovations theory, development economics and modernization theory, the vulnerable group theory of financial inclusion and the dissatisfaction theory of financial inclusion. The common methodologies used in the literature are surveys, questionnaires, financial inclusion index, regression estimations and causality tests. Existing studies also show that financial inclusion in India affects the level of poverty, human development, financial stability, monetary policy, and income level. Some criticisms of the financial inclusion efforts in India include the inability to meet the specific needs of the poor, poor geographical access, excessive transaction cost, inappropriate banking products, financial illiteracy and a large digital divide between tech savvy and non-tech savvy people. We also suggest some areas for future research.

International Journal of Social Economics, 2024

The literature has not examined the factors leading to tight labor markets or unemployment in Wes... more The literature has not examined the factors leading to tight labor markets or unemployment in West African countries. We investigate the impact of private credit expansion and contraction on the unemployment rate in Economic Community of West African States (ECOWAS) countries. Credit expansion and contraction are measured using a three-level criterion. The fixed effect panel regression model was used to estimate the impact of private credit contraction and expansion on the unemployment rate in ECOWAS countries. Private credit contraction significantly increases the unemployment rate in ECOWAS countries. Private credit expansion does not have a significant effect on the unemployment rate. Real GDP growth has a significant negative effect on the unemployment rate which supports the prediction of the Okun's Law while the inflation rate has a positive and insignificant effect on the rate of unemployment in ECOWAS countries which contradicts the prediction of the Phillips curve. Policymakers in ECOWAS countries need to be cautious when introducing policies that lead to private credit contraction as it could increase unemployment. Policymakers in ECOWAS countries should also find the "threshold" below which private credit contraction will worsen the unemployment rate and introduce policy measures to ensure that private credit contraction does not fall below the threshold.

Purpose-This study aims to investigate the effect of CBDC issuance on economic growth rate and in... more Purpose-This study aims to investigate the effect of CBDC issuance on economic growth rate and inflation rate in Nigeria. We are interested in determining whether the rate of economic growth and inflation changed significantly after the issuance of a non-interest bearing CBDC in Nigeria. Design/methodology/approach-Two-stage least squares regression and granger causality test were used to analyze the data. Findings-Inflation significantly increased in the CBDC period, implying that CBDC issuance did not decrease the rate of inflation in Nigeria. Economic growth rate significantly increased in the CBDC period, implying that CBDC issuance improved economic growth in Nigeria. The financial sector, agricultural sector and manufacturing sector witnessed a much stronger contribution to gross domestic product (GDP) after CBDC issuance. There is one-way granger causality between CBDC issuance and monthly inflation, implying that CBDC issuance causes a significant change in monthly inflation in Nigeria. The implication of the result is that the non-interest bearing eNaira CBDC is not able to solve the twin economic problem of "controlling inflation which stifles economic growth" and "stimulating economic growth which leads to more inflation." Policy makers should therefore use the eNaira CBDC alongside other monetary policy tools at their disposal to control inflation while stimulating growth in the economy. Originality/value-There are no empirical studies on the effect of CBDC issuance on economic growth or inflation using real-world data. We add to the monetary economics literature by analyzing the effect of CBDC issuance on economic growth and inflation.

Blockchain Applications for Smart Contract Technologies, 2024

Several firms have expressed an interest to develop a stablecoin in Nigeria called the compliant-... more Several firms have expressed an interest to develop a stablecoin in Nigeria called the compliant-Nigerian-Naira (cNGN). The purpose of this article is to explore the features, benefits, and challenges of issuing a stablecoin in Nigeria known as the cNGN stablecoin. The study also compares the proposed cNGN with the eNaira central bank digital currency and offer several differences that are worth noting. The study shows that the proposed cNGN stablecoin offers many benefits. They include enabling faster payments, ensuring seamless cross-border payments, and increasing participation in the financial system for those who are already banked. The study also identifies some challenges of the proposed cNGN stablecoin. The study concludes by stating that the long-term success of the cNGN will be guaranteed if majority of Nigerians embrace it and if cNGN issuers collaborate with regulators to ensure that the cNGN is designed in a way that achieves financial stability objectives, transparency, and consumer protection.

Encyclopedia of Monetary Policy, Financial Markets and Banking, 2024

The literature has paid little attention to the uneven digital financial inclusion developments i... more The literature has paid little attention to the uneven digital financial inclusion developments in different regions of the world. There is a need for an overview of the existing digital financial inclusion research and developments around the world to gain insight into digital financial inclusion trends and to chart some directions for future research. This study presents an overview of digital financial inclusion research and developments around the world. It was shown that digital financial inclusion has a beneficial positive effect on wellbeing and society. There are uneven positive developments in digital financial inclusion across regions. The determinants of digital financial inclusion are varied according to regions. Every region is faced with a unique set of challenges that limit progress in digital financial inclusion. Key points • This study presents an overview of digital financial inclusion research and developments around the world. • Digital financial inclusion has a beneficial positive effect on wellbeing and society. • There are uneven positive developments in digital financial inclusion across regions. • The determinants of digital financial inclusion are varied according to regions. • Every region is faced with a unique set of challenges that limit progress in digital financial inclusion.

African Journal of Economic and Management Studies, 2024

Economic Change and Restructuring, 2024

Journal of Internet and Digital Economics

Modern Finance, 2024

Economic Notes, 2024

Circular economy and sustainability, 2024

International Journal of Social Economics, 2024

Blockchain Applications for Smart Contract Technologies, 2024

Encyclopedia of Monetary Policy, Financial Markets and Banking, 2024

Journal of money and business, May 23, 2024

AI & society, Mar 26, 2024

Journal of Central Banking Theory and Practice, Dec 31, 2023

African Journal of Economic and Management Studies, Dec 2, 2019

Social Science Research Network, 2021

Journal of Business, Economics and Finance, Jun 30, 2015

International Journal of Development Issues, Apr 13, 2020

Financial Internet Quarterly, Jun 1, 2021

Journal of Economic and Administrative Sciences, Oct 2, 2020

Social Science Research Network, 2015

Social Science Research Network, 2017

International Journal of Managerial Finance, May 11, 2018

Social Science Research Network, 2021

Emerald Publishing Limited eBooks, Jul 19, 2022

Social Science Research Network, 2021

Emerald Publishing Limited eBooks, Jul 18, 2022

Review of Accounting and Finance, May 8, 2017

Social Science Research Network, Jun 1, 2021

Basel III is a framework to preserve the stability of the international banking system. Nigeria a... more Basel III is a framework to preserve the stability of the international banking system. Nigeria adopts Basel capital framework for capital regulation in the banking sector. This article is a policy discussion on how to make Basel III work in Nigeria. The significance of Basel III is discussed, and some ideas to consider when implementing Basel III to make it work in Nigeria, are provided. Under Basel III, the Nigerian banking system should expect better capital quality, higher levels of capital, the imposition of minimum liquidity requirement for banks, reduced systemic risk, and a transitional arrangement for transitioning across Basel I and II. This article also emphasizes that (i) there should be enough time for the transition to Basel III in Nigeria, (ii) a combination of micro- and macro- prudential regulations is needed; and (iii) the need to repair the balance sheets of banks, in preparation for Basel III. The study recommends that the Nigerian regulator should enforce strict market discipline and ensure effective supervision under the Basel framework. There should be international cooperation between the domestic bank regulator and bank regulators in other countries. The regulator should have a contingency plan to reassure the public of the safety of their deposits, and there should be emergency liquidity solutions to support the financial system in bad times.

RePEc: Research Papers in Economics, Aug 11, 2018

International Journal of Ethics and Systems, 2022

Purpose-The purpose of this paper is to analyze Grameen America's response to COVID-19 pandemic. ... more Purpose-The purpose of this paper is to analyze Grameen America's response to COVID-19 pandemic. This is accomplished by identifying and analyzing the key initiatives implemented by Grameen America within the framework of selected United Nations' Sustainability Development Goals (UN's SD Goals). Design/methodology/approach-This study has used qualitative content analysis to analyze financial and nonfinancial information of Grameen Bank. Findings-This study follows a qualitative content analysis method to precisely gauge the shift in Grameen's strategy and focus, as well as to assess the impact of its initiatives on the small business community before and after the pandemic. The findings showcase that Grameen's longstanding mission to alleviate poverty is in line with the UN's SD Goal 1. Also, Grameen's commitment to create partnerships with external organizations to offer credit and noncredit services and support is consistent with UN's SD Goal 17. Research limitations/implications-Notwithstanding the significant contributions of this case study, the findings are limited in some respects. First, this case study focuses on the Grameen America's unique experience regarding its response to COVID-19 pandemic. This may affect the interpretation and generalization of the findings of this study. Performing comparative views across wide range of relevant microlending institutions could help improve the generalization of the findings. Also, this case study examines the impact on women and minority groups who were particularly affected by the pandemic. The results should, therefore, be interpreted with care as circumstances may change over time. Practical implications-The implication for practice is that policymakers should encourage the creation of more member-based financial and non-financial institutions that can help members integrate financially and socially into society. Also, practitioners should increase their ethical duties and responsibilities to their members in society in good and bad times as members tend to value the ethical aspect of financial businesses. Social implications-The social implication of the findings is that helping members of society to cope with the difficulties brought about by COVID increased the sense of belonging among members and made them feel cared for, thereby increasing financial and social inclusion among underserved people. Originality/value-Prior literature addressed the initiatives of microlending institutions such as Grameen Bank to achieve financial inclusion among financially vulnerable women. This case study contributes to the literature on financial inclusion and poverty alleviation by examining Grameen America's response to the pandemic by identifying and assessing Grameen America (GA's) key initiatives and their impact within the framework of the UN's SD Goals in the post COVID-19 world.