Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries

James Mageto Nyamweya; Duncan Elly Ochieng; Herick Ondigo; Peterson Obara Magutu

doi:doi:10.11648/j.ijfbr.20200604.11

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Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries

James Mageto Nyamweya, Duncan Elly Ochieng, Herick Ondigo, Peterson Obara Magutu

Published in International Journal of Finance and Banking Research (Volume 6, Issue 4)

Received: 27 May 2020 Accepted: 15 June 2020 Published: 23 July 2020

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Abstract

The study examined the mediating role of financial deepening on the relationship between economic growth and poverty levels in East African Community countries. The specific objectives included establishing the effect of economic growth on poverty levels in EAC countries and determining the meditating effect of financial deepening on the relationship between economic growth and poverty levels in EAC countries. The positivism philosophy was adopted throughout the study. The study adopted both comparative and descriptive research designs. The study population was the five countries of EAC countries which included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Annual data for 30 years beginning 1989 to 2018 was gathered for the study purpose. Secondary data, which consisted of annual data, was utilized in the study. The study employed normality, heteroscedasticity, multicollinearity, serial correlation and unit root diagnostic tests. The data was analyzed using both descriptive and inferential statistics with the help of excel and STATA version 14. Feasible Generalised Least Squares (FGLS) panel data regression model was adopted to ascertain the causal effect link between various variables relating to economic growth, financial deepening, and poverty levels in EAC member countries. The tests of hypotheses were examined at 95% confidence level. The study results revealed that economic growth had a significant effect on poverty levels in East African Community countries. The study also revealed that financial deepening has a significant mediating effect on the link between economic growth and poverty levels in East African Community countries.

Published in	International Journal of Finance and Banking Research (Volume 6, Issue 4)
DOI	10.11648/j.ijfbr.20200604.11
Page(s)	57-64
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Financial Deepening, Economic Growth, Economic Integration and Poverty Levels

References

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APA Style

James Mageto Nyamweya, Duncan Elly Ochieng, Herick Ondigo, Peterson Obara Magutu. (2020). Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. International Journal of Finance and Banking Research, 6(4), 57-64. https://doi.org/10.11648/j.ijfbr.20200604.11

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ACS Style

James Mageto Nyamweya; Duncan Elly Ochieng; Herick Ondigo; Peterson Obara Magutu. Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. Int. J. Finance Bank. Res. 2020, 6(4), 57-64. doi: 10.11648/j.ijfbr.20200604.11

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AMA Style

James Mageto Nyamweya, Duncan Elly Ochieng, Herick Ondigo, Peterson Obara Magutu. Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. Int J Finance Bank Res. 2020;6(4):57-64. doi: 10.11648/j.ijfbr.20200604.11

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@article{10.11648/j.ijfbr.20200604.11,
  author = {James Mageto Nyamweya and Duncan Elly Ochieng and Herick Ondigo and Peterson Obara Magutu},
  title = {Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {4},
  pages = {57-64},
  doi = {10.11648/j.ijfbr.20200604.11},
  url = {https://doi.org/10.11648/j.ijfbr.20200604.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200604.11},
  abstract = {The study examined the mediating role of financial deepening on the relationship between economic growth and poverty levels in East African Community countries. The specific objectives included establishing the effect of economic growth on poverty levels in EAC countries and determining the meditating effect of financial deepening on the relationship between economic growth and poverty levels in EAC countries. The positivism philosophy was adopted throughout the study. The study adopted both comparative and descriptive research designs. The study population was the five countries of EAC countries which included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Annual data for 30 years beginning 1989 to 2018 was gathered for the study purpose. Secondary data, which consisted of annual data, was utilized in the study. The study employed normality, heteroscedasticity, multicollinearity, serial correlation and unit root diagnostic tests. The data was analyzed using both descriptive and inferential statistics with the help of excel and STATA version 14. Feasible Generalised Least Squares (FGLS) panel data regression model was adopted to ascertain the causal effect link between various variables relating to economic growth, financial deepening, and poverty levels in EAC member countries. The tests of hypotheses were examined at 95% confidence level. The study results revealed that economic growth had a significant effect on poverty levels in East African Community countries. The study also revealed that financial deepening has a significant mediating effect on the link between economic growth and poverty levels in East African Community countries.},
 year = {2020}
}

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TY - JOUR
T1 - Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries
AU - James Mageto Nyamweya
AU - Duncan Elly Ochieng
AU - Herick Ondigo
AU - Peterson Obara Magutu
Y1 - 2020/07/23
PY - 2020
N1 - https://doi.org/10.11648/j.ijfbr.20200604.11
DO - 10.11648/j.ijfbr.20200604.11
T2 - International Journal of Finance and Banking Research
JF - International Journal of Finance and Banking Research
JO - International Journal of Finance and Banking Research
SP - 57
EP - 64
PB - Science Publishing Group
SN - 2472-2278
UR - https://doi.org/10.11648/j.ijfbr.20200604.11
AB - The study examined the mediating role of financial deepening on the relationship between economic growth and poverty levels in East African Community countries. The specific objectives included establishing the effect of economic growth on poverty levels in EAC countries and determining the meditating effect of financial deepening on the relationship between economic growth and poverty levels in EAC countries. The positivism philosophy was adopted throughout the study. The study adopted both comparative and descriptive research designs. The study population was the five countries of EAC countries which included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Annual data for 30 years beginning 1989 to 2018 was gathered for the study purpose. Secondary data, which consisted of annual data, was utilized in the study. The study employed normality, heteroscedasticity, multicollinearity, serial correlation and unit root diagnostic tests. The data was analyzed using both descriptive and inferential statistics with the help of excel and STATA version 14. Feasible Generalised Least Squares (FGLS) panel data regression model was adopted to ascertain the causal effect link between various variables relating to economic growth, financial deepening, and poverty levels in EAC member countries. The tests of hypotheses were examined at 95% confidence level. The study results revealed that economic growth had a significant effect on poverty levels in East African Community countries. The study also revealed that financial deepening has a significant mediating effect on the link between economic growth and poverty levels in East African Community countries.
VL - 6
IS - 4
ER -

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Author Information

James Mageto Nyamweya

Department of Finance and Accounting, Faculty of Business, University of Nairobi, Nairobi, Kenya
Duncan Elly Ochieng

Department of Finance and Accounting, Faculty of Business, University of Nairobi, Nairobi, Kenya
Herick Ondigo

Department of Finance and Accounting, Faculty of Business, University of Nairobi, Nairobi, Kenya
Peterson Obara Magutu

Department Management Science, Faculty of Business, University of Nairobi, Nairobi, Kenya

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APA Style

James Mageto Nyamweya, Duncan Elly Ochieng, Herick Ondigo, Peterson Obara Magutu. (2020). Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. International Journal of Finance and Banking Research, 6(4), 57-64. https://doi.org/10.11648/j.ijfbr.20200604.11

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ACS Style

James Mageto Nyamweya; Duncan Elly Ochieng; Herick Ondigo; Peterson Obara Magutu. Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. Int. J. Finance Bank. Res. 2020, 6(4), 57-64. doi: 10.11648/j.ijfbr.20200604.11

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AMA Style

James Mageto Nyamweya, Duncan Elly Ochieng, Herick Ondigo, Peterson Obara Magutu. Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries. Int J Finance Bank Res. 2020;6(4):57-64. doi: 10.11648/j.ijfbr.20200604.11

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@article{10.11648/j.ijfbr.20200604.11,
  author = {James Mageto Nyamweya and Duncan Elly Ochieng and Herick Ondigo and Peterson Obara Magutu},
  title = {Is There Any Mediating Effect of Financial Deepening on the Relationship Between Economic Growth and Poverty Levels in the EAC Countries},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {4},
  pages = {57-64},
  doi = {10.11648/j.ijfbr.20200604.11},
  url = {https://doi.org/10.11648/j.ijfbr.20200604.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200604.11},
  abstract = {The study examined the mediating role of financial deepening on the relationship between economic growth and poverty levels in East African Community countries. The specific objectives included establishing the effect of economic growth on poverty levels in EAC countries and determining the meditating effect of financial deepening on the relationship between economic growth and poverty levels in EAC countries. The positivism philosophy was adopted throughout the study. The study adopted both comparative and descriptive research designs. The study population was the five countries of EAC countries which included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Annual data for 30 years beginning 1989 to 2018 was gathered for the study purpose. Secondary data, which consisted of annual data, was utilized in the study. The study employed normality, heteroscedasticity, multicollinearity, serial correlation and unit root diagnostic tests. The data was analyzed using both descriptive and inferential statistics with the help of excel and STATA version 14. Feasible Generalised Least Squares (FGLS) panel data regression model was adopted to ascertain the causal effect link between various variables relating to economic growth, financial deepening, and poverty levels in EAC member countries. The tests of hypotheses were examined at 95% confidence level. The study results revealed that economic growth had a significant effect on poverty levels in East African Community countries. The study also revealed that financial deepening has a significant mediating effect on the link between economic growth and poverty levels in East African Community countries.},
 year = {2020}
}

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