The non-linear impact of stokvel savings and banking sector development in South Africa
DOI:
https://doi.org/10.21580/al-arbah.2025.7.2.26598Abstract
Purpose - The study investigated the non-linear impact of stokvel savings and banking sector development in South Africa.
Method - The study applied the unit root break-even test, bounds F-test or cointegration and the nonlinear autoregressive distributed lag (NARDL) model for short- and long-run asymmetric impact with economic time series data ranging from 2009Q4 to 2020Q2.
Result - The results of the break-even unit root tests reveal that variables were found to be I(0) and I(1), thus confirming that variables that are I(2) were not present. The findings of NARDL bounds F-test cointegration that
there is a long-run relationship between banking sector size and the selected predictors. The short- and long-run multipliers portray adjustment to a new equilibrium after positive and negative shock.
Implication - The empirical results demonstrates that NARDL is not the best model to detect long-run relationship between banking sector size and its predic.
Originality - This study investigated the impact of stokvel savings and banking sector size in South Africa using the non-linear autoregressive distributed lag (NARDL) bound testing approach technique.
Keywords: Non-Linear Autoregressive Distributed Lag, stokvel savings, banking sector size, gross domestic product,
money supply, South Africa
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Copyright (c) 2025 Lindiwe Ngcobo
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