EconPapers    
Economics at your fingertips  
 

The Impact of Informal Economy on the Interest Rate Pass-through: Evidence from an ARDL model

Chileshe M. Patrick and Olusegun Ayodele Akanabi

African Journal of Economic Review, 2017, vol. 05, issue 2

Abstract: In this study, we investigated the impact of the size of the informal economy on the interest rate pass-through. Results from an ARDL model showed that higher levels of the informal sector are associated with higher lending rates. Furthermore, the results indicated that the effect of the informal economy is much stronger in the long-run compared to the short-run. Finally, the results indicated that in both the short run and long run existence of an informal economy dampens the transmission of changes in the policy rate to retail rates as expected from theory and empirical evidence

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/264569/files/161698-418978-1-SM.pdf (application/pdf)
http://ageconsearch.umn.edu/record/264569/files/16 ... M.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:264569

DOI: 10.22004/ag.econ.264569

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-10-12
Handle: RePEc:ags:afjecr:264569