The symmetric and asymmetric effect of remittances on financial development : evidence from South Africa

The policy of educational autonomy through legal entity state universities is a very interesting issue. Universities have the authority to manage finances and collect additional income, specifically generated income. Its successful implementation also provides more significant income to everyone in the institution through greater incentives, thereby helping to improve the economic conditions of staff, institutions, and all academics. This study examines the empirical evidence of factors influencing university income-generating performance. This study presents the direct and indirect effects of staff awareness, staff participation, and top management support on income-generating performance. This research used a quantitative approach utilizing the structural equation model with WarpPLS. A questionnaire-based survey collected 111 valid responses. Surveys were distributed to the appointed persons in charge of each unit, faculty, and university. The results show that staff awareness influences top management support. Top management support also affects income-generating performance, so it impacts the role of top management support, which can mediate the influence of managers' awareness on income-generating performance. On the other hand, staff participation cannot influence top management support and income-generating performance. This means that top management support cannot mediate the effect of staff participation on income-generating performance. Investigating the remittance-financial development relationship is an ongoing endeavor among economists and policy makers. Building and improving on the existing work, this study considers the possibility that the relation between remittances and financial development is potentially asymmetric. This study applies the linear ARDL and captures the possibility of an asymmetrical relationship by applying the non-linear Autoregressive Model (NARDL). Using NARDL, an attempt is made to estimate the short-run and long-run asymmetric responses of financial development through positive and negative partial sum decompositions of changes in remittances. To assess the robustness of the ARDL and NARDL estimates, a battery of long-run robustness tests were employed, including the linear and nonlinear versions of the fully modified ordinary least squares (FMOLS). Annual data series from 1980 to 2017, derived from the World Development Indicators, Fred Economic data and Penn World Tables were used for this study. The ARDL results reveal a positive and significant impact of remittances on financial development, whereas NARDL estimations suggest a both positive and negative shock of remittances on financial development in the long run: a percentage (%) increase in the remittances brings about 0.121568 percent increase in financial development, whereas a one-percent decrease in remittances produces a 0.33363 percent decrease in financial development.