Factors influencing the internet banking adoption decision in North Cyprus: an evidence from the partial least square approach of the structural equation modeling

Purpose:This paper aims to examine how the adoption decision of the internet banking in North Cyprus would be affected based on the following dimensions;the technology features,the personal characteristics,the social environment and the expected risk.Design/methodology/approach:A self-administered survey was conducted with 291 participants responded to it.The partial least square approach of the structural equation modeling(PLS-SEM)is employed to investigate the direct effects of the proposed factors on the adoption decision.Additionally,the mediation test is used to examine indirect effects.Findings:Results showed that even though the participants appreciated the benefits of the online banking as the perceived usefulness factor exerts the greatest direct effect,they would rather use clear and easy-to-use websites,adding to that their assessments of the usefulness of these services are significantly influenced by the surrounding people’s views and prior experience.This is demonstrated by the total effects of the perceived ease of use and the subjective norm factors,which are greater than the direct effect of the perceived usefulness factor since both of these factors have significant direct and indirect effects mediated by the perceived usefulness factor.The negative impact of the perceived risk factor is weak compared to the previous factors.While the personal innovativeness factor showed the weakest effect among the proposed factors.

Does financial depth impact economic growth in North Cyprus?

This study purpose is to connect the proxy of financial development which is total banking sector’s deposits with the economic growth in North Cyprus.The reason for using the total deposit differently with the existing literature is because North Cyprus is bank-based financial system.Therefore,this study provides an analysis of the connection between finance-growth nexus in North Cyprus from 1978 through 2015,using the autoregressive distributed lag(ARDL)model and combined cointegration to evaluate and verify the relationship.In addition,this research added the inflation rate to the model specification to investigate the inflation-growth interaction.The results revealed that both methods of cointegration provided robust evidence for a long-run relationship between financial debt and growth.The ARDL long-run and short-run coefficients showed the positive impact of depth and the negative impact of inflation on economic growth,thereby confirming the strength of the financegrowth and inflation-growth connections.Moreover,financial depth had a larger coefficient than the inflation rate.Finally,the VECM Granger causality test provided evidence for unidirectional causality from the total deposits and inflation rate to economic growth in North Cyprus.These results are significant for the policymakers of North Cyprus because the findings show that economic growth can be improved by enhancing the deposit rates in the financial system.