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The value of online banking to small and medium- sized enterprises: evidence from firms operating in the UAE free trade zones

Author

Listed:
  • Parvaneh Shahnoori

    (Department of Economics, Payame Noor University, Bandar Abbas, Iran)

  • Glenn P. Jenkins

    (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus)

Abstract

This study estimates the willingness to pay of small and medium-sized enterprises (SMEs) for a business online banking services. The estimation utilizes a contingent valuation method employing data from 400 SMEs in the United Arab Emirates free zones. An interval regression model is used to identify company characteristics affecting WTP. The results indicate an average WTP for online banking of $518.50 per month. Firms engaging in international trade value these services at least 10% more than those with only domestic operations. Other variables that significantly affect WTP include number of employees and the transportation cost of using traditional branch banking.

Suggested Citation

  • Parvaneh Shahnoori & Glenn P. Jenkins, 2019. "The value of online banking to small and medium- sized enterprises: evidence from firms operating in the UAE free trade zones," Development Discussion Papers 2019-14, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:4553
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    References listed on IDEAS

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    Cited by:

    1. Besar Ibrahim Mohammed, 2020. "E-Banking in United Arab Emirates: Understanding the Innovation and the Impact of Its Adoption," International Journal of Science and Business, IJSAB International, vol. 4(12), pages 62-68.
    2. Liangliang Zhou & Yishao Shi & Xiangyang Cao, 2019. "Evaluation of Land Intensive Use in Shanghai Pilot Free Trade Zone," Land, MDPI, vol. 8(6), pages 1-16, May.
    3. Soniya Falahatdoost & Xingping Wang, 2022. "Industrial Park Role as a Catalyst for Regional Development: Zooming on Middle East Countries," Land, MDPI, vol. 11(8), pages 1-18, August.
    4. Haoqiang Li & Jihong Chen & Zheng Wan & Huaxin Zhang & Maoxin Wang & Yun Bai, 2020. "Spatial evaluation of knowledge spillover benefits in China’s free trade zone provinces and cities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1158-1181, September.

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    More about this item

    Keywords

    Contingent Valuation Method; Interval Regression Model; Willingness to Pay; Business Online Banking;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • F10 - International Economics - - Trade - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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