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Showing papers in "International Journal of Social Economics in 2018"


Journal ArticleDOI
TL;DR: In this paper, the authors analyse the level of financial literacy among youth in the world based on previous studies, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour.
Abstract: The purpose of this paper is to analyse the level of financial literacy among youth in the world based on previous studies. The study, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour. Strong endeavour of the world economies to improve the financial well-being of their citizens has contributed to the rising importance of financial literacy as it equips the individuals to take quality financial decisions to enhance their financial well-being.,This literature review consists of seven key sections. The first section of this paper reviews the conceptual definitions of youth. Second part summarises the literature on financial literacy. Third, fourth and fifth section summarises the literature on the components of financial literacy, i.e. financial knowledge, financial attitude and financial behaviour, respectively. Sixth section reviews the empirical studies on the influence of socio-economic and demographic factors on financial literacy level. Seventh section summarises the literature on interrelationship between financial knowledge, financial attitude and financial behaviour.,The study reveals that the financial literacy level among youth is low across the most part of the world that has become a cause of concern. Also, it has been observed that various socio-economic and demographic factors such as age, gender, income, marital status and educational attainment influence the financial literacy level of youth and there exists an interrelationship between financial knowledge, financial attitude and financial behaviour.,Youth have to live a longer life ahead, thus, the decisions taken by them are going to affect them for a longer period of time, making it imperative for them to develop an understanding of the world of finance so as to avoid wrong choice of financial products. Thus, financial literacy is of significant relevance. This paper aims to understand the influence of various factors influencing the financial literacy as understanding the factors that contribute to or detract from the acquisition of financial literacy among youth can help in making policy interventions targeted at youth to enhance their financial well-being.

128 citations


Journal ArticleDOI
TL;DR: In this article, the authors provided a framework for maqasid-oriented waqf-based development plan followed by provision of some critical recommendations on how the global awqaf can potentially spearhead the initiative of Islamic charities in realising the maqsidoriented SDGs among muslim majority countries.
Abstract: This paper attempts to contextualise the potential role of waqf (plural; awqaf, Islamic perpetual trust) in the contemporary world, particularly, in the developmental arena. The purpose of this paper is to provide a framework for awqaf to maintain its convergence with some of the fundamental goals of the SDGs which are also congruent with the maqasid al-shariah (the higher objectives of shariah).,This paper is based on a desk-based research, and it adopts the qualitative research paradigm for the analysis of the available literature.,This paper finds that most of the 17 developmental goals of the SDGs comfortably match with the long-term objectives of shariah and there is good scope for the stakeholders of awqaf to develop waqf-based development plan in line with the framework of SDGs. Additionally, it finds that the global awqaf enjoy sufficient financial capacity to help muslim majority countries to realise some of the most relevant and urgent maqasid-oriented SDGs in a timely manner.,The scope of this paper is limited to analyse the potential role of global awqaf in realising some of the most urgent maqasid-based development objectives in congruence with SDGs. For the purpose of maintaining the coherence in the focus of the study, this paper does not undertake any comparison between the waqf and other forms of endowments/charities in fulfilling the similar objectives.,This paper provides a framework for maqasid-oriented waqf-based development plan followed by provision of some critical recommendations on how the global awqaf can potentially spearhead the initiative of Islamic charities in realising the maqasid-oriented SDGs among muslim majority countries.,This paper adds original value to the available literature on the potential of waqf in the arena of development. The paper analyses the role of waqf in achieving the most urgent maqasid-based SDGs, and thus, it fills the existing gap of a systematic research on the possible collaboration of global awqaf and SDGs.

84 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of financial inclusion on poverty alleviation through cooperative banks and found that access to basic financial services such as savings, loans, insurance, credit, etc., through financial inclusion has generated a positive impact on the lives of the poor and help them to come out of the clutches of poverty.
Abstract: The purpose of this paper is to examine the impact of financial inclusion on poverty alleviation through cooperative banks.,In order to fulfil the objectives of the study, primary data were collected from 540 beneficiaries of cooperative banks operating in three northern states of India, i.e., J&K, Himachal Pradesh (HP) and Punjab using purposive sampling during July-December 2015. The technique of factor analysis had been used for summarisation of the total data into minimum factors. For checking the validity and reliability of the data, the second-order CFA was performed. Statistical techniques like one-way ANOVA, t-test and SEM were used for data analysis.,The study results reveal that financial inclusion through cooperative banks has a direct and significant impact on poverty alleviation. The study highlights that access to basic financial services such as savings, loans, insurance, credit, etc., through financial inclusion has generated a positive impact on the lives of the poor and help them to come out of the clutches of poverty.,The study was conducted amidst few limitations. First, the in-depth analysis of the study is restricted to three northern states only because of limited resources and time availability. Second, the study is limited to the perception of financial inclusion beneficiaries only, which, in future, could be carried further on the perception of other stakeholders such as bank officials, business correspondents, village panchayats, etc.,The study makes contribution towards the financial inclusion literature relating to poverty alleviation and fulfils the research gap to some extent by assessing the impact of financial inclusion on poverty alleviation through cooperative banks. This paper can help the policymakers and other stakeholders of cooperative banks in promoting banking habits among poor rural households both at the national and international level.

60 citations


Journal ArticleDOI
TL;DR: In this article, a study aimed to examine the concepts of m-banking customer experiences and flow and their role in affecting customer intention in the continued use of mbanking.
Abstract: Purpose Mobile banking or m-banking enables consumers to carry out their banking affairs with the help of mobile devices. Mobile-user banking interactions in the context of technology services create opportunities for positive experiences that can nurture trust, foster brand equity and eventually lead to long term relationship building. This study aimed to examine the concepts of m-banking customer experiences and flow and their role in affecting customer intention in the continued use of m-banking. Design/methodology/approach To achieve this main objective, a research model was developed by taking theoretical backgrounds and specific characteristics of m-banking into consideration for testing. The study to test this model was carried out in Iran, a developing country in the Middle East. Findings Results of the PLS-SEM analysis of 927 bank customers showed that the flow experience is positively influenced by both hedonic and utilitarian features. While, flow experiences influence trust and brand equity, i...

58 citations


Journal ArticleDOI
TL;DR: In this paper, the authors identify factors relevant for financial inclusion and establish a model that shows how these factors lead to economic development (ED) through FI; primary data were collected through structured questionnaire.
Abstract: The purpose of this paper is to identify factors relevant for financial inclusion (FI) and establish a model that shows how these factors lead to economic development (ED) through FI.,Primary data were collected through structured questionnaire. Out of 350, 311 respondents accurately filled the questionnaire. The data were collected from rural areas of Tamil Nadu. Exploratory factor analysis has been applied to evaluate drivers/factors relevant for FI. Confirmatory factor analysis has been applied to establish reliability and validity of the identified factors. A structural model has been proposed and empirically tested for ED through FI.,The main findings of the current paper are as follows: online banking (OB), understanding banking services (UBS) and financial literacy (FL) are the drivers of FI; FI can lead to ED, as the proposed model of ED, through FI, is supported in the paper (χ2/degree of freedom and CMIN/degree of freedom are less than 3; GFI and AGFI are more than 0.90 and 0.85, respectively). Behavior of the people, with respect to mode of financial transactions, has changed due to demonetization. (The χ2 test for mode of financial transaction is significant).,The geographical reach of the sample should cover the whole India. The sample should also have equal representation from rural and urban areas.,The identified factors for FI (OB, UBS and FL) should be more focused to bring about better results for FI in India. These factors can lead to a more effective execution of FI initiatives. In addition to this, policy makers can be confident of relying upon FI as a tool for ED.,The identified three drivers for FI have not been explored earlier. In addition to this, ED (through FI) in the form of structural model has also not been tested earlier. Government of India can realign their policies toward FI by using findings of this paper. In addition to increasing the access of formal financial system to masses, more thrust can be given to OB and FL for better results of FI in India.

56 citations


Journal ArticleDOI
TL;DR: In this paper, the authors have evaluated the series of development plans and programs initiated for the empowerment of women entrepreneurship in India, based on the concepts, policies and practices being implemented across the regions to promote women entrepreneurs.
Abstract: The spirit of entrepreneurship among nationals of a country leads and contributes significantly to the growth process of a country. In this drive, there cannot be gender biases among men and women. The government in India has taken several initiatives to increase the participation of women entrepreneurs and, thus, making a partner to the growth and development process of the country. The initiatives in this direction were taken up through five-year development policy plans commencing from the fifth five-year plan (1974-1978). The focus of five-year plans since then has been reoriented toward women welfare stressing more specifically on women empowerment through women entrepreneurship programs. The purpose of this paper is to appraise the series of development plans and programs initiated for the empowerment of women entrepreneurship in India.,The paper is developed based on the concepts, policies and practices being implemented across the regions to promote women entrepreneurs. The methodology adopted to assess and analyze the relevant components very much matches the existing practices. The paper relates the concepts, programs and practices. This study has revealed certain issues based on the available data and information on women entrepreneurship to establish a view and rational as of why research is needed in the area of women entrepreneurship. To support this concept, the study has considered the experiences of two important states of India, namely, Uttar Pradesh and Uttarakhand.,The study reveals that Government of India has launched several policies and development programs to infuse the spirit of entrepreneurship among the women groups and thereby not only making them financially self-sustained but also to contribute to the growth process of the economy. However, there remain many gaps in achieving the goals due to the variety of factors. This becomes more significant as the level of women entrepreneurship in India is very low as compared to other economies and also between the men and women entrepreneurs within the country. The study brings out the need and importance for the future research in the area of women entrepreneurship and thereby exploring the areas of concern and bringing out needed improvements to strengthen the women entrepreneurship programs and policies.,This research provides a future direction to the academicians, researchers and policymakers to provide a framework to reorient the programs and policies for the cause of women entrepreneurship growth in India. The paper very much emphasis that the research findings will have influence on government policies and serve as an effective tool for implementation of state programs meant for woman entrepreneurs more effectively and efficiently. The ultimate impact of research findings will be an economic change in the quality of life of woman enterprise in the society.

48 citations


Journal ArticleDOI
TL;DR: In this paper, the influence of religiosity, gender and Islamic educational background of Muslims on zakat compliance was examined using a self-administered questionnaire that was distributed to working Muslims individuals in Klang Valley, Malaysia.
Abstract: The purpose of this paper is to examine the influence of religiosity, gender and Islamic educational background of Muslims on zakat compliance. It also aims to identify which dimensions of religiosity are significantly related to zakat compliance.,The study uses a self-administered questionnaire that was distributed to working Muslims individuals in Klang Valley, Malaysia. Analysis of the data was based on 690 usable questionnaires.,The findings show that religiosity had a significant influence on zakat compliance and three dimensions of religiosity, namely obligation, virtues and vices, and optional ritual, were significantly related to zakat compliance. Gender was also significantly related to zakat compliance, but in a negative direction, suggesting that Muslim working females are less compliant to zakat obligations compared to their male counterparts. It is found that formal Islamic educational background had no significant influence on zakat compliance.,Given the importance of zakat collection to the growth of the economy and society, the findings of this paper might provide some insights to Muslim-majority countries and zakat institutions which areas require more attention to encourage zakat payment among Muslims.,Compared to prior zakat studies, the findings of this study were derived from a larger sample size of Muslim working respondents. Furthermore, this study also identifies which dimensions of religiosity are significantly related to zakat compliance. Hence this study enriches the scarce literature on zakat and religiosity.

45 citations


Journal ArticleDOI
TL;DR: In this article, the correlations between mobile and inclusive development in 93 developing countries for the year 2011 were examined by examining the correlations of mobile usage with quality of growth, poverty and inequality.
Abstract: Purpose We respond to some challenges in the transition to Sustainable Development Goals by examining the correlations between mobile and inclusive development (quality of growth, poverty and inequality) in 93 developing countries for the year 2011. Design/methodology/approach Mobile money service entails: ‘mobile used to pay bills’ and ‘mobile used to receive/send money’. Interactive Ordinary Least Squares are employed. Findings The following findings are established. First increasing use of the mobile phones to pay bills: is positively linked to ‘quality of growth’ in lower-middle income countries (LMIC) and negatively correlated with inequality in Latin American countries (LA). Second, growing use of mobile phones to send/receive money is negatively associated with poverty in Asia and Pacific (AP) and Central and Eastern Europe (CEE). Originality/value Macroeconomic data on mobile money service is scarce. No study to the best of our knowledge has used this macroeconomic mobile money service data before.

43 citations


Journal ArticleDOI
TL;DR: In this paper, the effect of financial development and foreign direct investment (FDI) on economic growth in Sudan has been examined using time series data from 1970 to 2014, and the results show that financial development is more beneficial to economic growth than FDI.
Abstract: The effect of foreign direct investment (FDI) on economic growth is widely believed to be contingent on the development of the financial sector. Nevertheless, as the possibility that the effect of financial development on growth being contingent on FDI has been neglected in existing literature, the authors have investigated it in this paper. In general, the purpose of this paper is to examine the effect of financial development and FDI on economic growth in Sudan using annual data from 1970 to 2014.,Since most of the macroeconomic variables are subject to unit root problem, the time series data are assessed using unit root and cointegration tests with/without structural break. Moreover, the study uses the fully modified ordinary least squares and the dynamic ordinary least squares techniques to estimate the long-run model.,The results of the cointegration tests provide evidence that a long-run relationship exists among variables even after accounting for the structural break. The results show that financial development and FDI are positive and significant in explaining economic growth in Sudan. Financial development is found to be more beneficial to economic growth than FDI. Moreover, the findings reveal that FDI leads to better economic performance through financial development. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI.,The government should focus on promoting FDI in more productive sectors. In addition, further cooperation with multinational enterprises is needed to increase FDI in the country.,This is the first paper that empirically examines both the interlinked impact of FDI on growth through financial development and the impact of financial development on economic growth through FDI in Sudan using appropriate econometric methods.

35 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigate how the use of mobile money technology among students affects their spending behavior and conclude that mobile money can increase the spending behavior of students and reduce the tendency of savings.
Abstract: The purpose of this paper is to investigate how the use of the mobile money technology among students affects their spending behaviour.,The study reports interesting findings by using a random sample of 506 students from the University of Ghana and applying ordinary least squares regression technique.,The findings suggest that active use of mobile money services has significant influence on students spending behaviour. On a monthly basis, students who use mobile money spend on the average 20 Ghana Cedis more than their colleagues who do not use mobile money. Students who use both mobile money and ATMs jointly spend nearly 13 Ghana Cedis more than their counterparts who use either of them.,The implication of this finding is that mobile money technology which provides easy access to money can increase spending behaviour of students and reduce the tendency of savings. The authors therefore conclude that although technological growth should not be curtailed given the numerous benefits technology accrues to society, its use must be controlled, in particular, when it comes to using it as a medium of exchange so as to minimize the negative influences (such as indiscriminate spending).,This paper studies the post-adoption behavioural responses of mobile money users particularly among students in Africa which is rare in the literature.

27 citations


Journal ArticleDOI
TL;DR: In this paper, a review of the available literature to assess the role of CPEC in the sustainable economic development of Pakistan is presented, which indicates that CPEC is an ambitious development project because it needs a larger restructuring of the economy of Pakistan and it will be productive with the successful blend of policy changes and participation of the business community.
Abstract: The purpose of this paper is to discuss positive spillovers of this project, especially for Pakistan because the majority of the literature discusses challenges associated with China-Pakistan Economic Corridor (CPEC).,This study reviews the available literature to assess the role of CPEC in the sustainable economic development of Pakistan.,This study indicates that CPEC is an ambitious development project because it needs a larger restructuring of the economy of Pakistan and it will be productive with the successful blend of policy changes and participation of the business community in Pakistan. This project primarily creates a huge amount of foreign direct investment for Pakistan, at the same time, it will also create greater trade opportunities to China by giving access to a new market for its trading goods.,This study established that CPEC will improve the economic growth and trade, enhance regional connectivity, overcome energy crises, develop infrastructure and establish people-to-people contacts in both the countries, which will further help to improve the tourism sector.

Journal ArticleDOI
Abstract: Purpose The purpose of this paper is to examine the gender disparity in financial literacy among retirees in the Cape Coast metropolis in Ghana. Design/methodology/approach Finding of this paper is based on 334 respondents (183 males and 151 females) to financial literacy questionnaires covering the respondents’ general knowledge on budgeting, use of Automated Teller Machine (ATM), time value of money, account types, cheque handling and insurance. Data was analysed with Pearson Chi-Square and Independent sample t-test. Findings Nominal scores showed male domination in financial literacy in seven out of the ten questions used to assess financial literacy while female retirees lead in three. These observed nominal differences were, however, found not to be significant through Chi-square test of independence except the question on the calculation of interest rate on loans in favour of males. The cumulative effect, through computation of financial literacy index was deemed to be significantly different betwee...

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the relationship between remittances and poverty through the human capital channel in developing countries, which has received less attention in the literature, and found that, while remittance reduced poverty, the effect is moderated via education.
Abstract: The purpose of this paper is to analyze the relationship between remittances and poverty through the human capital channel in developing countries, which has received less attention in the literature.,The paper applied the system GMM developed by Arellano and Bond (1991) and Arellano and Bover (1995) containing 54 developing countries. This estimator is appropriate compared to a cross-section technique because it controls for the endogeneity of all explanatory variables, includes unobserved country-specific effects and allows for the inclusion of lagged dependent variables.,The results suggest that, while remittances reduced poverty, the effect is moderated via education. A 1 percent increase in remittances reduces the poverty headcount by 0.47 percent, while the reduction is 0.33 percent via education. The marginal effect of remittances is negatively related to the level of education, indicating that education mitigates the effect of remittances on poverty.,This paper includes the implications for the policymakers to justify the need for more effective approaches. It is useful to identify whether and how remittances and human capital interact in their effect on poverty when deciding the most desirable allocation of available resources between these two priorities.,This paper takes a step forward filling the limited evidence on the role of human capital in remittances–poverty relationship in developing countries. Different from the existing studies which have used the traditional panel estimators, this study utilizes the dynamic panel estimators such as system GMM to tackle the specification issues of endogeneity, measurement errors and heterogeneity.

Journal ArticleDOI
TL;DR: In this paper, the authors used a survey of 556 respondents across five microcredit providers in the city of Surabaya using an updated instrument, and found that microfinance may not matter for microenterprise performance in the case of Indonesia.
Abstract: The purpose of this paper is to address the small, women micro-entrepreneur dominated and heterogeneity limitations of the Atmadja et al. (2016) study. The sample is much larger, includes more men and is more heterogeneous, which allows deeper insights and more meaningful explanation of the relationship between microfinance and microenterprise performance in the case of Indonesia, including the effects of gender, lending scheme and money separation.,This study used a survey of 556 respondents across five microcredit providers in the city of Surabaya using an updated instrument. Ordered probit is used to analyse data.,Microfinance may not matter for microenterprise performance in the case of Indonesia. Additionally, microcredit schemes (individual vs group) and gender may also not matter for performance, but money separation might have some influence.,Non-financial factors such as human capital, spousal involvement, and money separation should be considered as important factors for improving microenterprise business performance in Indonesia, with less focus on microcredit per se.,This study provides further evidence that microfinance may not matter for microenterprise performance in the case of Indonesia, a populous middle income country with a very long history of microfinance.

Journal ArticleDOI
TL;DR: The results show that the assurance of financial security, friendliness and the application of Islamic principles in their operations are the most important attributes to be considered when people choose an Islamic bank.
Abstract: The purpose of this paper is to investigate the degree to which the different attributes of Islamic banks in Indonesia are preferred by the community.,This paper uses a quantitative approach by applying Rasch analysis to measure the relative importance of 18 attributes of Islamic banks to the community. The data were collected by questionnaires, which were distributed online and completed by 345 respondents. In addition to the Rasch model, the preference of attributes was measured by a statistical inference test, using “SPSS” software, which employs binary logic regression related to the agreement between the performance of attributes and expectations.,The instrument used in this study showed good reliability, and its validity fits the expected model. The results show that the assurance of financial security, friendliness and the application of Islamic principles in their operations are the most important attributes to be considered when people choose an Islamic bank. The degree of importance placed by the community on the various attributes of Islamic banks will have an effect upon the actual and perceived quality of those attributes. An increase in the community’s preference for a particular attribute will eventually be followed by an increased agreement between the actual performance of that attribute and the community’s expectation.,The varied profiles of individual respondents were not explored fully: this research relies solely on quantitative analysis. So, there is no empirical information to inform the Islamic banks as to which segments of the community should be the focus of their promotional activities.,The use of Rasch analysis to measure the community’s preference for various attributes of Islamic banks has not been done previously.

Journal ArticleDOI
TL;DR: In this article, the authors used time series data of USA over the period from 1965 to 2016, and applied autoregressive distributed lag approach to identify the effect of poverty on crime.
Abstract: Economic hardship and crime is always a debatable issue in the political economy literature. Some authors define poverty leads to crime some are completely opposite. The purpose of this paper is to find out the impact of poverty on crime in the USA.,Using time series data of USA over the period from 1965 to 2016, this study applies autoregressive distributed lag approach to identify the effect of poverty on crime.,The outcomes confirm a positive co-integrating relationship between poverty and property crime. It can be argued that poverty ultimately leads property crime in long run in the USA. However, unemployment and GDP exhibit neither long-run nor short-run relationship with property crime and they are not cointegrated for the calculated period.,The subject of this paper helps to explain and analyze the nexus between poverty and crime in the USA.,Government and policymakers should focus more on poverty rather than unemployment alone to control property crime.,This study attempts to identify the consequences of economic hardship and poverty on the crime in the advanced economy like USA.

Journal ArticleDOI
TL;DR: In this article, a cross-sectional study was conducted in a rural setting of north-eastern Bangladesh, where primary data were collected from 310 households, and multivariate binary logistic regression model was applied to measure the association between social capital dimensions and poverty.
Abstract: Social capital accrues to numerous positive socioeconomic outcomes, especially poverty reduction in developing countries. The purpose of this paper is to examine the relationship between social capital and poverty reduction with special reference to Bangladesh.,A cross-sectional study was conducted in a rural setting of north-eastern Bangladesh, where primary data were collected from 310 households. Exploratory factor analysis was pursued to extract multiple dimensions of social capital. Afterward, multivariate binary logistic regression model was applied to measure the association between social capital dimensions and poverty. In this model, odds ratios were used to present the regression coefficients.,The study confirms that social network, norms of reciprocity, social trust and civic participation were associated with poverty. The logistic regression reveals that social trust, social networks, norms of reciprocity and civic participation are negatively associated with poverty by OR=0.488, 95% CI=0.377–0.633; OR=0.709, 95% CI=0.542–0.927; OR=0.619, 95% CI=0.473–0.812; and OR=0.783, 95% CI=0.598–1.025 units.,This study has a significant policy implication related to reducing entrenched poverty in Bangladesh as social capital has a potential to bring about a concomitant improvement in the condition of the poor.

Journal ArticleDOI
TL;DR: In this article, the authors assess determinants of returns to male and female entrepreneurship in Ghana, Kenya and Uganda at selected quantiles along the distribution, as well as examine gender gaps in returns to entrepreneurship and factors contributing these gaps.
Abstract: The purpose of this paper is to assess determinants of returns to male and female entrepreneurship in Ghana, Kenya and Uganda at selected quantiles along the distribution, as well as examine gender gaps in returns to entrepreneurship and factors contributing these gaps.,Employing a unique data set collected in the three countries on entrepreneurial motivations, constraints and performance, the authors apply unconditional quantile regression technique to assess the determinants of returns to entrepreneurship at various quantiles along the distribution. Additionally, the authors employ decomposition techniques to assess gender gaps in returns to entrepreneurship at various points along the distribution. The data contain extensive information on entrepreneur’s personal characteristics, including parental background and household composition and structure.,The study finds substantial differences in determinants of returns to male and female entrepreneurship along the distribution, with firm asset increasing returns to entrepreneurship. There is also the presence of gender gaps in returns to entrepreneurship at the lower-end of distribution, however, gaps disappear at the upper tail of the distribution, indicative of sticky floors in returns to entrepreneurship in Ghana, Kenya and Uganda. The authors also find gender bias against female entrepreneurship in the three countries, as unobserved characteristics largely responsible for the gender gaps in entrepreneurial returns.,This work has been undertaken by the authors and has not been carried out by any other person. The study will add to the existing literature on gender and returns to entrepreneurship.

Journal ArticleDOI
TL;DR: In this paper, the authors have analyzed farmers' access to credit and its adequacy in the light of current agricultural credit policy of Pakistan and found that the amount of credit provided to subsistence farmers was less than stated in the national agricultural credit scheme.
Abstract: Purpose The Government of Pakistan has allocated a substantial proportion of agricultural credit to subsistence farmers. The purpose of this paper is to analyze farmers’ access to credit and its adequacy in the light of current agricultural credit policy of Pakistan. Design/methodology/approach The study has used both secondary and primary data for analysis. Secondary data were collected from the annual reports of Pakistan Economic Survey and State Bank of Pakistan. Primary data were collected from 168 subsistence farmers through households’ survey. Farmers’ credit access and credit adequacy were measured using credit access ratio and credit adequacy ratio, respectively. The Student’s t-test and analysis of variance were used to assess the differences in credit access and adequacy among farmers’ groups (i.e. upper, medium and lower subsistence farmers). Tobit regression model was employed to determine the factors influencing credit adequacy among farmers. Findings The empirical results revealed that the amount of credit provided to subsistence farmers was less than stated in the national agricultural credit policy. Upper subsistence farmers had more access to credit than lower and medium subsistence farmers. Lower subsistence farmers had above average access to informal sources of credit, and had below average access to formal sources. The findings also revealed that lower subsistence and medium subsistence farmers had the highest credit inadequacy of funds for investment in agriculture. The results of the Tobit regression revealed that age, education, experience, household size, total landholding of farmer and proportion of own land influenced the agricultural credit adequacy. Practical implications Most of the credit was distributed among the upper subsistence farmers. Lower subsistence farmers were still largely dependent on informal credit for farm production activities. The Government of Pakistan performed poor in the implementation of agricultural credit policy, and has failed to help subsistence farmers in their access to formal credit. It is needed to revamp the agricultural credit policy and facilitate credit acquisition by subsistence farmers, particularly for tenant farmers. It is important that the Government may classify the subsistence farmers into subgroups, and reallocate the funds accordingly. This study has lessons and implications for agricultural finance initiatives in developing countries. Originality/value Previous studies have focused primarily on access to agricultural credit. However, this study has adopted a holistic approach by using secondary and primary data to assess the farmers’ access to credit and adequacy. In addition, limited literature is available to explore the farmers’ accessibility and adequacy of agricultural credit. Furthermore, this study has focused exclusively on the farmers who are living in the flood-prone areas of Pakistan.

Journal ArticleDOI
TL;DR: In this paper, the adoption of proven innovative practices in bean farming and their impacts on livelihoods requires persistent promotion of practices, complemented by rigorous socioeconomic analysis that recognises the diversity of smallholder farmers.
Abstract: Purpose Improving the adoption rates of proven innovative practices in bean farming and their impacts on livelihoods requires persistent promotion of practices, complemented by rigorous socioeconomic analysis that recognises the diversity of smallholder farmers. The purpose of this paper is to typify farm households in Angonia district of Mozambique, based on their socioeconomic characteristics prompting the adoption of proven innovative practices in bean production, management, and marketing. Design/methodology/approach We use a multivariate statistical analysis approach that combines principal component analysis, and cluster analysis to clearly identify five distinctive farm household types with respect to the adoption of proven innovative practices in smallholder bean farming using socio-economic factors. Findings The study findings, show that various socioeconomic factors define clusters and can be associated with the adoption and use of innovative practices in smallholder bean farming. The five farm ...

Journal ArticleDOI
TL;DR: In this paper, a cross-country empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index, and the results indicate that a rising share of inward FDI in gross domestic product (GDP) increased wage inequality in transition economies, though its overall effect was relatively small.
Abstract: The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in globalisation is one major factor explaining this increasing wage inequality. International trade and FDI have increased significantly since the beginning of transition and the purpose of this paper is to focus on whether FDI plays an important role in explaining the pattern of wage inequality in selected transition countries.,A cross-country empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index. Several model specifications and estimation strategies have been employed to obtain consistent estimates and to check for the robustness of the results.,The results indicate that a rising share of inward FDI in gross domestic product (GDP) increased wage inequality in transition economies, though its overall effect was relatively small. Considering the long run, there is no clear evidence of a concave relationship between FDI and wage inequality, which may be a consequence of the relatively low levels of FDI in many transition countries.,Inwards FDI has made a small contribution to increasing wage inequality in European transition economies. However, its overall beneficial effects on labour markets in these countries suggest that rather than restricting FDI governments should target increasing the supply of skilled labour.,This new empirical evidence supports the hypothesis that an increased inward FDI stock as a share of GDP increases wage inequality in transition economies, however, this relationship is a complex one. Differences in average wages, wage differentials, employment shares of skilled workers and relative size of the foreign-owned sector are all likely to be important for the behaviour of wage inequality.

Journal ArticleDOI
TL;DR: In this article, the authors identify the critical success factors for sustainable growth of the Indian banking sector and develop a model for Indian banks by using interpretive structural modelling (ISM) approach to bring down the complexity of relationship among factors.
Abstract: The purpose of this paper is to identify the critical success factors for sustainable growth of the Indian banking sector and develop a model for Indian banks by using interpretive structural modelling (ISM). It suggests some of the critical measures of sustainability for Indian banks.,This paper aims to establish a relationship among the factors of sustainable banking through the opinion of experts from the banking sector. ISM approach is applied to bring down the complexity of relationship among factors. ISM ranked the factors as per their ability to facilitate and dependence on other factors and helps to develop a comprehensive, systematic model based on the relationship amongst those factors. After developing the model, second reviews by the experts are conducted for their comments and thus, the final model comes into existence.,Legal and environmental compliance is determined as the key factor which is driving the other factors of sustainable banking. It will surely going to pose a challenge for business concerns for initiating various sustainable steps that will be a motivational factor for generating business opportunities and sustainable collaboration.,The study provides a comprehensive framework of sustainable banking which can be applied to various Indian banks. It helps to develop coherence between conventional and sustainable dimensions of banking.,The ISM is applied for the first time in case of sustainability in the banking sector to bring about a model for sustainable banking in India.

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TL;DR: In this article, the authors analyzed the impact of taxes on economic growth in the long run as well as in the short run using simple time series model, where real GDP is dependent variable and different forms of taxes are explanatory variables under ARDL framework.
Abstract: Purpose The purpose of this paper is to analyze the impact of taxes on economic growth in the long run as well as in the short run. Design/methodology/approach The study uses simple time series model, where real GDP is dependent variable and different forms of taxes are explanatory variables under ARDL framework from 1976 to 2014 at annual frequency for Pakistan. Findings Direct taxes have positive relation with economic growth in the long run. Sales tax, tax on international trade (tariffs) and other indirect taxes have positive impact on economic growth of Pakistan in the long run as well as in the short run. However, sales tax and other indirect taxes impact negatively on economic growth in the short run after one year because people realize decline in their real income. Practical implications Government should increase direct taxes by increasing tax base. Indirect taxes usually indicate negative impact after one and two years; therefore, government should decrease its reliance on indirect taxes. Government should promote tax awareness among the people which increase the tax morale of people and increase the tax base. Originality/value Taxes are disaggregated into direct and indirect taxes, while indirect taxes have been further disaggregated into excise duty, sales tax, surcharges, tax on international trade and other indirect taxes. This study provides useful insight for policy makers in designing taxes and their effect on growth.

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TL;DR: In this paper, the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda was established. But, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time.
Abstract: The purpose of this paper is to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda.,The current study used cross-sectional research design and a semi-structured questionnaire was used to collect data for this study. The study applied structural equation modeling through bootstrap approach in AMOS to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion.,The results indicated that social capital significantly mediates the relationship between financial intermediation and financial inclusion in rural Uganda. Therefore, it can be deduced that social capital among the poor play an important role in promoting financial intermediation for improved financial inclusion in rural Uganda.,Although the sample was large, it may not be generalized to other segments of the population. Data were collected from only poor households located in rural Uganda. Besides, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time. Perhaps future studies could adopt the use of longitudinal research design.,Financial institutions such as banks should rely on social capital as a substitute for physical collateral in order to promote financial inclusion, especially among the poor in rural Uganda.,This study provides empirical evidence on phenomenon not studied in rural areas in Sub-Saharan Africa where the poor use social capital embedded in customs and norms for doing business. The results highlight the importance of social capital in mediating the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.

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TL;DR: In this paper, the authors define individual social capital from an economic perspective and propose a measurement based on two dimensions of social capital that bring economic value to individuals, i.e. informal risk insurance arrangements and information advantages arising from personal social networks.
Abstract: Empirical studies on the importance of social capital for poor households show divergent outcomes. This divergence may stem from the lack of a conceptual framework for capturing the social capital dimensions that deliver economic value to individuals. The purpose of this paper is to define individual social capital from an economic perspective and propose a measurement based on two dimensions of individual social capital that bring economic value to individuals, i.e. informal risk insurance arrangements and information advantages arising from personal social networks.,The authors first provide a concrete definition of individual social capital and identifying social capital dimensions that are important from an economic perspective (i.e. dimensions that bring economic value to the individual). Next, the authors develop a new conceptual framework around this definition and propose a social capital measurement. Finally, the authors apply this measurement numerically to demonstrate that differences in the network configurations between individuals lead to asymmetry of social interactions between these individuals.,The authors show that the exchange of resources between two individuals is affected by their individual network configurations. In particular, the authors show that differing network configurations drive asymmetrical social interaction between individuals.,The approach may be especially relevant for understanding of the persistence of poverty and inequality in developing economies. These economies are characterized by environments in which imperfect information, underdeveloped or non-existent formal institutions and limited contract enforcement abound and where social capital may therefore be important to facilitate economic transactions. In particular, the authors see clear applications of the approach in better understanding and improving the use of microfinance programs.

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TL;DR: In this paper, the authors measured and tracked the evolution of market concentration and competition in the microfinance industry in Bangladesh by employing both the structural and non-structural measurement techniques.
Abstract: Purpose The purpose of this paper is to measure and track the evolution of market concentration and competition in the microfinance industry in Bangladesh by employing both the structural and non-structural measurement techniques. Design/methodology/approach By using a unique panel data set generated from the microcredit regulatory authority (MRA) annual reports, the sample includes 169 microfinance institutions (MFIs) and covers the period 2009-2014. The authors employed the Herfindahl-Hirschman index (HHI) and concentration ratio (CR) (largest 3, 8 and 20 MFIs) as structural measurement techniques and the Lerner index as a non-structural measurement technique. In addition, four different market indicators are used as representatives of deposit and credit markets to better explain the evolution of market concentration. Findings The results of HHI indicate that the sector is moderately concentrated and currently transitioning to an unconcentrated market. However, based on CR, the industry is still dominated by a few large MFIs. The Lerner index (non-structural approach) also confirmed that the level of competition is relatively high and likely to follow an inverted U-shape during the study period. Practical implications The findings of this study will enhance our understanding of the market structure in the Bangladesh’s microfinance industry so as to inform important policy prescriptions. The results also provide impetus to the relatively young MRA to nurture competition in the market; simultaneously, the findings prompt management of the MFIs to cope with a competitive market environment. Originality/value This study is one of the first of its kind that includes a large data sample of microfinance market for a single country by employing both structural and non-structural measurement approaches.

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TL;DR: In this paper, the extent and magnitude of indebtedness among rural households in the Medak district of Telangana state was examined by applying the Bayesian and the Lasso regression methods to identify the factors that impact indebtedness of a household.
Abstract: According to the 70th round of the National Sample Survey published by the Government of India in 2014, the incidence of indebtedness among households in the rural areas of Telangana state, India, is twice that of rural all-India. Around 59 per cent of rural households are indebted in Telangana as against 31 per cent all-India. The purpose of this paper is to examine the extent and magnitude of indebtedness among rural households in the Medak district of Telangana state. Further, the authors wanted to identify the sources of credit to these households and for what purpose the loans were utilised.,To achieve the objective, the authors conducted a primary-level household survey in one of the distressed districts in newly formed state. The authors applied the Bayesian and the Lasso regression methods to identify the factors that impact indebtedness of a household.,The OLS results based on the Lasso regression results show that among all the explanatory variables, principal occupation, use of modern technology, the rate of interest, household medical expenditure and source of loan are significant, indicating that these variables significantly affect the loan taken by the farmers in the study area. The study shows that alternative sources of non-farm income and promotion of modern technology in agriculture can reduce the incidence of farmers’ indebtedness in India.,The paper contains significant information with regard to indebtedness. It focusses on the issue troubling the authorities the most. It provides the ground realities of the incidence of indebtedness in Medak, one of the most distressed districts of Telangana, a Southern Indian state. There have been very few similar studies done in the newly formed state. The paper has employed an advanced statistical technique, i.e. Heckman’s selection regression technique, to study farmers’ indebtedness in India. It provides a means of correcting for non-randomly selected samples, which otherwise can lead to erroneous conclusions and poor policy.

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TL;DR: In this paper, the authors investigate teenagers' preferences, attitudes, and purchasing power towards organic foods in markets and to explain influences of teenagers' choices and purchasing intentions on organic foods, and find that teen consumers were likely to buy ready-to-cook organic food items instead of conventional food items because of health and food safety concerned under their budget constraints.
Abstract: Purpose The purpose of this paper is to investigate teenagers’ preferences, attitudes, and purchasing power towards organic foods in markets and to explain influences of teenagers’ choices and purchasing intentions on organic foods. Design/methodology/approach A paper-based and a web-based survey were conducted among 557 teenagers in Thailand. A choice experiment logit model was used to identify factors influencing decision in purchasing. Findings The study found that teen consumers were likely to buy ready-to-cook organic food items instead of conventional food items because of health and food safety concerned under their budget constraints. The willingness to pay found organic food items (eggs, pork, chicken) had negative impact but organic opinion had positive impact. The attitudes on high price of organic food items were positive impact because of production process, quality, and quantity of products. Research limitations/implications Teenagers’ consumption impacted on food demands in supermarkets and convenient stores because of their attitudes and behaviours in purchasing. The desired food characteristics should be good quality, safety for consumers, and available in the market nationwide. The supported policies for expanding organic markets were benefits for organic farmers to be sustainable farming. Originality/value This study examined the impacts of economic conditions and the premium quality healthy food products on teenagers’ food motivation.

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TL;DR: In this paper, the authors investigate empirical evidence of drift from social goals (mission drift) among Indian micro-finance institutions (MFI) using multiple proxies, namely, loan size, operating efficiency and equity as dependent variables to avoid the complexities in interpreting mission drift solely through loan size.
Abstract: The purpose of this paper is to investigate empirical evidence of drift from social goals (mission drift) among Indian microfinance institutions (MFI).,The study used multiple proxies, namely, loan size, operating efficiency and equity as dependent variables to avoid the complexities in interpreting mission drift solely through loan size. The study uses data from 211 Indian MFI for the period of 1985–2014. The dynamic panel data estimation method of Arellano and Bond (1991) is used for the analysis to avoid endogeneity issues in the data estimation.,The study finds that efficiency and change in average loan balance are characterized by higher lending rates and higher profitability to firms. Higher lending rates imply poverty premium which means that poor pay more for the same services than their rich counterparts. Equity results in movement toward safer borrowers and a consequent mission drift.,The study uses self-reported data from organizations provided through Microfinance Information Exchange.,Access to credit to the poor is an important poverty alleviation goal and present study will contribute toward policy formation in institutional provision of credit and banking services to the poor.,To the best of the authors’ knowledge, present study is the first to use alternative proxies in the form of operating efficiency and equity to explore relationships between the variables that can help to better understand the phenomenon of mission drift.

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TL;DR: In this article, the authors investigated the relationship between macro-corporate governance indicators and China's outward foreign direct investment (ODI) and found that the effects of macro-Corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China's ODI.
Abstract: Purpose China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found that China’s ODI is driven by the attractions of natural resources and overseas markets. Yet these studies have ignored the role of corporate governance at a national level, the paper aims to discuss these issues. Design/methodology/approach The Kaufmann et al. (1999) data set is used in our study and the data sample have covered the period from 2003 to 2012 for a comprehensive set of 171 host countries. Random effects model are applied in the paper and population average model is used to check the robustness of the results. Findings The authors find that the effects of macro-corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China’s ODI. Indicators such as political stability, the absence of violence, regulatory effectiveness, regulatory quality, the rule of law and the control of corruption are found to be positively related to China’s ODI. Originality/value This is one of the first papers to investigate the relationship between macro-corporate governance indicators and China’s ODI. 171 countries are included in the data sample and sub-sample tests are also conducted.