Showing papers in "International Journal of Social Economics in 2020"

Mobile money as a financial inclusion instrument: what are the determinants?

Abstract: This paper seeks to examine the motivating factors that propel people to use mobile money in the Greater Accra Region (GAR) of Ghana. The authors posit that the behaviour of a person, in terms of the choice and means of transaction, cannot be explained solely by utility-maximizing assumptions or rationality. Thus, other socio-cultural and psychological factors are crucial in determining whether a person will use mobile money.,This study uses a cross-sectional design to obtain primary data on 733 households from the GAR of Ghana to determine the drivers of mobile money use. Given the binary nature of the dependent variable, a logit model and its marginal effects are estimated. Furthermore, parametric and non-parametric statistical tests are used to examine gender effect and mobile money use.,The study finds that technology savvy cohorts (youthful age cohorts), available services such as phone credit recharge, education and income are among the key determinants of mobile money use in Ghana. Furthermore, parametric and non-parametric tests of mobile money use on gender show a statistically significant difference in gender use of mobile money, albeit, marginal. The findings imply that consistent use of mobile money to access social and economic services can go a long way in promoting financial inclusion, financial empowerment and general wellbeing of people.,Households in developing countries especially Ghana have rapidly embraced mobile money technology. However, what determines the household level of adoption, to the best of our knowledge, is unknown and yet to be tested. This study bridges that gap in the empirical literature as well as contributes to policy decisions.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2020-0271

Determinants of financial inclusion in rural India: does gender matter?

Abstract: Since finance is an efficacious instrument for economic development, social inclusion and women empowerment, the present paper examines the determinants of accessing institutional and non-institutional finance across male- and female-headed households in rural India,Multinomial logistic regression is applied for categorizing households' accessing finance in four categories, namely Only Institutional Finance (IF), Only Non-institutional Finance (NIF), Both Sources of Finance (BF) and Neither Source of Finance (N) Both household and state-level determinants have been analysed Household data set is sourced from the Situation Assessment Survey (NSSO, 70th round) and state-level data sets from Basic Road Statistics 2016, Agricultural Statistics at a Glance 2016, Rainfall Statistics of India 2014, database on Indian Economy RBI and Census 2011 Econometric regressions have been evaluated for female-headed households (FHHs), male-headed households (MHHs) and overall pooled households (HHs),Four important findings emerge First, FHHs have a lower probability of accessing IF and a higher probability of accessing NIF vis-a-vis MHHs Second, in general, education levels, monthly household consumption expenditure, land size holding, irrigated area and penetration of scheduled commercial banks favourably influence FHHs accessing IF Third, FHHs belonging to socially disadvantaged castes have a lower probability of accessing IF Fourth, a substantial proportion of FHHs accesses neither IF nor NIF relative to MHHs,The paper thoroughly addresses the issue of accessing finance by FHHs and MHHs, which will further assist policymakers in formulating holistic financial policies for rural India,The paper recommends increasing women's access to financial services as an effective tool for reducing poverty and lowering income inequality in rural India,This article contributes to the scant empirical literature on finance and gender

Human capital and export performance of small and medium enterprises in Pakistan

Abstract: This study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of Pakistan. The study also investigates the role of absorptive capacity in the relationship between human capital dimensions and export performance.,Data from 586 manufacturing sector SMEs were collected for analysis. The study applied covariance-based structural equation modeling (SEM) to estimate the hypothesized relationships.,As a whole, human capital was found to exert a direct and indirect impact on export performance, particularly for the medium-sized firms and for firms with medium to high levels of export intensities. Nevertheless, not all dimensions of human capital mattered for export performance. Education and training were found to pose the greatest influence on export performance of those firms.,The results suggest that when devising appropriate policies for SMEs, the impact of different dimensions of human capital need to be considered for addressing challenges related to the internationalization of firms. In short, developing the right human capital is essential for SMEs to compete at the international level.,Unlike previous studies, this study decomposed the influence of different dimensions of human capital on export performance and assessed the mediating role of absorptive capacity. The study is also among the pioneering studies in SMEs sector of Pakistan to analyze the role of absorptive capacity in the relationship between various dimensions of human capital and export performance.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2019-0198

Institutions and economic growth in ECOWAS: an investigation into the hierarchy of institution hypothesis (HIH)

Abstract: The purpose of this paper is to examine the relationship between the quality of different dimensions of institutional and economic growth in a panel of 15 member ECOWAS.,The study adopts Driscoll and Kraay′s nonparametric covariance matrix estimator, and the spatial error model to account for cross-section dependency, cross-country heterogeneity and spatial dependence inherent in empirical modelling, which has largely been ignored in previous studies. This is because, the likelihood that corruption and human capital cluster in space is very high because factors that affect these phenomena disperse across borders. Similarly, to test the threshold effect, the study adopts the more refined and more appropriate dynamic panel data which models a nonlinear asymmetric dynamics and cross-sectional heterogeneity, simultaneously, in a dynamic threshold panel data framework.,The empirical evidence supports findings by previous researchers that better-quality political and economic institutions can have positive effects on economic growth. Similarly, our results support a nonlinear relationship between political institutions and economic institution, confirming the “hierarchy of institution hypothesis” in ECOWAS. Specifically, the findings show that economic institutions will only have the desired economic outcome in ECOWAS, only when political institution is above a certain threshold.,Unlike previous studies which assume cross-sectional and spatial independence, the authors account for cross-section dependency and cross-country heterogeneity inherent in empirical modelling.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2019-0630

Testing Malthusian's and Kremer's population theories in developing economy

Abstract: This study aims to test the Malthusian and Kremer theories by exploring the relationship between population and economic growth in a low middle-income economy of India.,The autoregressive distributed lag approach is employed based on the nature of time-series data to achieve the study objectives. In this study, regressand is economic growth measured by real GDP, and the regressors are population growth rate, investment, life expectancy and inflation rate from 1980 to 2018.,Empirical results confirm the applicability of Kremer’s theory. In this theory, population growth has a significant and positive impact on economic growth in the short and long run. Moreover, investment and life expectancy variables have a positive and significant impact on economic growth, whereas inflation rate has a negative association with economic growth. Empirical results support the population-growth-driven economic growth hypothesis, which indicates that population growth stimulates economic growth and development.,Empirical findings in this study provide guides for management authorities in formulating the right and relatable policies on population growth whilst promoting economic growth and social welfare.,Achieving a desirable level of economic growth is the prime objective of every country. The role of the population in the process of economic growth and development cannot be overlooked. Malthus' and Kremer's views are opposite. Extant literature exhibits that scant research has been carried out on this significant topic in developing countries. Therefore, empirically investigating the effect of population on the growth performance of India as a developing country is necessary and will significantly contribute to the literature.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2019-0496

What does (and does not) affect crime in India

Abstract: This paper uses data from 2010 to 2016 across 32 states and union territories to investigate the determinants of crime in India. Results indicate the significance of macroeconomic, demographic, socioeconomic and deterrence factors in accounting for various categories of crime.,Due to the evidence of heteroskedasticity and cross-sectional dependence, linear regression with panel-corrected standard errors is implemented.,It has been found that among the macroeconomic factors, only GSDP per capita was found relevant in explaining total crime rates. However, the unemployment rate and price level are crucial in explaining some categories of crime. The demographic factor, that is, population density, socioeconomic factors, that is, income inequality, poverty rate, literacy rate exhibit important and significant relationship with crime rates in India. Further, out of the four deterrence factors, charge-sheeting rate, conviction rate, pendency in police cases are important in explaining various categories of crime rates in India.,While implications of some socioeconomic variables are consistent with those found in previous studies, literacy rates and deterrence variables were found to have a positive association with crime. In particular, in a developing country such as India, white-collar crimes tend to increase as literacy rates increase. This calls for implementing policies that lead to greater employment opportunities for the educated masses. This paper also sheds light on the relationship between deterrence factors and crime rates in India. Deficiencies in the legal and judicial system have been detrimental to the nation's ability to curb crime rates.

Development, present status and performance analysis of agriculture insurance schemes in India: Review of evidence

Abstract: Agriculture insurance is the panacea for the farming community. Many policy interventions were implemented for stimulating agriculture insurance access to farmers in India. However, access to agriculture insurance constantly remained one of the major challenges to Indian policy planners. The goal of the present paper is to explore current policy interventions in the area of agriculture insurance in India.,The present paper reviews and analyzes the evidence literature through a content analysis method on development and performance analysis perspective of existing agriculture insurance schemes in India.,Agriculture insurance is a significant risk management policy, but this is not easily reachable to the majority of farmers in India. The government of India introduces a novel agriculture scheme every decade, but every crop insurance scheme was inconsistent and ineffective owing to operational defects. Agriculture insurance in India is still developing in terms of coverage, scope, and exposure, but farmers' dissatisfaction about agriculture insurance turned out to be a negative word of mouth. Insurance illiteracy and farmers' preference for agriculture relief payments are the main reasons for limited access to agriculture insurance. The current crop insurance schemes are improperly operated because of implementation issues at the state level.,This paper will be useful for researchers and academicians to analyze the past and present status of crop insurance in India.,The paper is the unique work of the authors as it has attempted to present India's journey with agriculture insurance. An effort is made in the present study to provide a comprehensive and holistic developmental and performance analysis perspective of agriculture insurance in India.

Forty-five years of the International Journal of Social Economics (IJSE): a bibliometric overview

Abstract: The International Journal of Social Economics has completed 45 years of its publication in 2018; as a part of this recognition, this paper aims to present an overview of the IJSE through bibliometric analysis of its contents from 1974–2018.,Using data from Scopus database, the prominence of the research is assessed by studying and analyzing annual publication, and citation structure, most cited papers in IJSE, documents most cited by IJSE, most productive author, institution and country in IJSE with their temporal analysis and the thematic structure of the journal through keyword co-occurrence analysis. Additionally, a graphical representation of the bibliometric data using VOSviewer is presented in the paper.,Major findings show that IJSE has grown in productivity, as well as stature as the number of articles published each year, and the citation counts are increasing. Major themes published in the journal include poverty, social economics sustainable development, developing country, religion, economic theory, etc.,This is the first article providing an overall summary of the research work published in the journal.

Dimensions and drivers of women's empowerment in rural Nigeria

Abstract: The majority of poor women in Africa live in rural areas, and investigating their empowerment status and factors influencing their empowerment is therefore a tool for overcoming poverty. This paper investigated the dimensions and determinants of women's empowerment in rural Nigeria.,This study used data from the 2013 Nigeria Demographic and Health Survey (NDHS). Information on women's agencies, resource, income, leadership and time/workload was used to construct women empowerment index (WEI). Data were analyzed using descriptive statistics and logit regression model.,Most of the decisions were made by the women's spouses, while decisions on how to spend her earnings were jointly made with her spouse. A majority of the women did not justify beating nor owned businesses. A larger percentage of rural women were disempowered than men; agency had the highest relative contribution to women's disempowerment; and women in the northern zones of Nigeria were less empowered than their southern counterparts. Husband's education and her age were inversely related to women's empowerments while her education, household size and being the household head were directly related to it.,There is a dearth of empirical studies on multidimensional women's empowerment in rural Nigeria. This study therefore provides a clear understanding of drivers of women's empowerment in rural Nigeria, and its findings are to serve as guiding documents for policymakers in designing gender-responsive interventions programs and implementation of a genuine gender mainstreaming in rural development policy in Nigeria. Further, the findings would contribute to the growing body of knowledge, especially empirical studies, on women's empowerment in Nigeria and the developing world.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2019-0455

Does intention influence the financial literacy of depositors of Islamic banking? A case of Malaysia

Abstract: Since the establishment of Islamic banks in Malaysia since the 1980s, the banking system has undergone rampant development within the financial industry. It has resulted in a positive competitive challenge for the conventional banks and able to attract not just the Muslim customers, but also those non-Muslim customers. At the same time, understanding the customers' knowledge of Islamic banking products is an interesting issue to explore. This issue is raised because the Islamic bank products are often packaged using Arabic terms, even though it is marketed in non-Arabic countries like Malaysia. Therefore, this study aims to examine the factors that influence the intention of the Islamic banking customers as the result of relying on some information produced by Malaysian Islamic banks.,This study is conducted using the existing underpinning theory of planned behaviour (TPB). A total of 300 questionnaires were analysed using the structural equation modelling (SEM).,The results indicated that perceived behavioural control, attitude and subjective norms of the Islamic banking depositors are positively influenced by the intention of the depositors to learn about Islamic banking.,One of the main issues faced in this study is the result cannot be generalised. It is not possible to know based on the collected data if the sample is representative, other than the fact that all of the respondents are Islamic bank depositors. Nevertheless, it can still be a catalyst for further research as a link to existing findings in the area. There might be a bias on the understanding of the respondents about Islamic banking. This is due to the fact that Malaysia is a multi-racial population. Malay people might have a better understanding and basic knowledge about Islamic banking than the Chinese, Indians and other races. This cultural bias could be overcome in future studies by identifying respondents who have experiences in dealing with Islamic banking.,This study provides interesting insights of the Malaysian banking industry in terms of the multi-racial customers' intention to learn about Islamic banking, which is scarcely discussed in the extant literature.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2019-0011.

SME credit constraints and access to informal credit markets in Vietnam

Abstract: Purpose: A review of literature has documented that accessing formal credit and other banking services has always been a crucial challenge for small and medium-sized enterprises (SMEs) The alternative, therefore, tends to be informal channels However, the credit constraint vis-a-vis informal channel link does not appear to be well documented in the literature This study aims to investigate whether credit constraints significantly affect the probability of accessing informal credit, as well as the credit values of Vietnamese SMEs Design/methodology/approach: This study uses a trinary approach and correlated random-effects Probit and Tobit techniques to avoid the incidental coefficients problem Findings: The results suggest that relative to unconstrained and partially constrained firms, fully constrained firms tend to be more active in the informal credit markets, shown by their higher probability of informal credit access and larger credit values Originality/value: To the best of authors’ knowledge, this is the first study on Vietnam that takes a different approach to credit constraints and examines their impact on informal credit access Policy implications arise and are discussed

Factors associated with willingness to pay for health insurance and pension scheme among informal economy workers in low- and middle-income countries: a systematic review

Abstract: The purpose of this paper is to establish the main factors influencing willingness to pay for health insurance and pension schemes among informal workers in low- and middle-income countries (LMICs). Historically, informal economy workers have been excluded from social protection coverage. There is a growing need, interest and policy discourse in LMICs to extend social security to informal economy workers. However, little is known about informal workers' willingness to pay (WTP) for social security services in different LMIC settings.,The authors conducted a systematic review and searched five databases from 1987 to 2017. Included papers focused on “social security”, “social insurance”, “pension”, “informal economy”, “informal sector” and “informal workers” in LMICs. Authors conducted independent data appraisal and data extraction. A total of 1790 papers were identified. After exclusion, 34 papers were included in the analysis. Given the heterogeneous results, the authors performed a narrative synthesis to consolidate the findings of the different studies.,In total, 34 studies from 17 countries were included in the review, out of which 23 studies focused on health insurance, 7 studies on pension schemes and 4 studies on social security in general. The study showed that income and trust were associated with WTP for both health insurance and pension schemes. In addition, family size, age, education and residential area were common factors for both forms of social security. For health insurance, experience of sickness, attitude and presence of medical doctors as well as distance from the healthcare facility all played a role in determining WTP. For pension schemes, low and flexible contribution rates, benefit package, government subsidies and quality of administration of the schemes influenced enrolment and contributions.,More evidence is needed for WTP for pensions among informal workers.,The findings show that socio-economic differences, scheme-type (health or pension) and level of trust influence WTP for health insurance or pension among informal sector workers. The review results suggest that the factors influencing WTP for health insurance and pensions interplay in a complex web of relations. More evidence is needed on WTP for pensions among informal workers.,Further studies are particularly needed on the interrelationship of the influences to WTP, including gender issues, access barriers and socioeconomic factors, among program design issues for social security.,This paper is based on a systematic review methodology and contributes to the discourse on extending social security to informal economy workers based on evidence from various countries.

Does credit boost agricultural performance? Evidence from Vietnam

Abstract: This study investigates the short-run and long-run impacts of agricultural credit on Vietnam's agricultural GDP over the period 2004:Q4–2016:Q4, with the incorporation of agricultural labor, public investment and rainfall as important determinants of agricultural GDP.,This study applies the indicator saturation (IS) break tests and the autoregressive distributed lag (ARDL) bounds test with structural breaks to examine the credit–agricultural performance nexus. The causal relationships among variables are explored through the Toda–Yamamoto Granger causality test.,The results indicate that agricultural credit positively influences agricultural GDP in both the short-run and long-run. A unidirectional causal relationship running from credit to agricultural GDP is confirmed. The results also discover the positive and significant effects of labor and rainfall on agricultural GDP in the long-run.,The results imply that the government should focus on expanding agricultural credit as well as enhancing the efficiency of agricultural credit. Furthermore, formal credit institutions should be encouraged to work closely with farmers and agricultural enterprises to offer flexible lending periods and amounts to meet the real situation of agricultural production.,This study is the first to examine the credit–agricultural performance relationship at the macro-level in Vietnam. Based on the empirical results, the study provides crucial implications for policymakers to optimize the effectiveness of agricultural credit and enhance nationwide agricultural performance.

Co-operatives, territories and social capital: reconsidering a theoretical framework

Abstract: This paper promotes a critical approach to co-operative studies by contributing new theoretical insights. The aim is to propose a new view on the co-operative firm as a socioeconomic phenomenon embedded into the local contexts in which it is situated. Sociological and economic analyses have mainly explored the relationship between co-operative members and the organization, the economic performance of co-operatives or compared co-operatives with other firm types. Less attention has been given to the co-operative–territory relation, which can reveal insights into members' collective actions, a co-operative's origins from specific social groups or how they establish relationships with certain community stakeholders over others.,The paper begins with a literature review of academic studies that situate co-operatives in relation to community, with a focus on how social capital theory has been deployed to understand this relation. It then proposes a theoretical examination of two fundamental authors in the field of social capital theory: Robert Putnam and Pierre Bourdieu. Drawing on findings from the literature review and considerations derived from the theoretical dialog between Putnam and Bourdieu, the paper proposes a revised social capital-based framework for analyzing key relations and expected outcomes of the co-operative–territory relation.,Reconsidering the role of social capital theory for co-operative studies, this article unfolds a dual reflection. First, it underlines the necessity for research that more closely considers co-operatives' territorial relationships. Second, it critically interrogates and pushes forward social capital theory as a framework for examining the social relations that embed co-operatives and their capacity to activate territorial economies.,The paper highlights the necessity for a further examination of the co-operative–territory relationship. It presents an innovative framework for improving sociological understanding of co-operatives as organizations embedded into their local socioeconomic contexts.

Does mobile money promote financial inclusion in Eswatini

Abstract: Mobile money, a service permitting monetary value to be digitally stored in a mobile phone and transacted to others through text messaging, is increasingly becoming available in several African countries including Eswatini. This study examines the factors associated with mobile money usage and the extent to which mobile money accelerates financial inclusion in Eswatini.,Data were collected from the nationally representative FinScope Consumer Survey for Eswatini conducted in 2014. The authors use a quasi-experimental method in propensity score matching (PSM) with bootstrapped standard errors to alleviate the possibility of selection bias associated with mobile money use and bank account ownership. As a sensitivity check, the authors calculate the average treatment effect (ATE) using kernel-based matching methods, as well as estimate a multilevel model that accounts for the hierarchical structure of data.,The authors found that higher education, entrepreneurship, being female, improvement in work situation in the past year and living in urban area and in the Lubombo region all positively influence the probability to use mobile money. The results also show that individuals who use mobile money are 19% more likely to own a bank account at a formal financial institution with a higher probability estimate observed amongst rural residents.,This study examines whether mobile money accelerates financial inclusion in Eswatini. On analysing data from the 2014 FinScope Consumer Survey, the results show that mobile money does not seem to be accelerating the reach of financial services to those who are structurally excluded from the formal financial system and suggest the need for ongoing review of the financial inclusion strategies of the country to enhance access to financial services in underserved areas.,The peer review history for this article is available at:https://publons.com/publon/10.1108/IJSE-12-2019-0723

Impact of educational and gender inequality on income and income inequality in South Asian countries

Abstract: The objectives of this study are threefold: firstly, to measure the impact of educational inequality on income inequality, and per capita income; secondly, to measure the impact of gender inequality in education on income inequality, per capita income and educational inequality; and lastly, to test the Kuznets inverted U-shape hypothesis between inequality in education and average year of schooling.,The study has adopted the Marin and Psacharopoulos (1976) model of human capital in which income earned by an individual can be estimated as a function of number of year spent in schooling or education. Gini coefficient is used as a measure of income inequality, while inequality in education is measured by Gini index of educational inequality. Gender inequality in education is measured by the difference between male and female enrolment ratios as a proportion of male enrolment. The study utilizes the data of six South Asian countries, i.e. Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka from 1980 to 2010 at five-year average and employs fixed effect model (FEM) and random effect model (REM) for estimation.,Result suggests that educational inequality and average year of schooling have positive and significant impact on income inequality. Primary (basic) education and tertiary (higher) education reduce income inequality, while secondary education widens income inequality. Negative relationship exists between educational inequality and per capita income. Unequal distribution of education among boys and girls at primary level increases income inequality, while reduces income inequality at tertiary level. Gender inequality in secondary and tertiary level of education reduces per capita income, while unequal distribution of education among boys and girls further increases the educational inequality. Kuznets inverted U-shape hypothesis does not hold between education expansion and educational inequality, while weak U-shape relationship exists in South Asian countries.,Government has to provide free education in poor regions and makes employment programs to reduce the income and educational inequality respectively, while to remove gender inequality in education it is necessary to build more schools especially for girls. Government has to launch different online education programs for expansion in education at all levels.,This study adds to the literature by analyzing whether the inequality in income increases (decreases) due to increase (decrease) in educational and gender inequality in South Asian countries. This study contributes in the existing literature by developing a measure of educational and gender inequality in education in South Asian countries., The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2020-0226.

Climate change vulnerability and adaptation in Vietnam from a gender perspective: A case study of Northern province of Vietnam

Abstract: This study analyses climate change vulnerability and adaptation in a northern province in Vietnam from the gender perspective.,A survey questionnaire was used to collect data for the study. The Livelihood Vulnerability Index (LVI) was calculated for 134 female and 239 male-headed households. Descriptive statistics were synthesized to investigate climate change adaptation from the gender perspective.,The results show that the LVI of female-headed households is higher than male-headed households, but the variation is negligible. In addition, female and male farmers in the study area use different methods to adapt to climate change. Female farmers have critically contributed to the family workforce and climate change adaptation. Nevertheless, female farmers have less accessibility to agricultural services such as training and credit.,The study suggests that gendered interventions for improvement of livelihood to adapt to climate change should be developed for each aspect of the livelihood. Furthermore, enhancement of services for women and recognition of women's roles in responding to climate change would contribute to more active adaptation to climate change.,Studies on climate change from the gender perspective in Vietnam have been conducted on a limited scale. Particularly, there are very limited studies on climate change in association with gender issue in North Vietnam. Thus, this study will provide more insights into the gender dimension of climate change vulnerability and adaptation so that gender-based adaptation strategies can be developed.

Empirical relationship between workers' remittances and financial development (an ARDL cointegration approach for Sri Lanka)

Abstract: The purpose of this study aims to investigate the nature of the relationship between workers' remittances and financial development (FD) in Sri Lanka for the period from 1975 to 2017.,This study used both the exploratory data analysis and inferential data analysis (IDA) techniques to test the objective of this study. The IDA technique consisted of the augmented Dickey–Fuller (ADF) and Phillips–Perron unit root tests, the autoregressive distributed lag (ARDL) bounds cointegration technique, the Granger causality test and impulse response function analysis.,The unit root test results show that the variables are in mixed order. The empirical results of cointegration confirm that workers' remittances have a beneficial long-run relationship with FD in Sri Lanka. The Granger causality test result indicates that there is a bidirectional relationship between workers' remittances and FD. The impulse response analysis indicates that a positive shock to workers' remittance has an immediate significant positive impact on the FD of up to 10 years.,The analytical techniques used in this study explain how workers' remittances induce FD in Sri Lanka.,This study fills an important gap in the academic literature by using newly developed ARDL bounds cointegration techniques in Sri Lanka, by using impulse response function analysis, and by studying the dynamic relationship between workers' remittances and FD using time series data.

Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

Abstract: The purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.,The study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.,The author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.,The finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.,This study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.

Examining the willingness to produce organic vegetables in the Bono and Ahafo regions of Ghana

Abstract: The purpose of this paper was to analyse the demographic, crop choice, institutional and environmental factors that will influence the vegetable growers in Bono and Ahafo regions of Ghana to produce organic vegetables. The study also assessed the knowledge level of vegetable growers on organic certification processes.,Primary data were collected with the help of a structured questionnaire from 120 vegetable growers via a multistage sampling technique. The Heckman selection model was used to analyse the factors that influence farmers' willingness to adopt organic production as well as the intensity of adoption.,In this study, pepper (Capsicum spp) production, residential status, knowledge of organic certification processes, perceived negative environmental effect of conventional farming on the soil, and climate change positively influenced willingness to produce organic vegetables. Likewise, pepper production perceived negative environmental effect of conventional farming on the soil positively influenced the intensity of adoption. Household headship status, garden egg (Solanum integrifolium) production, perceived knowledge on grading and standards of vegetables, as well as the perception that only pesticides can be used to control vegetable pests negatively influenced the willingness to produce organic vegetables however perceived expertise of the farmer on grades and standards influenced intensity of adoption negatively.,In Ghana, even though most vegetable farmers do not have the requisite knowledge in the safe handling of pesticides, usage is widespread. Subsequent to this, is a health risk to farmers, consumers and the environment. As a result, there is a growing awareness that organic agriculture has a role to play in addressing problems associated with agrochemical use and over usage. However, most studies are consumer oriented with limited empirical research on the willingness to produce organics by farmers.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2019-0723

The human capital-economic growth nexus in SSA countries: What can strengthen the relationship?

Abstract: The purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.,The authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.,The empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.,The results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.,This study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

Volunteering and self-perceived individual health: Cross-country evidence from nine European countries

Abstract: The paper studies the simultaneous effect of formal and informal volunteering on self-perceived individual health across nine European countries while controlling, among other things, for socioeconomic characteristics and social and cultural participation.,This paper employs the 2006 wave of the EU-SILC dataset for estimating recursive trivariate probit models using instrumental variables.,The paper finds that although formal volunteering and informal volunteering are correlated with each other, they have different impacts on health. Formal volunteering is never correlated with higher self-perceived individual health except in the Netherlands. In contrast, informal volunteering is related to lower self-perceived individual health in Austria, Finland, France, the Netherlands, Spain, and Italy.,The first limitation concerns the absence of other measures of volunteering, such as volunteering hours that are not available in the employed dataset. The second limitation is that the dataset collection on social and cultural variables in EU-SILC is cross-sectional while the optimal dataset should be a panel data. The third limitation is that instrumental variables are observed in the same year of declaring self-perceived individual health while the optimal timing would be at least one year before.,Findings of the paper show that formal volunteering has no effect on self-perceived individual health while informal volunteering has negative consequences.,Volunteering is performed because of an individual decision and could be considered a consequence of how social responsibilities are distributed within countries. Our results show that informal volunteering has a negative effect on health; this is likely to depend on how people manage stress coming from performing this altruistic activity. It is likely that a more cautious distribution of social responsibilities could prevent the negative effects of informal volunteering on health.,The originality of the present paper is in simultaneously examining the impact of formal and informal volunteering on self-perceived individual health. Furthermore, most of the existing studies on formal volunteering and health focus on a single country; this paper compares nine European countries characterized by different social, cultural, economic, and institutional features. Finally, the paper addresses the issue of reverse causation.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2017-0548

Cultural innovation, aspirations and success among smallholders in former homelands of the Eastern Cape province of South Africa: Theory and evidence

Abstract: After unsuccessful attempts of South African governments to carry out a land reform that distributes farmland more justly, this study aims to undertake a stronger segmentation of potential beneficiaries for a better targeting of future reforms.,A theoretical model has been developed along the axes of cultural innovation and aspirations that identifies the segment of current smallholders who would most likely relocate to become commercial farmers in the future. A survey among smallholders in the Eastern Cape province of South Africa confirms the approach.,A number of indicators can be identified, particularly for cultural innovation, that predict willingness to relocate to a region where commercial farms can be managed.,The importance of cultural innovation has been neglected both in theoretical frameworks and in practical concepts of land reform.,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2018-0226

Do food certification standards guarantee small-sized farming enterprises access to better markets? Effectiveness of marketing contracts in Kenya

Abstract: The purpose of this paper is to investigate the influence of GLOBALGAP standards certification on farmer's preference for marketing contract choices including written contracts, oral contracts and spot contracts, as well as to establish the impact of marketing contracts on net returns from snap bean production in Kenya.,In this study, we use a data collected from 446 Snap bean farmers in Kenya. Using a two-step selection Bourguignon Frontier and Gurgand (BFG) model and Propensity Score Matching (PSM), we analysed determinants of Global Gap Certification and other farming characteristics that influence smallholder farmers preference for marketing contracts and net returns from snap beans venture.,Results indicate that attending GLOBALGAP training, GLOBALGAP subsidy support, membership to GLOBALGAP farmer's groups, and selling beans to GLOBALGAP certified GLOBALGAP buyers would significantly influence better returns underwritten marketing contracts. Producing snap beans underwritten marketing contracts would get farmer's net returns of between 1.8 and 8% while producing under oral and spot market contracts would earn farmer net returns of between 0.2 and 0.08 %.,To the best of the authors' knowledge, this study is the first to examine the influence of GLOBALGAP standards certification on marketing contract choices and net returns from snap bean production, while accounting for selectivity biasness.

Social capital as a source of happiness: evidence from a cross-country analysis

Abstract: The purpose of this paper is to explore the impact of social capital on happiness. The previous literature generally measures social capital using “generalized trust”, which is a narrow dimension of social capital. In this study, social capital is measured as a multidimensional concept consisting of generalized trust, institutional trust and trust on family, neighborhood and strangers.,This study explores the relationship between social capital and average happiness using a panel data of 89 countries from 1980 to 2017. The empirical analysis is done by employing pooled OLS (POLS), fixed effects method (FEM), random effects method (REM) and system generalized method of moments.,The findings demonstrate that all measures of social capital are positively associated with happiness while comparatively institutional trust and generalized trust appear more significant for happiness. The findings are robust to different robustness checks. The findings document the importance of social capital for average happiness.,The research has certain limitations. First, the objective of study was to cover global sample of countries, however, the data series were not available for all countries. Second, the empirical is restricted to global evidence instead of exploring separate estimates for developed and developing world.,The findings document the importance of social capital for average happiness. The awareness of the importance of social capital needs to be increased. Government can develop such organizations or institutions that are conducive for social capital development.

The size of the informal economy in Nigeria: a structural equation approach

Abstract: This paper contributes to the literature concerning the Nigerian informal economy (IE) by estimating its size from 1991 to 2017 and identifying the major causes.,A structural equation approach in the form of the multiple indicators multiple causes (MIMIC) method is used to estimate the size of the Nigerian IE.,The results indicate that vulnerable employment and urban population as a percentage of the total population are the main drivers of the IE in Nigeria. The IE in Nigeria ranges from 38.83% to 57.55% of gross domestic product (GDP).,As a result of the empirical challenges in the estimation of the IE, the estimates of Nigeria's IE are considered to be rough estimates.,The authors calibrated the MIMIC model with the official estimate of the informal sector published by the Nigerian National Bureau of Statistics (NBS). This was an attempt to combine the national accounting approach, to estimate the size of IE, with the MIMIC approach, and to estimate the trend of informality.

Does economic freedom improve health outcomes in sub-Saharan Africa?

Abstract: The purpose of this study is to examine the impact of economic freedom on four key health indicators (namely, life expectancy, infant mortality rate, under-five mortality rate and neonatal mortality rate) by using a panel dataset of 34 sub-Saharan African countries from 2005 to 2016.,The study obtains data from the World Development Indicators (WDI) of the World Bank and the Fraser Institute. It uses fixed effects regression to estimate the effect of economic freedom on health outcomes and attempts to resolve the endogeneity problems by using two-stage least squares regression (2SLS).,The results indicate a favourable impact of economic freedom on health outcomes. That is, higher levels of economic freedom reduce mortality rates and increase life expectancy in sub-Saharan Africa. All areas of economic freedom, except government size, have a significant and positive effect on health outcomes.,This study analyses the effect of economic freedom on health at a broad level. Country-specific studies at a disaggregated level may provide additional information about the impact of economic freedom on health outcomes. Also, this study does not control for some important variables such as education, income inequality and foreign aid due to data constraints.,The findings suggest that sub-Saharan African countries should focus on enhancing the quality of economic institutions to improve their health outcomes. This may include policy reforms that support a robust legal system, protect property rights, promote free trade and stabilise the macroeconomic environment. In addition, policies that raise urbanisation, increase immunisation and lower the incidence of HIV are likely to produce a substantial improvement in health outcomes.,Extant economic freedom-health literature does not focus on endogeneity problems. This study uses instrumental variables regression to deal with endogeneity. Also, this is one of the first attempts to empirically investigate the relationship between economic freedom and health in the case of sub-Saharan Africa.

ICT infrastructure, innovation development and economic growth: a comparative evidence between two decades in OECD countries

Abstract: The objective of this study is to examine the causal relationship between economic growth, information and communication technology (ICT) penetration and innovation development in OECD countries.,This study incorporates data for 24 OECD countries from 2000 to 2018, which is divided into the earliest (2000–2009) and the latest (2010–2018) periods. The econometric methodologies of this study employ panel cointegration, estimation procedures and vector error-correction modelling to investigate the potential interconnections between ICT, innovation development and economic growth.,The results from the latest period illustrate that OECD countries have achieved positive and significant economic development from high ICT penetration, while results from the earliest period show that OECD countries were just beginning to enjoy the benefits of ICT penetration. Moreover, findings show that innovation development is highly significant in the latest period when promoting economic growth.,The policy implications suggest that promoting ICT infrastructure establishment and expanding the innovation development may drive the process of economic development in OECD countries.,This study employs mobile and Internet penetration as the development of telecommunication which is in line with the enlargement of innovation to foster economic growth in OECD countries. Comparing the evidence from two decades provides significant value for policymakers and decision-makers regarding the advantages of technology expansion and innovation development to promote economic growth in recent conditions.

Public investment and inclusive growth in Africa

Abstract: The increasing debate on the viability of broad-based productive employment in stimulating the participatory tendencies of growth makes it instructive to inquire how the African “Big Five” have fared in their quests to ensure growth inclusiveness through public investment-led fiscal policy.,Time varying structures and nonlinearities in the government investment series are captured through the non-linear autoregressive distributed lag, asymmetric impulse responses and variance decomposition estimation techniques.,Study findings show that positive investment shocks stimulate growth inclusiveness by enabling access to opportunities through job creation and productive employment for the populace; this result is evident for Morocco and Algeria. However, there is a non-negligible evidence that shocks due to decline in the government investment manifest in insufficient capital stocks and limited investment opportunities, impede access to opportunities by the populace, hinder labour employability and make growth less inclusive. Furthermore, all short-run findings corroborate long-run results regarding the reaction of inclusive growth to positive investment shocks with the exclusion of South Africa; which, unlike its long-run finding, shows that shocks due to increases in investment can foster growth inclusiveness. Also, in respect to short-run negative investment shocks, Nigeria is the only country that does not align its long-run findings.,That public investment shocks make or mar inclusive growth effectiveness shows the need for appropriate fiscal policy consolidation and automatic stabilization guidelines to ensure buffers against shocks and to enhance government investment generation efficiency for a sustainable inclusive growth process that is more participatory in Africa.,This study is the first to accommodate possibilities of shocks in the inclusivity of growth analysis for the five biggest African economies which jointly account for over half of the recorded growth in the continent. As such, there is quantitative evidence that government investment is a potent determinant of growth inclusiveness and it is susceptible to structural changes and time variation of shocks.

Financial inclusion and migrant remittances in Sub-Saharan Africa: a panel VAR approach

Abstract: This study examines the causal and dynamic link between financial inclusion and migrant remittances in sub-Saharan Africa.,The study employed a panel vector autoregressive (VAR) framework to examine the dynamic relationship between financial inclusion and migrant remittances in sub-Saharan Africa.,The findings indicate that there is a reverse causality between financial inclusion and migrant remittances in sub-Saharan Africa.,The practical implications of these findings are that central governments and economic policymakers in sub-Saharan African countries should formulate and implement policies aimed at fostering financial inclusion if they are to attract more migrant remittances to promote economic growth and financial sector development. This suggests that these two variables are complementary and not contradictory. The results also suggest that central banks and other financial institutions can leverage the positive effect of financial inclusion of financial sector development to enhance the development of the financial sector instead of pursuing financial sector development as a policy objective. This means policies aimed at promoting financial inclusion will not impede or sacrifice migrant remittances, economic growth and financial sector development.,This paper is the first to construct a financial inclusion index to examine the link between financial inclusion and migrant remittances from the sub-Saharan Africa perspective,The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2019-0612/