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on Microfinance |
| By: | Djaffar Lessy; Nahla Dhib (Equipe de Probabilité et Statistique - JAD - Laboratoire Jean Alexandre Dieudonné - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique, Université Côte d'Azur, CNRS, LJAD - Partenaires INRAE); Francine Diener (Equipe de Probabilité et Statistique - JAD - Laboratoire Jean Alexandre Dieudonné - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique); Marc Diener (Equipe de Probabilité et Statistique - JAD - Laboratoire Jean Alexandre Dieudonné - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We consider a Markov-Chain model for a Microfinance Institution (MFI) borrower who can be in one of four states: Applicant (A), Beneficiary (B − or B +) of a small or a large loan, or included (I) in the regular banking system. Given the transition matrix we compute the equilibrium and deduce the influence of probability parameters on what is profitable to the borrower within breaking-even constraints of the MFI. We give a general theorem on the total expected actualized income of a Markov Chain with Income (MCI), that we then apply to our model to determine the constrains emerging from Absence of Strategic Default (ASD) requirements. These do not only bound the probabilities from above but sometimes also from below. |
| Keywords: | Micro-credit,Markov Chain with Income,financial inclusion,Absence of Strategic Default JEL codes: C02,D24,G21,L26 |
| Date: | 2020–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02914031&r=all |
| By: | , arasy alimudin |
| Abstract: | Most research on female entrepreneurs revealed that poor in capital capacity and managerial capability become the most problems for them to move ahead. These female street vendors poor of capability in microfinance management also become other crucial issue to be solved besides some other key issues on business planning, administrating, creating source of business financing, to survive in such competitive world. This study examines the effectiveness of financial management capability of female street vendors in strengthening their business capital and reducing the bankruptcy risk and poverty. This research conducted a survey and examined in-depth problem to get the formulation of the problems of female street vendors in facing and solving problems as alternative strategies to empower them. The Data techniques analysis used in this study is descriptive analysis techniques which were used to examine the specific characteristics and profile formulation of female street vendors in the area. Descriptive analysis techniques supported by statistical analysis techniques using logistic regression to describe the methods of business financial management female street vendors in Surabaya and Sidoarjo. The result of this research shows that the main problems faced by female street vendors in Surabaya and Sidoarjo is lack of capability in making bargaining power in competitive rigidity to larger range similar business and lack of capability in financial management strategic development. The most effective method in strengthening the female street vendors is by making similar range on their business to be one specific group that is accommodated in association supported by the government |
| Date: | 2020–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:3bmuy&r=all |
| By: | Andinet Woldemichael (Research Department, African Development Bank) |
| Abstract: | Every year, millions of people suffer from financial catastrophe due to out-of-pocket healthcare payments and most of them are pushed into poverty. This study investigates the impacts of community-based health insurance schemes on health-related financial shocks and poverty, using a nationally representative household survey data from Rwanda. We address issues of selection bias in health insurance enrollment, heterogeneity in treatment effects and non-normality in the outcome variables using Extended Two-Part Model within a Bayesian estimation framework. We find that community-based health insurance schemes reduce the incidence of catastrophic healthcare spending by about 20 percentage points. We also finding that community-based health insurance schemes reduce the headcount poverty rates and the poverty gap due to out-of-pocket healthcare payments by about 8 percentage points and by about 3 USD in 2000 prices, respectively. The estimated treatment effects are however heterogeneous across households. |
| Keywords: | impact, selection bias, endogeneity, health insurance, low-income, community-based JEL Classification: C21, C11, D04, I13, I15 |
| Date: | 2020–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:2458&r=all |
| By: | Hongjoo Hahm (Macroeconomic Policy and Financing for Development Division, UNESCAP); Tientip Subhanij (Macroeconomic Policy and Financing for Development Division, UNESCAP); Rui Almeida (Macroeconomic Policy and Financing for Development Division, UNESCAP) |
| Abstract: | Remittances are an important source of external finance for developing countries, and especially for the Pacific small island developing States (Pacific SIDS). The transaction costs of sending remittances to these countries are amongst the highest in the world. Tackling this issue is crucial not only for economic and social development, but also for improving financial inclusion. This paper is one of the first to analyse fintech adoption in remittance services in the Pacific SIDS, using an original framework to assess the current landscape of fintech in the remittance sector and draw tailored policy recommendations. The framework is conceptualized through a ladder with five rungs: availability, accessibility, awareness, literacy and trust. Based on this, the paper systematically analyses the fintech landscape in the Pacific SIDS and finds that most of these dimensions are still not observed, which results in strong preference for the more expensive traditional remittance services. It finds that among all the fintech-based remittance services, mobile money is the most prevalent and more readily accessible to individuals in the Pacific. Countries in the region are different in their stage of readiness for fintech adoption. While Fiji, Samoa and Tonga have shown almost all of the necessary conditions for adopting fintech-based remittances, other countries still lack behind, requiring extra efforts to encourage the digital transformation of remittance services. |
| Keywords: | small island developing States; Pacific; fintech; remittance transaction costs |
| JEL: | F24 G28 O33 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/19/08&r=all |
| By: | Ozili, Peterson K |
| Abstract: | This article presents some criticisms of financial inclusion. It notes that (i) financial inclusion is an invitation to live by finance and leads to the financialisation of poverty; (ii) some of the benefits of financial inclusion disappears after a few years; (iii) financial inclusion ignores how poverty affects financial decision making, (iv) it promotes digital money which is difficult to understand, (v) financial inclusion promotes the use of transaction accounts; (vi) digital money is difficult to understand; and that (vii) some financial inclusion efforts bear a resemblance to a campaign against having cash-in-hand. This study will help policymakers in their assessment of the economic, social, political and cultural factors that hinder financial inclusion as well as the consequence of financial inclusion for society. For academics, this study will provide a critical perspective to on-going financial inclusion debates in the large positivist literature on financial inclusion |
| Keywords: | : financial inclusion, criticism, poverty, digital money, digital finance, financial literacy, financial education. |
| JEL: | O1 O17 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101813&r=all |