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on Microfinance |
| By: | Khaleque, Abdul |
| Abstract: | The present study is based on 5208 observations, which is comprised of participant households of microcredit programs, non-participant households of program villages as well as non-participant households from control villages. We found that among the participant households 37% depend on wage as well as self employment activity and 20% is solely dependent on self-employment activity and the remaining depends on dual activity (self-employment as well as wage employment), but among the non-participant households 60% is solely dependent on day labor activity. To find the link between occupation selection and microfinance participation, we use simple as well as multiple regression models like logit, multinomial logit, seemingly unrelated regression, etc. The regression results based on earnings from the elective occupations or number of days worked in that occupation suggests that the surveyed participant households have higher likelihood of being self-employed or to maintain self-employment as well as wage employment at a time to increase their welfare. The shifters due to relaxation of credit constraint or proliferation of access to credit moves toward sole self-employment activity with higher likelihood than the dual activity – to be employed in self-employment as well as wage employment within a given time span. In compendium, we can lucidly claim from this paper that beyond the asset structure of the households such as landholdings, savings, education, etc., the microfinance directly induces self-employment activity or transfer available working days from the day labor activity to self-employment activity and maximize their economic gain such as higher income, savings etc. |
| Keywords: | Credit; Self-employment; Logit; Multinomial logit; Seemingly Unrelated Model |
| JEL: | E24 J22 J24 J23 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32637&r=mfd |
| By: | Akhimienmhonan, Douglas; Fulton, Murray E. |
| Abstract: | This paper presents two models in explaining time allocation to micro credit (MC) by households in North America. The single-period model explains the optimal allocation of time to a microenterprise in any given period, conditional on the household having self-selected into the MC program. A householdâs time allocation is negatively affected by its wage in paid employment, its degree of risk aversion, and its relative preference for leisure. The multi-period model explains the householdâs decision to self-select into the MC program. This decision is anchored on the sequential lending attribute of most MC programs. Sequential lending means that a householdâs current use of MC gives it access to greater funds in the future. The likelihood of self-selecting into the program is positively influenced by the size of the micro credit loan, the future streams of loans anticipated from current participation, the rate of appreciation of the investment over time as well as the householdâs discount factor. This likelihood is negatively influenced by the householdsâ wage rate in paid employment and the costs of borrowing. Under certain conditions, the household â in a bid to access a future loan â would borrow money in the short run and repay it without having invested it in a microenterprise. Implications for the demand for MC in North America are discussed. |
| Keywords: | Microenterprise, Sequential lending, Time allocation, Micro credit, Discount factor, Consumer/Household Economics, Food Security and Poverty, Labor and Human Capital, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:waea11:108134&r=mfd |
| By: | Guivanna Aguilar (Departamento de Economía - Pontificia Universidad Católica del Perú) |
| Abstract: | The objective of this study is to make a quantitative evaluation of the impact that the expansion of the microcredit has had on the growth of the economic activity in the Peruvian regions. Having as a theoretical framework the developed theory to analyze the relationship between economic growth and financial development and with annual information for 24 regions of the country in period 2001 - 2008, a panel data model is estimated with per capita GDP growth like dependent variable and the loans provided by various types of microfinance institutions, the loans of the commercial banks and other variables that affect the economic growth like explanatory variables. The found evidence suggests that the microfinancial expansion has a positive impact in the growth of the economic activity of the regions unlike which it happens with the expansion of the banking intermediation. A comparative static exercise show that if the loans of CMAC, CRAC and specialized banks get to rich 10% of the GDP in each region, the rate of growth of the GDP per capita would rise in at least 4 percentage points. In the regions with greater poverty increase is more impressive and significant. |
| Keywords: | Microfinanzas, intermediarios financieros, cajas municipales, cajas rurales, crecimiento regional. |
| JEL: | C32 E32 E43 E52 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00317&r=mfd |
| By: | Kirui, Oliver K.; Okello, Julius Juma; Nyikal, Rose Adhiambo |
| Abstract: | Smallholder farmer access to agricultural finance has been a major constraint to agricultural commercialization in developing countries. The ICT revolution in Africa has however brought an opportunity to ease this constraint. The mobile phone-based banking services that started in Kenya urban centers have spread to rural areas and even other countries. Using these services farmers could receive funds invest in agriculture finance transactions. This study examines the awareness and use of m-banking services among rural farmers in Kenya. It also assesses the factors conditioning the use of such services. The study finds high awareness of m-banking services among the smallholder farmers. It also finds that education, distance to a commercial bank, membership to farmer organizations, distance to the m-banking agents, and endowment with physical and financial assets affect the use of m-banking services. It discusses the implications of these findings for policy and practice. |
| Keywords: | Mobile phones, m-banking services, awareness and use, smallholder farmers, Kenya, Financial Economics, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:96188&r=mfd |
| By: | Robinson, Jonathan |
| Abstract: | In many developing countries, unexpected income shocks are common, formal insurance is absent, and informal inter-household risk-sharing networks are unable to provide full insurance. An important question is therefore whether risk sharing within the household is effective. I conducted a field experiment in Western Kenya in which 142 married couples were followed for approximately 8 weeks. Every week, each individual had a 50% chance of receiving an income shock equivalent to a few days' income. Since these shocks are, by definition, small relative to lifetime income, they should not affect intra-household bargaining power and should only affect a Pareto efficient household through the pooled budget constraint. However, I find that men increase their private consumption when they receive the shock but not when their wives do, a rejection of efficiency. I present evidence that such behavior is not specific to the experiment - both husbands and wives spend more on themselves in weeks in which their labor income is higher. The results suggest that insurance is limited even within the households in this sample. |
| Keywords: | risk sharing, intra-household, efficiency |
| JEL: | O20 O12 |
| Date: | 2011–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30842&r=mfd |