nep-mfd New Economics Papers
on Microfinance
Issue of 2015‒10‒04
two papers chosen by
Olivier Dagnelie
Université de Namur

  1. Oral democracy and women?s oratory competency in Indian village assemblies : a qualitative analysis By Sanyal,Paromita; Rao,Vijayendra; Prabhakar,Umang
  2. Mobile Money, Trade Credit, and Economic Development: Theory and Evidence By Beck, Thorsten; Pamuk, Haki; Ramrattan, Ravindra; Uras, Rasim Burak

  1. By: Sanyal,Paromita; Rao,Vijayendra; Prabhakar,Umang
    Abstract: In democracies, innovative political institutions have opened up scope for direct public participation often in the form of talk: citizens talking to the state and mutual talk among citizens on matters concerning community development. A prominent example is the Indian gram sabha, or village assembly, which occurs in a highly stratified context. This paper undertakes a talk-centered analysis of the gram sabha with a focus on examining the oral participation of women in general and women affiliated with microcredit self-help groups who have access to an associational life. The qualitative analysis of 255 gram sabha transcripts from four South Indian states finds that women associated with microcredit self-help groups employ a wider variety of narrative styles and utilize a more multilayered structure to convey their messages compared with all women taken together. Thus, the difference is not so much in the numerical instances of talking or in the types of issues raised, but rather in the quality of participation. The paper makes an important theoretical contribution by proposing the concept of oral democracy as an alternative to deliberative democracy, and urges an analytical focus on the oral or oratory competency of subordinated groups as they participate in these important institutions.
    Keywords: Parliamentary Government,Access to Finance,National Governance,Governance Indicators,Primary Education
    Date: 2015–09–21
  2. By: Beck, Thorsten; Pamuk, Haki; Ramrattan, Ravindra; Uras, Rasim Burak
    Abstract: Using a novel enterprise survey from Kenya (FinAccess Business), we document a strong positive association between the use of mobile money as a method to pay suppliers and access to trade credit. We develop a dynamic general equilibrium model with heterogeneous entrepreneurs, imperfect credit markets and the risk of theft to account for this empirical pattern. Mobile money dominates fiat money as a medium of exchange in its capacity to avoid theft, but comes with higher transaction costs. The interaction between risk of theft and limited access to trade credit generates demand for mobile money as a payment method with suppliers and the use of mobile money in turn raises the value of a credit relationship and hence the willingness to apply for trade credit. Calibrating the stationary equilibrium to match a set of moments that we observe in Kenyan FinAcces enterprise survey data and quantifying the importance of the endogenous interactions between mobile money and trade credit on entrepreneurial performance and macroeconomic development, we find that the availability of the mobile money technology increases GDP by 0.33-0.47%.
    Keywords: Kenya; mobile money; small business finance; trade credit
    JEL: D14 G21 O12 O16
    Date: 2015–09

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