nep-mfd New Economics Papers
on Microfinance
Issue of 2018‒11‒19
five papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Microcredit as an important instrument for the development of rural areas. Region of Shkodra By Armalda Reci
  2. You are Approved! Insured Loans Improve Credit Access and Technology Adoption of Ghanaian Farmers. By Mishra, K.
  3. The Impact of Microcredit on Farms and Rural Household: A Literature Review of Experimental Studies By Kotchikpa Gabriel Lawin; Lota Dabio Tamini; Ibrahima Bocoum
  4. Recent finance advances in information technology for inclusive development: a systematic review By Simplice Asongu; Jacinta Nwachukwu
  5. The Feasibility of Picture-Based Crop Insurance (PBI): Smartphone Pictures for Affordable Crop Insurance By Ceballos, F.; Kramer, B.; Robles, M.

  1. By: Armalda Reci (Credins Bank)
    Abstract: Microfinance and in particular micro-credit has become a very important topic in global poverty reduction debates. It has become very popular the idea thet the "access in microcredits" helps poor families. Families start a micro-entrepreneurship that will enable them to improve their income and ultimately in reduction of poverty. So far the results of the research have been scarce, and most have been contested.The objective of this paper is to evaluate the impact of microcredits on family income and to identify the difficulties of poor families after the access to microcredit.The study is an experimental case of rural areas of Shkoder region where are analyzed the families participating in microcredit programs and non-participating, which will be observed by the time.Microcredit analysis integrated by the time, the microcredit impact on household income is expected to be positive and to have a significant impact on household income. The study is based on the data collected by 200 questionnaires distributed in the rural areas of Shkoder region.The new paper argues that providing affordable financial services to the rural population, microcredit remains to be an important strategic component of development. On the other hand, what this paper provides is the need to create new microfinance institutions that support their role in accumulation and wealth creation for their clients.
    Keywords: Microcredit, sustainable development, strategic development, rural development, lending.
    Date: 2018–10
  2. By: Mishra, K.
    Abstract: Increasing agricultural efficiency via technology adoption is high-priority among development practitioners. One potential tool for furthering this objective is using drought index insurance to increase access to credit. Accordingly, the objective of this paper is to investigate whether coupling agricultural loans with micro-level and meso-level drought index insurance can stimulate the demand and supply of credit and increase technology adoption. To this end, in partnership with 14 rural banks and the Ghana Agricultural Insurance Pool, we implemented a randomized control trial in northern Ghana that targeted maize farmers organized in credit groups. Our empirical analysis indicates that on the demand side, coupling loans with micro-insurance increases the likelihood of loan application for female farmers, potentially because of the payouts being directly made to them and a lack of trust in the bank. In contrast, coupling loans with meso-insurance increases the likelihood of loan application for those farmers who place the highest trust in the bank. On the supply side, coupling loans with meso-insurance increases the likelihood of loan approval, but with a larger impact for males. Overall, our results indicate that insured loans hold significant promise for expanding credit access and technology adoption among smallholder farmers. Acknowledgement : This research was partly funded by a USAID/BASIS grant. We are grateful to the participants in the 2015 BASIS technical Meeting at UC Berkley and the PhD Seminar in Agricultural, Environmental, and Department Economics at the Ohio State University for their feedback. The usual disclaimer applies.
    Keywords: Agricultural Finance
    Date: 2018–07
  3. By: Kotchikpa Gabriel Lawin; Lota Dabio Tamini; Ibrahima Bocoum
    Abstract: In this article, we review the literature on the best ways to identify the causal effects of microcredit, present, and discuss some empirical results of the impact of microcredit on the adoption of innovations, investments, farm incomes, and profits. The results of empirical studies converge toward a positive impact of access to microcredit on the adoption of agricultural technology and investment. In terms of the effect on the technical efficiency of farms, agricultural income and profit, and consumption, the results do not all point in the same direction. The effects of microcredit are likely to vary depending on the context of the study.
    Keywords: Microcredit,Experimental Studies,Causal Effects,Farms,Rural Households,
    JEL: C68 C82 D58 R13 R15
    Date: 2018–04–03
  4. By: Simplice Asongu (Yaoundé/Cameroon); Jacinta Nwachukwu (Preston,United Kingdom)
    Abstract: The overarching question tackled in this paper is: to what degree has financial development contributed to providing opportunities of human development for those on low-incomes and by what information technology mechanisms? We systematically review about 180 recently published papers to provide recent information technology advances in finance for inclusive development. Retained financial innovations are structured along three themes. They are: (i) the rural-urban divide, (ii) women empowerment and (iii) human capital in terms of skills and training. The financial instruments are articulated with case studies, innovations and investment strategies with particular emphasis, inter alia on: informal finance, microfinance, mobile banking, crowdfunding, microinsurance, Islamic finance, remittances, Payment for Environmental Services (PES) and the Diaspora Investment in Agriculture (DIA) initiative.
    Keywords: Finance; Inclusive Growth; Economic Development
    JEL: G20 I10 I20 I30 O10
    Date: 2018–01
  5. By: Ceballos, F.; Kramer, B.; Robles, M.
    Abstract: This paper describes and tests the feasibility of Picture-Based Crop Insurance (PBI), a new way to deliver affordable and easy-to-understand insurance. Under PBI, loss assessments are based on damage visible from a time-series of pictures taken by the farmer using regular smartphones. PBI aims at boosting uptake, trust, and understanding of insurance by reducing basis risk as well as costs of and delays in loss assessment, and by engaging farmers to participate directly, with one s own pictures being more tangible than other indices. Results from a pilot implementation in the rice-wheat belt of India speak to PBI being a feasible and valuable alternative to existing insurance products. Damage is visible from smartphone pictures, farmers can take pictures of sufficient quality for loss assessment, and PBI helps reduce severe downside basis risk at minimal cost. Acknowledgement : We gratefully acknowledge Braulio Britos and Matt Krupoff for excellent research assistance; and Azad Mishra, Siddhesh Karekar, Dr. Mann S. Toor, Koen Hufkens, Michael Mann, and Eli Melaas. We received valuable suggestions from participants at G ttingen University, PARM K-Sharing and Learning Workshop; IPA s 3rd Annual Researcher Gathering on Financial Inclusion and Social Protection; CEAR Academic Pre-Conference in Microinsurance; and the Regional Dialogue on The Role of Agricultural Research in the Design, Implementation, and Evaluation of Agricultural Insurance. Funding support was provided by the CGIAR Research Program on Policies, Institutions, and Markets (PIM) and the International Initiative for Impact Evaluation (3ie).
    Keywords: Risk and Uncertainty
    Date: 2018–07

This nep-mfd issue is ©2018 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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