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on Microfinance |
| By: | Emmanuel, Bukuwa Nambale |
| Abstract: | To promote savings groups (SGs), which are important in promoting financial inclusion among smallholders, it is imperative to understand the factors that affect participation in these SGs and the associated impact in the context of Uganda. This study determined the factors influencing participation in SGs. The study put particular emphasis on the use of SGs as a form of fully-fledged financial services provision to access agro-inputs. The study, therefore, additionally, determined the impact of these SGs on the expenditure on agro-inputs. The study used data collected through a cross-sectional survey from 249 participants. These participants were drawn from Sironko district, Uganda, East Africa. The study employed a Probit model to investigate the determinants of participation and intensity of participation. To estimate the impact of SGs on expenditure on agro-inputs, average treatment effects on the treated (ATT) were calculated after discounting the selection bias between the SGs’ members and nonmembers. Averagely, SGs incurred 40% of all expenditure on Agro-inputs by SGs’ members. SGs’ members were significantly higher than non-members as regards total expenditure on agroinputs, per capita expenditure on agro-inputs, and proportion of income spent on agro-inputs. ATT was insignificant and tends to be negative. The main factors that significantly and positively influenced participation included the sex of the head of the household, having a child in secondary school, the number of years in education, the number of dependents, income (in a quadratic form), activity in non-SGs group settings., trusting members in the SGs, and satisfaction with loan amounts accessible from the SGs. The main factors that significantly but negatively influenced participation include agriculture as a v main income source and requirement for support to participate in the SG. Within SGs, being female; number of dependents; receiving a government subsidy; share-out of savings between January and March; and frequency of getting SGs loans the previous year increased the frequency of getting loans. The frequency decreased for participants who were active in RoSCAs and had agriculture as their main source of income. Savings were encouraged by years in education; income and activity in non-SGs group settings. Savings lowered when the participant was female; rented farming land; active in RoSCAs; required support to participate in SGs; share-out of savings between January to March; and the number of loan sources. Important factors that can be addressed at policy level include support for the SGs in the form of training members in SGs’ models, adding to the loans pools; and encouraging activity in any community group setting. |
| Keywords: | Consumer/Household Economics, Agricultural Finance |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cmpart:334746&r=mfd |
| By: | Alireza Naghavi (University of Bologna); Mohsen Shaeyan (Johannes Gutenberg University Mainz) |
| Abstract: | Qanats – traditional Persian irrigation systems first built around 1000 B.C. – required a complex of cooperative local institutions for their construction and maintenance. We show that these institutions produced a (local) culture of cooperation in Iran that persists to the present day when qanats are no longer of economic value. We use unique geo-coded data on qanat coordinates in Iran together with information collected and digitized on cooperative enterprises and find a positive relationship between qanat locations and cooperative activities today. We build an IV using grid-level geological preconditions necessary for the construction and functioning of qanats: gently sloped terrains and intermediate clay content. The cooperation culture persists particularly close to historical trade routes and in areas with stable climatic conditions. The results hold for alternative proxies of social capital, namely the degree to which people trust their neighbours and the pervasiveness of charity-based Islamic microfinance establishments. |
| Keywords: | Irrigation, Cooperation, Qanat, Cooperatives, Social capital, Trade routes, Culture, Persistence |
| JEL: | N55 O13 O53 Q13 Q15 Z10 D70 |
| Date: | 2023–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:jgu:wpaper:2307&r=mfd |
| By: | Kraemer-Eis, Helmut; Botsari, Antonia; Gvetadze, Salome; Lang, Frank; Torfs, Wouter |
| Abstract: | This working paper provides an overview of the main markets relevant to the EIF, thereby documenting the impact of the current inflationary environment, the war in Ukraine and the aftermath of the pandemic on the SME financing environment. The publication first discusses the general market environment and then covers the markets for SME equity and debt products. In addition, it focuses on a number of thematic policy areas that are of particular interest to the EIF, such as Inclusive Finance, Fintech and Green finance & investment. |
| Keywords: | SMEs, SME financing, private equity, bank guarantee, microfinance, financial technology, sustainable investment, Europe |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202284&r=mfd |
| By: | Admkew Haile |
| Abstract: | The reviewed literature articles are studies related to sub-Saharan African agribusiness, finance and value chain financing published since 2016–2022 to provide insights and information on barriers and prospects of agribusiness financing in sub–Saharan Africa. The review is concerned on identifying and understanding the barriers faced by the agribusiness firm, who seek financing for agribusiness activities, who would provide it, and who would invest in agribusiness. It also identifies prospects for addressing critical barriers that can help close the financing gap in agribusiness. Agriculture and agribusiness are identified as a potential and turning points for African economic transformations and developments. Agribusiness in Africa is suffering from financial access and service despite its economic contributions to the regions. Despite, the significant need for working and investment capital, many value chain actors faced difficulties getting access to financing from formal sources, and the few who do find it mostly inadequate. Difficulties accessing finance and financial services are prevalent, with lending to agribusiness and affordable access to other financial services lagging far behind other sectors of the economy. The reliance on collateral and number of documents required discriminates against many small and medium agribusiness firms, who may have viable businesses but do not have the assets. The restrictions on access to finance for agribusiness, banks and some other financing institutions are starting to grow their agribusiness investment and their number of branches to rural areas where such needs are high is considered as a positive prospect for agribusiness finance accessibilities. The growing of urban food markets driven mainly by income growth and rapid urbanization are creating need for high-value agribusiness products, new supply chains, and supporting services in the agribusiness industry. The new jobs and income prospects created by this growth can significantly contribute to Africa’s economic transformation and development. However, to take advantage of these growth opportunities, Sub-Saharan Africa needs to close the agribusiness financing gap. Key words: Agribusiness, Finance Access, Barriers, Financing, Prospects, Sub-Saharan Africa |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2023-45-07&r=mfd |
| By: | Pavlova, Elitsa; Gvetadze, Salome |
| Abstract: | This working paper examines the current academic literature on access to finance for female entrepreneurs and female-led enterprises. It covers two main financing markets: credit and venture capital (VC). The paper finds wide consensus in the academic field that gender-related credit and VC gaps exist in Europe. It also collects some of the most prominent empirical findings with respect to the gender imbalance in the European credit and VC markets during the last decade. This suggests an important role for gender-smart policy interventions at EU-level through the use of both equity and debt financing instruments. |
| Keywords: | Finance, Gender bias, small businesses |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202287&r=mfd |
| By: | Sergey V. Chernenko; Nathan Kaplan; Asani Sarkar; David Scharfstein |
| Abstract: | Numerous studies of the Paycheck Protection Program (PPP), which provided loans to small businesses during the COVID-19 pandemic, have documented racial disparities in the program. Because publicly available PPP data only include information on approved loans, prior work has largely been unable to assess whether these disparities were driven by borrower application behavior or by lender approval decisions. In this post, which is based on a related Staff Report and NBER working paper, we use the Federal Reserve’s 2020 Small Business Credit Survey to examine PPP application behavior and approval decisions and to study the strengths and limitations of fintech lenders in enhancing access to credit for Black-owned businesses. |
| Keywords: | discrimination; racial disparities; Paycheck Protection Program (PPP); bank lending; FinTech Lending; administrative burden; inequality |
| JEL: | G01 G21 G23 G28 |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:96273&r=mfd |
| By: | Ofentse, Goetswamang Phankie |
| Abstract: | Maize is an important source of food consumed in Botswana and it helps the country to achieve food security status. Food security refers to everyone always having access to healthy, dependable, and adequate food to meet their dietary requirements and live a healthy life. Botswana imports maize primarily from South Africa and is a net importer. The study evaluated how maize prices in Botswana are linked with maize prices in South Africa. To explain hedging opportunities in minimising price risk in Botswana, cointegration and vector error correction models were used in this study. Secondary data on monthly white and yellow maize prices from 2008 to 2019 were used in this study. The empirical data show that maize prices in South Africa and Botswana have a long-run equilibrium relationship. In the short run, results indicate that the previous years’ maize prices in the Botswana market positively impact all Botswana maize prices at a 1% significance level on average ceteris paribus. South Africa’s maize market does not respond to any market changes in Botswana for white maize prices lagged for one and two periods. The Botswana maize market, on the other hand, reacts to price fluctuations in the South African market for both white and yellow maize. The adjustment speed in the Botswana maize market ranged from 17% to 29% while the adjustment speed in the South African market ranged from 13% to 17%. Overall, the empirical data show that the two markets have a positive long-run equilibrium relationship and a shortrun asymmetric relationship. The empirical findings prompted the Botswana maize value chain assessment to understand how it operates as well as the existence of relationships among the actors. The study ascertained that Botswana’s maize value chain faces an array of challenges that limit the country’s food sufficient. The assessment of the Botswana maize value chain was vital to promote policy formations that will promote the development of the Botswana maize sector. The study focused on the interaction between smallholder farmers and the intermediaries focusing on the challenges and opportunities therein. The Agency and Social Network theories were used to assess the economic behaviour of the two farmers and middlemen. The investigative methods used included a thorough assessment of the literature and key informant interview. The challenges identified from the investigation included poor coordination, lack of trust, information asymmetry, lack of cooperatives, and inadequate access to finance. The study thus recommended contract farming, prioritisation of training programmes for farmers and extension workers, third-party enforcement of regulations, and revival of cooperatives to III improve the quality of the relationship between the middlemen and the smallholder farmers, and thus improve the overall performance of the chain. |
| Keywords: | Marketing |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cmpart:334751&r=mfd |
| By: | Amare, Mulubrhan; Balana, Bedru |
| Abstract: | This paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural productivity, income shares, crop mix, and input use decisions. We measure climate change in harmful degree days, growing degree days, and changes in precipitation using long-term (30 year) changes in temperature and precipitation anomalies during the crop calendars. We find that, controlling for other factors, a 15 percent (one standard deviation) increase in change in harmful degree days leads to a decrease in agricultural productivity of 5.22 percent on average. Similarly, precipitation change has resulted in a significant and negative impact on agricultural productivity. Our results further show that the change in harmful degree days decreases the income share from crops and nonfarm self-employment, while it increases the income share from livestock and wage employment. Examining possible transmission channels for this effect, we find that farmers change their crop mix and input use to respond to climate changes, for instance reducing fertilizer use and seed purchases as a response to increases in extreme heat. Based on our findings, we suggest policy interventions that incentivize adoption of climate-resilient agriculture, such as small-scale irrigation and livelihood diversification. We also propose targeted pro-poor interventions, such as low-cost financing options for improving smallholders’ access to climate-proof agricultural inputs and technologies, and policy measures to reduce the inequality of access to livelihood capital such as land and other productive assets. |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; household surveys; data; spatial data; temperature; precipitation; climate change; agricultural productivity; income; crops; inputs; nonfarm income; livestock; policies; irrigation; diversification; finance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2185&r=mfd |