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on Microfinance |
| By: | Rabeh Morrar (An-Najah National University); Fernando Rios-Avila (Levy Economics Institute of Bard College); Habib Hinn (Birzeit University) |
| Abstract: | This research investigates the factors contributing to the traditional and digital financial inclusion (FI) gender gap in Palestine and how it was shaped by the ramifications of the COVID-19 pandemic. Using secondary data from two nationwide FI surveys conducted in 2016 and 2022, the study employs an Oaxaca-Blinder decomposition and an intertemporal decomposition to analyze the changes in gender discrimination in financial literacy and access to financial services over time. Our results show a persistently high FI gender gap in 2016 and 2022. There is a worsening or unchanged FI gender gap in most aspects, including access to bank accounts, formal borrowing, and the adoption of digital financial services. Only the gender gap in access to private insurance decreased between 2016 and 2022, which is generally low in Palestine. The widening FI gender gap is driven by discrimination against women in economic participation (explained by changes in the coefficients gap), followed by changes in men's returns. The deterioration of women's socioeconomic conditions during the COVID-19 pandemic, particularly in terms of labor market participation, was the greatest contributor to the growth of intertemporal FI gender discrimination. Another contributor to the widening FI gender gap was the drop in income and employment during the pandemic, compounded by Israeli restrictions and rising political tension. Nonetheless, the gap narrows slightly over time among older individuals, indicating a positive trend for women’s FI across different age brackets. We find that household composition is pivotal in shaping the gender gap in FI, as the gap shrinks among households with a higher proportion of female members. Finally, adopting modern financial technologies may be slower among women facing barriers related to technology literacy or access to digital financial services; meanwhile, financial technology has a significant influence on the likelihood of FI, particularly favoring women. |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1734 |
| By: | Hany Navarra (Saitama University, Saitama, Japan) |
| Abstract: | Remittances, the money migrant workers send to their origin country, are now a dominant external finance source for many developing countries, often surpassing official aid and foreign direct investment inflows. While widely recognized for supporting household consumption, their role in longterm poverty reduction remains contested. This study explores whether remittances only become developmentally effective under specific financial institutional conditions. Grounded in theories of absorptive capacity and institutional complementarity, it applies a dynamic panel threshold model to test whether financial system depth conditions the poverty-reducing impact of remittance inflows. Using panel data from 96 developing countries covering the period 2002 to 2021, the analysis identifies distinct regimes of remittance effectiveness. The findings offer a structural explanation for cross-country differences in remittance outcomes and provide new insight into how financial maturity shapes the developmental role of migrant transfers. Implications are drawn for SDGs related to poverty, financial access, and remittance cost reduction. |
| Keywords: | remittances, poverty, financial development, institutional threshold, SDGs, panel data |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0562 |
| By: | Joshi, Mukta; Teh, Wen Wen; Vargas, Ariadna; Dadzie, Christabel E.; Datta, Saugato |
| Abstract: | Abstract Cash plus programs, which combine cash transfers with complementary services and interventions, have become an increasingly popular tool for providing livelihood support and poverty alleviation in low- and middle-income countries. While there is robust evidence to indicate that cash programs provide poverty relief in the short term, the impact of cash programs on productive investment behaviors and activities is less understood. This study presents the results of a cluster randomized trial that evaluates the effects of light-touch behavioral interventions to encourage saving and entrepreneurial behaviors for low-income Ghanaians participating in a multi-faceted cash plus program focused on economic inclusion. Participants received business skills training, coaching and mentoring, and a cash grant to support the initiation and expansion of their businesses. The study incorporated a suite of behavioral interventions designed to help recipients set business-related savings goals, create plans for achieving those goals, and follow through on saving towards those goals. In addition, the design included a pamphlet outlining key steps for growing or expanding a business, accompanied by a tracker to help recipients remember these steps and track progress. Drawing from a sample of 3, 109 participants, the study found that behavioral interventions significantly improved goal-setting and plan-making behaviors related to savings and consequently, increased the incidences of saving among study participants. However, the study did not find a statistically significant impact of the behavioral interventions on improving business skills. Using a cluster-randomized trial (N=3, 109), this study evaluated the effects of light-touch behavioral interventions on recipients of a multi-faceted cash plus program for economic inclusion, which included business skills training, coaching and mentoring, and a cash grant to support the initiation and expansion of businesses. Results show that the behavioral interventions, featuring goal-setting and plan-making activities, savings tools, and business practice reminders, improved goal-setting and plan-making behaviors related to savings and consequently, increased the incidence of saving. However, the interventions did not significantly improve business practices. Findings suggest that simple behavioral tools can strengthen savings behaviors and financial resilience among poo r households, complementing cash and training programs, though further research is needed on long-term effects. |
| Date: | 2025–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdnspu:207029 |