scholarly journals Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions

2021 ◽  
Vol 13 (9) ◽  
pp. 5055
Author(s):  
John Sseruyange ◽  
Jeroen Klomp
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Legal Status ◽  
Agricultural Sector ◽  
Banking System ◽  
Fe Model ◽  
Microfinance Institutions ◽  
Natural Event ◽  
Negative Effect

In this study, we explore whether microfinance institutions (MFIs) can mitigate the adverse macroeconomic consequences of natural disasters. The provision of capital immediately following a natural event is recognized as one of the necessary conditions for a fast economic recovery. However, one concern is that a large majority of natural disasters occur in developing countries where households and the private sector have only limited access to the formal banking system. As an alternative, MFIs may fill up this gap in providing liquidity in the form of microcredit. The existing evidence on how MFIs respond to disaster effects is foremost based on case and micro-level evidence. In turn, the focus of this study is more on the macro impact of MFI activities after a natural disaster. Based on the finding obtained from an OLS-FE model using an unbalanced panel considering more than 80 developing countries and emerging economies, we can conclude that natural disasters harm macroeconomic performance primarily through their effect on the agricultural sector. However, access to lending facilities from MFIs mitigates a large part of this negative effect. Moreover, the extent to which MFIs are able to mitigate these effects depends to a great extent on their nature, i.e., their organizational structure, profitability, legal status, age, and the number of clients they serve.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals Drought and Salinity in Citriculture: Optimal Practices to Alleviate Salinity and Water Stress

Agronomy ◽  
2021 ◽  
Vol 11 (7) ◽  
pp. 1283
Author(s):  
Vasileios Ziogas ◽  
Georgia Tanou ◽  
Giasemi Morianou ◽  
Nektarios Kourgialas
Keyword(s):  
Agricultural Sector ◽  
Review Paper ◽  
Cell Metabolism ◽  
High Water ◽  
Crop Productivity ◽  
Fruit Tree ◽  
Key Factors ◽  
Negative Effect

Among the various abiotic stresses, drought is the major factor limiting crop productivity worldwide. Citrus has been recognized as a fruit tree crop group of great importance to the global agricultural sector since there are 140 citrus-producing countries worldwide. The majority of citrus-producing areas are subjected to dry and hot summer weather, limited availability of water resources with parallel low-quality irrigation water due to increased salinity regimes. Citrus trees are generally classified as “salt-intolerant” with high water needs, especially during summer. Water scarcity negatively affects plant growth and impairs cell metabolism, affecting the overall tree growth and the quality of produced fruit. Key factors that overall attempt to sustain and withstand the negative effect of salinity and drought stress are the extensive use of rootstocks in citriculture as well as the appropriate agronomical and irrigation practices applied. This review paper emphasizes and summarizes the crucial role of the above factors in the sustainability of citriculture.

Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

2020 ◽  
Vol 27 (5) ◽  
pp. 749-774
Author(s):  
George Okello Candiya Bongomin ◽  
Atsede Woldie ◽  
Aziz Wakibi
Keyword(s):  
Developing Countries ◽  
Social Cohesion ◽  
Social Protection ◽  
Sub Saharan Africa ◽  
Northern Uganda ◽  
Microfinance Institutions ◽  
Content Type ◽  
Sub Saharan ◽  
Post War

PurposeGlobally, women have been recognized as key contributors toward livelihood and poverty eradication, especially in developing countries in sub-Saharan Africa. This is due to their great involvement and participation in micro small and medium enterprises (MSMEs) that create employment and ultimately economic growth and development. Thus, the main purpose of this study is to establish the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in sub-Saharan Africa, especially in Northern Uganda where physical collateral were destroyed by war.Design/methodology/approachThe data for this study were collected using a pre-tested semi-structured questionnaire from 395 women MSMEs who are clients of microfinance institutions in post-war communities in Northern Uganda, which suffered from the 20 years' Lord Resistance Army (LRA) insurgency. The Analysis of Moment Structures (AMOS) software was used to analyze the data and the measurement and structural equation models were constructed to test for the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities.FindingsThe results revealed that social cohesion significantly and positively mediate the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in Northern Uganda. The results suggest that the presence of social cohesion as a social collateral promotes microfinance accessibility by 14.6% to boost survival of women MSMEs in post-war communities where physical collateral were destroyed by war amidst lack of property rights among women. Similarly, the results indicated that social cohesion has a significant influence on survival of women MSMEs in post-war communities in Northern Uganda. Moreover, when combined together, the effect of microfinance accessibility and social cohesion exhibit greater contribution towards survival of women MSMEs in post-war communities in Northern Uganda. Indeed, social cohesion provides the social safety net (social protection) through which women can access business loans from microfinance institutions for survival and growth of their businesses.Research limitations/implicationsThis study concentrated mainly on women MSMEs located in post-war communities in developing countries in sub-Saharan Africa with a specific focus on Northern Uganda. Women MSMEs located in other regions in Uganda were not sampled in this study. Besides, the study focused only on the microfinance industry as a major source of business finance. It ignored the other financial institutions like commercial banks that equally provide access to financial services to micro-entrepreneurs.Practical implicationsThe governments in developing countries, especially in sub-Saharan Africa where there have been wars should waive-off the registration and licensing fees for grass-root associations because such social associations may act as social protection tools through which women can borrow from financial institutions like the microfinance institutions. The social groups can provide social collateral to women to replace physical collateral required by microfinance institutions in lending. Similarly, the governments, development agencies, and advocates of post-war reconstruction programs in developing countries where there have been wars, especially in sub-Saharan Africa should initiate the provision of group business loans through the existing social women associations. This may offer social protection in terms of social collateral in the absence of physical collateral required by the microfinance institutions in lending. This may be achieved through partnership with the existing microfinance institutions operating in rural areas in post-war communities in developing countries. Additionally, advocates of post-war recovery programs should work with the existing microfinance institutions to design financial products that suit the economic conditions and situations of the women MSMEs in post-war communities. The financial products should meet the business needs of the women MSMEs taking into consideration their ability to fulfil the terms and conditions of use.Originality/valueThis study revisits the role of microfinance accessibility in stimulating survival of women MSMEs as an engine for economic growth in the presence of social cohesion, especially in post-war communities in sub-Saharan Africa where physical collateral were destroyed by war. It reveals the significant role of social cohesion as a social protection tool and safety net, which contributes to economic outcomes in the absence of physical collateral and property rights among women MSMEs borrowers, especially in post-war communities.

scholarly journals The Effects of Corporate Bonds on Employment: Early Evidence from Greece

2020 ◽  
Vol 12 (2) ◽  
pp. 235-253
Author(s):  
Sotirios Karagiannis ◽  
Dimitrios Thomakos
Keyword(s):  
Corporate Bonds ◽  
Banking System ◽  
External Financing ◽  
Listed Firms ◽  
Negative Effect ◽  
The Impact ◽  
First Time ◽  
Investment Choices ◽  
Positive Effect

This study investigates the impact of corporate bonds issued by Greek listed firms on employment. Even though external financing and the effects on employment has been studied in the literature, we extend the existing literature by focusing for the first time on the specific role of corporate bonds on employment. We have collected all the relevant papers on this line of the literature and concisely report them in a table format and then use them in analyzing our results. Our empirical analysis is based on a panel dataset from 2001 to 2014 and we examine the effect of corporate bonds in the pre and post period of the Greek economic crisis, in which the banking system is vulnerable and unable to provide financing to the firms. The results suggest that corporate bonds have a positive effect on employment in the pre-crisis sample, denoting that firms hire employees and proceed to investment choices. On the contrary, during the recession, corporate bonds have a negative effect on employment. Firms reduce their costs and try to control their debt obligations by issuing corporate bonds.

scholarly journals Can Foreign Aid Dampen the Threat of Terrorism to International Trade? Evidence from 78 Developing Countries

2018 ◽  
Vol 18 (1) ◽  
pp. 32-55 ◽  
Author(s):  
Simplice Asongu ◽  
Ivo J. Leke
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Development Assistance ◽  
Transnational Terrorism ◽  
Policy Tool ◽  
Risky Investment ◽  
Trade Distribution ◽  
Negative Effect ◽  
Effective Policy

The study investigates whether development assistance can be used to crowd-out the negative effect of terrorism on international trade. The empirical evidence is based on a panel of 78 developing countries for the period 1984–2008 and quantile regressions. The following main findings are established. First, bilateral aid significantly reduces the negative effect of transnational terrorism on trade in the top quantiles of trade distribution. Second, multilateral aid also significantly mitigates the negative effect of terrorism dynamics on trade in the top quantiles of trade distributions. It follows that it is primarily in countries with above-median levels of international trade that development assistance can be used as an effective policy tool for dampening the adverse effects of terrorism on trade. Practical implications are discussed. Moreover, steps or strategies that can be adopted by managers of corporations involved in international trade are provided, inter alia: (a) the improvement in physical security in high risky places, (b) the reduction of uncertainty linked with politically risky investment environments, (c) the reduction of costs associated with investments in locations that are very likely to be impacted by terrorism, (d) the role of security consultants and (e) the enhancement of security in networks. JEL: F40, F23, F35, Q34, O40

scholarly journals The Role of Agriculture in Ensuring Food Security in Developing Countries: Considerations in the Context of the Problem of Sustainable Food Production

2020 ◽  
Vol 12 (13) ◽  
pp. 5488 ◽  
Author(s):  
Karolina Pawlak ◽  
Małgorzata Kołodziejczak
Keyword(s):  
Developing Countries ◽  
Food Security ◽  
Food Availability ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Policy Formulation ◽  
Sustainable Food ◽  
Policy Makers ◽  
Strategic Role

Ensuring food security has become an issue of key importance to countries with different degrees of economic development, while the agricultural sector plays a strategic role in improving food availability. The aim of this paper is to identify relationships between the undernourishment scale and selected characteristics describing the agricultural sector within identified clusters of developing countries. Typological groups of countries were separated using Ward’s method. It results from the analyses that the greatest problems with maintaining food security are observed in the developing countries with a high share of agriculture in their Gross Domestic Product (GDP), adverse conditions hindering agricultural production and deficient infrastructure. Based on research results desirable and tailored strategies for food security improvement in individual clusters were developed. Promoting investments in agricultural infrastructure and extension services along with adopting measures aimed at increasing the households’ purchasing power, especially those in rural areas, appear to be key drivers for improving both food availability and food access. The paper focuses not only on identifying the reasons of undernourishment, but also contributes to recognition of the most effective ways to solve the hunger problem under a country’s unique conditions. It offers a comprehensive perspective for the policy formulation in various areas world-wide, which may be of interest to scholars and policy makers.

scholarly journals Agricultural Solid Wastes: Causes, Effects, and Effective Management

2020 ◽  
Author(s):  
Isaac Oluseun Adejumo ◽  
Olufemi Adebukola Adebiyi
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Human Population ◽  
Agricultural Sector ◽  
Economic Loss ◽  
Solid Wastes ◽  
Agricultural Activities ◽  
Potential Risks ◽  
Almost All

The role of the agricultural sector in human development and economic development cannot be overemphasized. Awareness for increased agricultural production is on the increase, arising from the need to feed the ever-increasing human population. Interestingly, almost all agricultural activities generate wastes, which are generated in large quantities in many countries. However, these wastes may constitute a serious threat to human health through environmental pollution and handling them may result in huge economic loss. Unfortunately, in many developing countries where large quantities of these wastes are generated, they are not properly managed because little is known about their potential risks and benefits if properly managed. There are studies that address some of the challenges of agricultural solid wastes as well as suggestions on how they can be properly managed. In this chapter, we intend to explore the major sources of agricultural solid wastes, their potential risks, and how they can be properly managed.

scholarly journals The Role Of Islamic Banks In Yemen In Supporting Microfinance Institutions

IKONOMIKA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 121-126
Author(s):  
Abobakr Ramadhan Salem Al-Harethi
Keyword(s):  
Social Role ◽  
Close Association ◽  
Banking System ◽  
Developed Countries ◽  
Islamic Banks ◽  
Microfinance Institutions ◽  
The Social ◽  
The World ◽  
Global Financial System

Islamic banks become the best solution to the crisis of the global financial system at present.in addition, it  become  also a real player in dealing with economic crises and the financial complexities of the traditional banking system prevailing in the world today. moreover, countries and governments in both developed and developing countries have become increasingly interested in the issue of microfinance because of their close association with the development in various countries and may be interested in supporting countries and governments for microfinance by enacting the necessary laws and legislation. And the establishment of institutions and bodies specialized in financing and support these microfinance in addition to the microfinance in many developed countries have become a specialty taught in universities and specialized institutes. Scientific seminars and conferences are held in order to support and develop it so that it achieves the objectives set for it and thus meets the aspirations of society in development. This study focus on the role of Islamic banks that can play an active and influential role in generating wealth and reducing poverty through financing for Microfinance institutions where the study showed the social role of the nature of contracts in Islamic banks through which Islamic banks can be the best in Microfinance. Keywords : Islamic banks, Microfinance institutions, Yemen

scholarly journals KONTRIBUSI PEMBIAYAAN SEKTOR PERTANIAN BANK SYARIAH TERHADAP KESEJAHTERAAN PETANI DI PULAU SUMATERA PERIODE 2016-2017

2018 ◽  
Vol 7 (1) ◽  
Author(s):  
Purwanto Purwanto
Keyword(s):  
Price Index ◽  
Agricultural Sector ◽  
Banking System ◽  
National Development ◽  
Secondary Data ◽  
Positive Influence ◽  
Agriculture Sector ◽  
Exchange Value ◽  
Panel Data Regression ◽  
Negative Effect

The operation of sharia banking system in Indonesia is to support the implementation of national development in order to improve justice, togetherness, and equity of welfare from people especially farmers in Sumatera. The financing of agriculture sector is conducted by sharia banking in Sumatera in the last two years (2016-2017) has always increased. The existence of financing disbursed in the agricultural sector can improve the welfare of farmers. Farmers' welfare in this study is projected by Farmer's Exchange Value or FEV which is the ratio between the price index that is received by farmers and the price index that is paid by farmers. Therefore the purpose of this study is to test whether there is a significant and positive influence between agricultural sector financing that is conducted by BUS and UUS on the island of Sumatera 2016-2017. Second, to test whether there is a significant and positive influence between agricultural sector financing that is conducted by BPRS on the island of Sumatera 2016-2017. The type of this study is explanatory that is conducted to prove the causal relationship and to test how the influence between one variable with others. The type of data that is used is secondary data in a monthly form. This paper use panel data regression analysis to answer the research questions. The result finds that financing of the agricultural sector that is conducted by BUS and UUS on the island of Sumatera in 2016-2017 has no significant effect on the welfare (value Prob 0,6563> 0.05). This paper also finds that the agricultural financing that is conducted by BPRS in Sumatera island 2016-2017 has a negative effect on the welfare of farmers in Sumatera (value Prob 0.0004 <0.05).===============================================Beroperasinya sistem perbankan syariah di Indonesia adalah untuk menunjang pelaksanaan pembangunan nasional dalam rangka meningkatkan keadilan, kebersamaan, dan pemerataan kesejahteraan rakyat tidak terkecuali para petani di Sumatera. Pembiayaan sektor pertanian yang dilakukan perbankan syariah di Sumatera dua tahun terakhir (2016-2017) selalu mengalami peningkatan. Adanya pembiayaan yang disalurkan pada sektor pertanian maka dapat meningkatkan kesejahteraan petani. Kesejahteran petani dalam studi ini diproxykan dengan Nilai Tukar Petani atau NTP yang merupakan rasio antara indeks hargayang diterima petani dengan indeks harga yang dibayar petani. Maka dari itu tujuan dari studi ini adalah pertama menguji apakah ada pengaruh signifikan dan positif antara pembiayaan sektor pertanian yang dilakukan oleh BUS dan UUS di pulau Sumatera tahun 2016-2017. Kedua untuk menguji apakah ada pengaruh signifikan dan positif antara pembiayaan sektor pertanian yang dilakukan oleh BPRS di pulau Sumatera tahun 2016-2017.Jenis studi ini adalah eksplanatori yaitu studi yang dilakukan untuk membuktikan hubungan sebab akibat dan untuk menguji bagaimana pengaruh antara variabel satu dengan variabel. Jenis data yang digunakan adalah data skunder dalam bentuk bulanan. Adapun analisis data menggunakan analisis regresi data panel. Hasil dari studi ini adalah pertama pembiayaan sektor pertanian yang dilakukan oleh BUS dan UUS di pulau Sumatera tahun 2016-2017 tidak berpengaruh signifikan terhadap kesejahteraan petani (nilai Prob 0, 6563 > 0,05). Kedua hasil analisis membuktikan jika pembiayaan sektor pertanian oleh BPRS di pulau Sumatera tahun 2016-2017 berpengaruh negatif terhadap kesejahteraan petani di Sumatera (nilai Prob 0.0004 <0,05).

Returns to Educational Attainment in Urban Ghana: The Role of Job-to-Job Transition

2021 ◽  
pp. 146499342110034
Author(s):  
Christian S. Otchia
Keyword(s):  
Developing Countries ◽  
Educational Attainment ◽  
Vocational Education ◽  
Job Transition ◽  
Job Transitions ◽  
Final Destination ◽  
Self Employment ◽  
Negative Effect

It is well established that additional educational attainment above lower secondary yields higher returns. We find that these returns are mediated by the job transitions, especially for individuals with vocational education. We then study whether the job-to-job transition explains the differences in the returns to educational attainment and find evidence of positive returns of the movement from employee to self-employed. We show that successful employee voluntary move to self-employment to maximize their earnings, while early spell of self-employment tends to have a lasting negative effect on earnings. Our analysis partially explains why self-employment is the top final destination for many workers in developing countries.

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