Sources of Capital: Nature, Constraints, and Objectives

2021 ◽  
pp. 1-33
Keyword(s):  
Sources Of Capital

Remittance and Economic Development of Nepal

Patan Pragya ◽  
2019 ◽  
Vol 5 (1) ◽  
pp. 196-208
Author(s):  
Badri Narayan Sah
Keyword(s):  
Economic Development ◽  
Household Income ◽  
Poverty Reduction ◽  
Economic Status ◽  
Poverty Rate ◽  
Daily Consumption ◽  
Gulf Countries ◽  
The World ◽  
Internal Sources ◽  
Sources Of Capital

Nepal is one of the least developed but high remittances recipient countries in the world. Nepal received remittance from US$ 8.1 billion in 2016 and it is ranked 23rd among the remittance receiving countries in the world. Remittance income is one of the major sources of capital formation in the context of Nepal. It is directly related with the labour migration in a country which in return enhances foreign employment. Remittances have become a major contributing factor to increasing household income as well as country’s GDP. About 30 percent of Nepal’s GDP comes in the form of remittance money which is sent home by Nepalese working abroad and it helps to reduce country’s poverty rate. Poverty reduction took place in Nepal from 42 percent (1995/96) to 25.2 percent (2010/11). Nepal’s remittance recipients reached 31.5 percent GDP in 2015. The total amount of remittance in the country is 259 billion and among which 20 percent is internal sources, 11 percent from India and 69 percent from Gulf countries. Remittance received by the households is mainly used for daily consumption (79 percent) and remaining other purposes. Moreover, Nepal’s economic status mostly depends on remittance received which is therefore migration driven economy.

Floating Charges—The Nature of the Security

1988 ◽  
Vol 47 (2) ◽  
pp. 213-237 ◽  
Author(s):  
Eilís Ferran
Keyword(s):  
Financial Institutions ◽  
Important Type ◽  
A Company ◽  
Sources Of Capital

Companies depend upon loan finance as one of their major sources of capital. However, banks and other financial institutions involved in the business of lending money to companies generally ensure that their exposure to the risk of non-repayment is minimised by taking security over the debtor company's property. One particularly important type of security which is available when money is lent to a company is the floating charge.

3 Sources of Funding

2019 ◽  
Author(s):  
Ransome Clive ◽  
Pridgeon Benjamin
Keyword(s):  
Public Sector ◽  
Capital Markets ◽  
Development Process ◽  
Project Finance ◽  
Export Credit ◽  
Bank Debt ◽  
Development Finance ◽  
Specific Project ◽  
Sources Of Capital

From the very beginning of the development process relating to any specific project, the project’s sponsors will continually assess and analyse the best available sources of capital for the project. The sponsors will seek to obtain funding at the lowest achievable cost; they will seek to minimize as far as practicable the sponsors’ equity contribution and will look to achieve the longest-possible debt tenors. This chapter discusses a variety of sources potentially available to sponsors pursuing a project finance funding plan. These sources include equity, equity bridge loans, subordinated shareholder debt, mezzanine debt, bank debt, Islamic project finance, capital markets, public sector lenders in project financings, export credit finance, multilateral agencies and development finance institutions, and leveraged and finance lease arrangements. The chapter concludes with an overview of the reasons for entering into, and a description of the role of, term sheets, letters of intent, commitment letters, and mandate letters.

Capital Allocation in Developing Countries

2020 ◽  
Author(s):  
Joel M David ◽  
Venky Venkateswaran ◽  
Ana Paula Cusolito ◽  
Tatiana Didier
Keyword(s):  
Adjustment Costs ◽  
Developed Countries ◽  
Business Environment ◽  
Capital Allocation ◽  
American Economic Review ◽  
Parameter Estimates ◽  
Firm Level ◽  
Capital Misallocation ◽  
Future Work ◽  
Sources Of Capital

Abstract This paper investigates the sources of capital misallocation across a group of developing and developed countries, using the empirical methodology developed in David and Venkateswaran (2019. “The Sources of Capital Misallocation.” American Economic Review 109 (7): 2531–67). The main findings are: (i) technological frictions—namely, adjustment costs and uncertainty—account for only a modest share of the observed misallocation; (ii) heterogeneity in firm-level technologies potentially explains between one-quarter and one-half, but (iii) dispersion in markups is much smaller; (iv) after accounting for these factors, on average, at least 50 percent of misallocation within each country remains unexplained, suggesting a large role for additional—potentially distortionary—factors. These factors are largely attributable to a component that is correlated with firm size/productivity and one that is essentially permanent to the firm. They exhibit strong negative correlations with income per capita and direct measures of the quality of the business environment from the World Bank Doing Business Report. The paper reports a broad set of moments describing firm-level investment dynamics and detailed parameter estimates on a country-by-country basis with an eye towards future work in this area.

MICROENTERPRISE DEVELOPMENT PROGRAM SUCCESS: A PATH ANALYSIS OF FACTORS THAT LEAD TO AND MEDIATE CLIENT SUCCESS

2007 ◽  
Vol 12 (01) ◽  
pp. 47-69 ◽  
Author(s):  
MICHELE CRANWELL SCHMIDT ◽  
JANE M. KOLODINSKY
Keyword(s):  
Development Program ◽  
Course Completion ◽  
Well Being ◽  
Financial Resources ◽  
Client Characteristics ◽  
Microenterprise Development ◽  
Program Success ◽  
Business Goals ◽  
Loan Financing ◽  
Sources Of Capital

Through a path regression analysis of data from the Vermont Micro Business Development Program, this study examines the relationships between client characteristics, program activities, interim outcomes, and impacts, to understand factors that lead to and mediate client success in microenterprise development programs and as entrepreneurs. Statistics demonstrated excellent model fit to the data. The interim outcome of improved personal well-being was related to more sources of capital, course completion, being partnered and younger. Starting a business was related to having more financial resources and mediated by improved well-being. Clients who experienced an increase in income had previous business experience and an increase in assets. Increased income was mediated by improved well-being and business start. Reduction in public assistance was related to course completion, more sources of capital, not being in poverty, and increased assets. Increased assets were related to more education, not being in poverty, and more sources of capital. Being older, more sources of capital, a larger family, and improved well-being led to job creation. Overall, access to more financial resources enabled clients to meet personal and business goals and work toward self-sufficiency. The results suggest implications for public policy regarding business training and loan financing.

Economic nature and contradictions of venture capital development in Russian economy.

10.12737/586 ◽  
2013 ◽  
Vol 1 (2) ◽  
pp. 31-39
Author(s):  
Угнич ◽  
Ekaterina Ugnich
Keyword(s):  
Venture Capital ◽  
Economic Transformation ◽  
Domestic Economy ◽  
Institutional Conditions ◽  
Russian Economy ◽  
Start Up ◽  
Social And Economic Development ◽  
Capital Development ◽  
Economic Nature ◽  
Sources Of Capital

The guarantee of steady social and economic development of the country is possible within the frameworks of dynamically developing innovative progressive economy. Venture capital is the important factor of increase in efficiency of economic transformation, achieved in many countries by means of conversion of national economy into innovative way of development. In Russia importance of the development of venture financing is connected with the fact that before the domestic economy it stands the sharpest problem of the sources of capital for the development of innovation enterprises in start-up. The impulse of development of venture capital is considered to be the resolution of contradictions which become obvious in interaction of its subjects. The resolution of contradictions of venture capital development and intensification of innovative activity depend in many respects on formed institutional conditions in the country.

scholarly journals Managing Price Risk in Volatile Grain Markets, Issues and Potential Solutions

2009 ◽  
Vol 41 (2) ◽  
pp. 353-362 ◽  
Author(s):  
Andrew M. McKenzie ◽  
Eugene L. Kunda
Keyword(s):  
Price Volatility ◽  
Price Risk ◽  
Credit System ◽  
Over The Counter ◽  
Grain Markets ◽  
Lines Of Credit ◽  
Farm Credit ◽  
Farm Credit System ◽  
Simulation Results ◽  
Sources Of Capital

During 2008 extreme price volatility in grain markets led to country elevators incurring unprecedentedly large margin calls on their futures hedges. As a result elevators' traditional liquidity sources and lines of credit were stretched to breaking point. This article explores the potential liquidity benefits of making available an Over-the-Counter Margin Credit Swap contract to grain hedgers. The swap would enable hedgers to draw upon sources of capital outside the farm credit system to provide liquidity needed to make margin calls. Simulation results clearly show that a Margin Credit Swap contract would provide significant liquidity benefits to hedgers during volatile periods.

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