Financial inclusion in India: an application of TOPSIS

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 328-351 ◽  
Author(s):  
Priyanka Yadav ◽  
Anil Kumar Sharma
Keyword(s):  
Composite Index ◽  
Financial Inclusion ◽  
Critical Parameters ◽  
Infrastructure Development ◽  
Indian States ◽  
Content Type ◽  
Factors Affecting ◽  
Secondary Sources ◽  
Order Preference ◽  
Farmer Suicides

Purpose The purpose of this paper is to combine the critical parameters used to study financial inclusion into a composite index. The idea is to rank Indian states and union territories (UTs) on the basis of this index, determine change in ranks during 2011 to 2014 and identify factors affecting high/low scores on the index. Design/methodology/approach Data for the study were collected from secondary sources published by Reserve Bank of India (RBI) and Central Statistical Organization. Applying technique of order preference by similarity to ideal solution (TOPSIS), a composite multi-dimensional index of financial inclusion (IFI) has been built by using three broad parameters of penetration, availability and usage of banking services. Factors significantly influencing scores of states/UTs on IFI were identified using multiple regression analysis. Findings The value of financial inclusion for India on composite IFI has increased by 0.045 points during the study period. Share of agriculture to state gross domestic product, literacy ratio, population density, infrastructure development and farmer suicides are significant factors affecting financial inclusion. Practical implications The multi-dimensional IFI is a useful tool to measure financial inclusion using several parameters for various states/regions. The index can also be used to compare the performance of states/regions over same/different periods. Originality/value This paper is unique in its attempt to construct multi-dimensional IFI for Indian states/UTs by applying TOPSIS. It will prove useful for future researchers by combining several aspects of financial inclusion into single index.

Banking outreach, infrastructure development and regional growth

2017 ◽  
Vol 13 (2) ◽  
pp. 114-127 ◽  
Author(s):  
Harishankar Vidyarthi
Keyword(s):  
Panel Data ◽  
Income Elasticity ◽  
Regional Growth ◽  
Composite Index ◽  
Least Square ◽  
Infrastructure Development ◽  
Indian States ◽  
Content Type ◽  
Data Framework ◽  
Long Run

Purpose The purpose of this paper is to examine the dynamics between banking penetration, infrastructure development and regional growth within a multivariate framework in 23 Indian states over the period 2000-2012. Design/methodology/approach The study employs the multivariate panel data framework to analyze the dynamics between banking penetration, infrastructure development and regional growth within the vector error correction model (VECM) framework. Findings The findings confirm the long-run equilibrium relationship between banking penetration, infrastructure and income for the panel. Long-run income elasticity of infrastructure, estimated using Panel dynamic ordinary least square, is positive, statistically significant and has a value of 0.1531. Further, results show bidirectional causality between income and aggregate infrastructure and unidirectional causality running from banking penetration to income and aggregate infrastructure in the long run. However, there is unidirectional causality running from income to banking penetration and aggregate infrastructure and from banking penetration to aggregate infrastructure in the short run. Research limitations/implications The study mainly concentrates on the 2000-2012 period and includes transportation (roadways and railways), energy (including electricity) and telecommunication as indicators for infrastructure, as the data for these sectors are easily available at the state level. Second, this study employs the panel data technique as it has a shorter data count. Practical implications In order to minimize the existing regional disparity in a developing India, national infrastructure policies should be aimed toward improving the overall access to as well as the quality of infrastructure (existing as well as newly planned). Further, widening the banking outreach at the bottom level may further help the economy as well as the infrastructure sector in mobilizing long-term finances for productive investments, in order to have a balanced, more inclusive and faster growth in the long run. Originality/value The study employs panel unit root, cointegration and Granger causality tests within the panel VECM framework to explore the dynamics among the system variables. Further, the study creates a composite index of infrastructure with principle component analysis.

Integration of Waqf towards enhancing financial inclusion and socio-economic justice in Nigeria

2020 ◽  
Vol 36 (4) ◽  
pp. 491-505
Author(s):  
Nurudeen Abubakar Zauro ◽  
Ram Al Jaffri Saad ◽  
Aidi Ahmi ◽  
Mohd Yahya Mohd Hussin
Keyword(s):  
World View ◽  
Empirical Studies ◽  
Economic Justice ◽  
Financial Inclusion ◽  
High Rate ◽  
Content Type ◽  
Secondary Sources ◽  
Financial Exclusion ◽  
Conceptual Study ◽  
High Level

Purpose This paper aims to discuss the role of Waqf as a means of enhancing financial inclusion and socio-economic justice in Nigeria. Design/methodology/approach The methodology in this paper is that the data were elicited from secondary sources such as the Al-Qur’an, Hadiths and other empirical studies in the existing literature. The Tawhidi epistemology (Islamic world view) also has been obtained to deliver better understanding on the findings. Findings The paper implores Islamic societies to take advantages of integrating Waqf to support the financing needs of disadvantaged members of the Muslims communities, especially the Muslims, dominated northern Nigeria with a high level of financial exclusion. The Waqf funds if integrated and institutionalized will support the region by making the fewer privilege members of that community-engaged thereby economically and enhancing the financial inclusion. This will also lead to economic growth and socio-economic development of Nigeria. Practical implications The paper concludes by suggesting the establishment of Waqf funds to supports the less privileged people through Islamic Microfinance as means of enhancing socio-economic justice in Nigeria’s Muslims’ communities, which is negatively affected by the high rate of financial exclusion and poverty. This paper also provides critical suggestions on the ways the integration of Waqf funds will contribute significantly towards assisting Nigeria in achieving its vision of reducing the financial exclusion rate and may foster inclusive growth and sustainable development. Originality/value This paper is a conceptual study and, therefore, limited to the content of the existing literature. Hence, the future researchers may replicate and test it empirically for a more scientific justification regarding the roles of Waqf towards enhancing financial inclusion in Nigeria.

Critical factors affecting the performance of large construction projects in developing countries

2019 ◽  
Vol 18 (3) ◽  
pp. 531-556
Author(s):  
Djoen San Santoso ◽  
Polwatta Gallage Madusha Piumal Gallage
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Qualitative Methods ◽  
Construction Projects ◽  
Local Context ◽  
Infrastructure Development ◽  
Critical Factors ◽  
Content Type ◽  
Factors Affecting ◽  
Quantitative And Qualitative Methods

Purpose This paper aims to analyse the factors affecting the performance of large construction projects in Sri Lanka. The causes, impacts and mitigations in association with the critical factors are explored and discussed. Design/methodology/approach The research focuses on the evaluation and perspectives of clients and contractors of large projects in Sri Lanka. Combined quantitative and qualitative methods were applied in this research. Initially, a questionnaire survey was conducted with clients and contractors involved in large projects to evaluate the factors affecting the performance of projects and to identify the ten most critical factors. Interviews with the clients and contractors of three large projects were conducted to examine the causes and impacts of the critical factors and the approaches used to mitigate them. Findings Significant differences in the factors were observed for more than 40 per cent of the total factors under study, the contractors assigning more weight to most of the factors than the clients. The study identified nine internal factors and one external factor as the critical factors. Of these, seven were related to the contractors, which suggested that the contractors have greater roles in defining performance. Lack of management and technical skills of the parties involved, human capacity, lack of understanding and knowledge of the local context, changes in government policies and political interference were identified as significant causes of the critical factors. Originality/value The study analysed the factors affecting the performance of large projects in Sri Lanka, which, at the time of research, had just ended a 26-year-long civil war and was pushing the construction of large projects to be competitive. The challenges faced in this effort were explored as lessons learnt that might improve the efficiency and effectiveness of infrastructure development in Sri Lanka. The combined quantitative and qualitative methods applied in this study are expected to provide new insights in the project performance research, especially the interviews of the critical factors to gain an understanding on how the factors occurred and manifested themselves in real projects. The findings are, however, expected to be applicable to other developing countries that are currently aggressively developing their large infrastructure.

scholarly journals Factors affecting pre-visit destination image: application on the Grand Egyptian Museum (GEM)

2020 ◽  
Vol 2 (3) ◽  
pp. 215-234
Author(s):  
Samia Adly Hanna El Sheikh
Keyword(s):  
Design Methodology ◽  
Destination Image ◽  
Content Type ◽  
Factors Affecting ◽  
Secondary Sources ◽  
Equation Modelling ◽  
Cultural Sites ◽  
The Impact ◽  
Self Administered Questionnaire ◽  
Practical Implications

Purpose The purpose of this study is to investigate through an empirical research the factors that would attract visitors to heritage and cultural sites as museums applied on the Grand Egyptian Museum (GEM). The paper aims to study the impact of the proposed attraction features learning/knowledge, museum facilities, fun/entertainment and socializing and accessibility/location on pre-visit destination image. Design/methodology/approach The author started by a thorough literature review to arrive to the suggested conceptual model, which is tested by adopting a quantitative approach where data were collected using a self-administered questionnaire from a convenient sample of 300 respondents with 90% response rate and used partial least squares – structure equation modelling using Smart PLS v.3.2.8. Findings The results show that three of the tested factors were accepted and one was rejected. Practical implications Management of GEM, which will be one of the biggest museums world-wide, can make use of the empirical results of this research to enhance their understanding of the factors that impact pre-visit destination image, and thus, most attract visitors to justify the budget set in this huge project and achieve highest visitation and revenue Originality/value This research deals with a new museum that has not opened its doors yet and will start functioning in late 2020, and thus, the pre-visit image of the museum is not based on previous experience of visitors but rather on secondary sources as messages sent to visitors based on attraction features, while most previous studies dealt with post-visit image of museums

NPM reforms and institutional characteristics in developing countries

2019 ◽  
Vol 9 (1) ◽  
pp. 126-147 ◽  
Author(s):  
Mouhcine Tallaki ◽  
Enrico Bracci
Keyword(s):  
Public Management ◽  
New Public Management ◽  
Implementation Process ◽  
Developed Countries ◽  
Institutional Factors ◽  
Institutional Characteristics ◽  
Content Type ◽  
Factors Affecting ◽  
Secondary Sources ◽  
New Public

PurposeThe purpose of this paper is to investigate the institutional factors affecting the reform of public sector in Morocco. In particular, this study focuses on the adoption path of one such reform, in which Moroccan municipalities had to adopt economic and development plans (EDPs).Design/methodology/approachThe paper’s methodology adopts a qualitative approach. In particular, the paper adopts a mix of primary and secondary sources to analyze the historical development of the EDP reform in the Moroccan context, and the institutional factors involved in the implementation process. It contributes to the existing literature in two ways: it defines a tentative model that combines two approaches (new and old institutional theories); and it contextualizes the proposed model in the Moroccan context by examining the institutional process of implementing the reforms.FindingsThe reform that introduced EDPs in Morocco was the result of a collaboration between the Moroccan government and international donors. The introduction of EDPs was impeded by institutional features of Moroccan society. Therefore, the implementation of EDPs in Morocco did not change taken-for-granted ways of thinking, nor did it remove institutional restrictions and barriers. Municipalities were not affected by the modernizing effects of the reform. They are managed as traditional administrative structures, with very little capacity for organizational and management innovation.Originality/valueThe paper contributes to the debate on the adequacy of new public management (NPM) in less developed countries (LDCs), and in particular with regards to the use of strategic plans in Moroccan municipalities. In doing so, the paper attempts to define a tentative framework that combines new institutional and old institutional theory. The framework proposed helps to explain how NPM in LDCs was diffused and how institutional characteristics could hamper or foster the implementation of NPM reform.

Financial Inclusion

2020 ◽  
Vol 9 (4) ◽  
pp. 33-57
Author(s):  
Anusha Goel
Keyword(s):  
Financial Services ◽  
Composite Index ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Access To Finance ◽  
Indian States ◽  
Contemporary Issue ◽  
Positive Growth ◽  
Log Linear ◽  
Over Time

Financial inclusion is a contemporary issue that has featured in the reforms agenda of several countries. Although it has gained momentum over time, the access to finance and basic financial services remained highly skewed across demographic and geographic segments. The purpose of the study is to analyse the performance of states/union territories in each dimension and composite index of financial inclusion. The focus is on ranking Indian states and union territories, identifying the major changes in ranks during 2000-01 to 2016-17, and finding the rate of expansion. The index of financial inclusion is calculated using three dimensions as per Sarma methodology. Log linear regression model is used to determine the growth rate in the measure of inclusion. The findings show that the index of financial inclusion value has enhanced in 28 and declined in four states/union territories out a group of 32 states/union territories. While a robust positive growth is observed in 23 states/union territories, the deterioration turns out to be significant in Chandigarh only.

Multi-dimensional public–private partnership readiness index: a sub-national analysis of India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sakshi Malik ◽  
Simrit Kaur
Keyword(s):  
Tamil Nadu ◽  
National Level ◽  
Composite Index ◽  
Secondary Data ◽  
Principal Component ◽  
State Level ◽  
Political Stability ◽  
Indian States ◽  
Content Type ◽  
National Analysis

Purpose Despite being a global public–private partnerships (PPPs) leader, India faces a vast PPP divide at a sub-national level, wherein a few states receive the majority of PPP projects, whereas other states face severe issues in attracting PPP investments. This necessitates the identification of factors that make some states attractive to PPP investors. The purpose of this study is to construct a “PPP readiness index” at the Indian state-level, which aims to assess the readiness of states for the diffusion of PPPs. Design/methodology/approach Using a quantitative method on secondary data, the study scores 17 Indian states on dimensions such as experience with PPPs, physical infrastructure, financial sector development, market conditions, institutional quality and political stability and fiscal constraints for each of the years during 2009–2018. Principal component analysis is used for assigning weights to the dimensions, thereby arriving at the composite index. Findings Results highlight that Tamil Nadu and Maharashtra offer the most favorable environment for PPPs to flourish. In contrast, Jharkhand and Bihar are laggards because they score the least and have limited PPP experience. Practical implications The index will assist the private sector in conducting a comparative analysis between state-specific PPP arrangements, thereby enabling them to make informed decisions prior to forging PPP arrangements. Further, the index will help the state governments in improving their PPP readiness by following the policies of the leading states. Social implications Improvement in PPP readiness of the states will enable higher PPP investments in infrastructure, thereby reducing infrastructure deficits. This, in turn, will lead to economic growth, development and an improvement in the quality of life. Originality/value To the best of the authors’ knowledge, this is the first study that comprehensively analyzes the PPP readiness at a sub-national level in India.

scholarly journals Cross-border B2C e-commerce to China

2019 ◽  
Vol 50 (3) ◽  
pp. 355-378 ◽  
Author(s):  
Maria Giuffrida ◽  
Riccardo Mangiaracina ◽  
Alessandro Perego ◽  
Angela Tumino
Keyword(s):  
Decision Theory ◽  
Theoretical Perspective ◽  
Service Level ◽  
Sensitivity Analyses ◽  
Critical Parameters ◽  
Content Type ◽  
Factors Affecting ◽  
Cross Border ◽  
Theoretical Approaches ◽  
The Impact

Purpose The purpose of this paper is to support companies’ risk-informed selection of a logistics solution to operate in China via cross-border e-commerce (CBEC). Design/methodology/approach Decision theory is applied to the recent field of CBEC. This theoretic setup involves a decision maker who must choose among a set of alternatives, whose consequences depend on uncertain factors (Savage, 1954). The study develops an activity-based model to calculate logistics costs in a deterministic setting. Simulations and probabilistic sensitivity analyses are later performed to evaluate the impact of uncertainty. Findings There are four main solutions to enter China, determined by the adopted international transport mean and the presence of a local warehouse. The most important risk factors affecting the choice of the logistics solution are change of CBEC regulation, product value, expected service level and demand level. Originality/value From a theoretical perspective, this study improves CBEC literature, so far characterised by descriptive papers, often lacking industry focus or empirical exploration. It also provides new application opportunities for decision theory, whereas previous contributions have proposed different theoretical approaches, such as transaction cost or institutional theory. From a practical viewpoint, the paper is the first to compare the costs of the main logistics solutions to sell online to China, by taking uncertainty into account. The results can be used to better understand the differences among solutions and identify the most critical parameters. Finally, this research provides some observations for policy implementation.

scholarly journals Measuring financial inclusion: a composite FI index for the developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Truc Huong Nguyen
Keyword(s):  
Developing Countries ◽  
Design Methodology ◽  
Principal Component ◽  
Financial Inclusion ◽  
Analysis Method ◽  
Content Type ◽  
Secondary Sources ◽  
Sustainable Economic Growth ◽  
Practical Implications

PurposeThe purpose of this paper is to focus on measuring financial inclusion (FI) level for the developing countries.Design/methodology/approachBy using a two-stage principal component analysis method, we construct a composite FI index to measure the degree of FI. Data are collected through secondary sources including World Bank and IMF reports for the period 2012–2018.FindingsWe have built an overall FI index which is considered as a comprehensive measure of FI, a useful tool for policymaking and policy evaluation. Comparison with other studies shows that our FI index corroborates with them.Practical implicationsBuilding a good FI measurement method is important for developing countries. It helps to assess and compare the level of FI of each country and between countries together, made easily and accurately.Originality/valueThis study emphasizes the important role of FI in the economy. From there, an FI solution is integrated into the construction and calculation of its impact on other factors. This will help policymakers to take effective measures to increase FI levels to achieve sustainable economic growth.

Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vatimetou Mokhtar Maouloud ◽  
Salina Kassim ◽  
Anwar Hasan Abdullah Othman
Keyword(s):  
Structural Equation ◽  
Financial Inclusion ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Factors Affecting ◽  
Specific Dimension ◽  
Islamic Microfinance ◽  
The Impact

Purpose This study aims to identify the involuntary barriers of financial inclusion which are affecting the usage of Islamic microfinance services in PROCAPEC institution located in Nouakchott-Mauritania. Subsequently, it also examines the effect of gender as a moderator in the model. Design/methodology/approach Primary data was collected through a cross-sectional questionnaire from 381 beneficiaries of PROCAPEC – a major Islamic microfinance provider in Mauritania. In methodology, the study uses confirmatory factor analysis to identify relevant involuntary factors affecting usage, followed by structural equation modelling to test the impact of these factors on the usage of Islamic microfinance (IsMF) products. Findings Two of the four factors are statistically significant in affecting the usage of IsMF products, namely, affordability and eligibility. Gender is a moderator in the relationship between affordability and usage, as well as eligibility and usage. Practical implications Policymakers, practitioners and managers of Islamic microfinance institutions can consider these factors and focus on strategies, including pricing and promotion, which aim to further develop the Islamic microfinance industry in Mauritania. Also, reducing documentation required from clients and adopting lenient rules to provide suitable products will enhance the use of IsMF products, which may lead to more customers’ attraction. Originality/value Although several researchers have articulated financial inclusion, this study sheds light on a specific dimension of financial inclusion to determine the factors impacting IsMF products’ usage. In Mauritania, there are few studies about microfinance. This study will be amongst the pioneer contribution to the geographical gap.

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