What Role Does Financial Inclusion Play for Poverty Reduction? Empirical Evidence From The Indian States in the Post-Liberalization Era

2021 ◽  
Author(s):  
Rajesh Barik ◽  
Sanjaya Kumar Lenka
Keyword(s):  
Poverty Reduction ◽  
Urban Poverty ◽  
Random Effect ◽  
Principal Component ◽  
Financial Inclusion ◽  
Least Square ◽  
Indian States ◽  
Pca Method ◽  
Using Data ◽  
The Impact

Abstract The paper tries to analyzes the effect of financial inclusion on poverty reduction among 28 Indian states and rural-urban as well. Using data from 28 Indian states over the period of 1993 to 2015, this study constructed a single financial inclusion index through Principal Component Analysis (PCA) method, which signifies the state-wise variation in financial inclusion services. Furthermore, this study uses Fixed Effect, Random Effect, Panel Corrected Standard Errors, Feasible General Least Square, and Hausman-Taylor Regression model to know the impact of financial inclusion on state-wise poverty reduction and rural-urban poverty reduction as well. The results of this study suggest that financial inclusion has a negative and significant effect on state-wise and rural-urban poverty reduction respectively. With regards to the control variables, this study finds that variables like social sector expenditure, per capita state GDP and capital receipt are negatively associated with all three categories of poverty (i.e., overall poverty and rural-urban poverty) whereas the rural population is positively associated.

Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

2020 ◽  
Vol 47 (11) ◽  
pp. 1345-1362
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Random Effect ◽  
Secondary Data ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Least Square ◽  
African Countries ◽  
Content Type ◽  
The Impact ◽  
Control Of Corruption

PurposeThe purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.Design/methodology/approachThe study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.FindingsThe author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.Practical implicationsThe finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.Originality/valueThis study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.

The Impact of Financial Inclusion on Poverty Reduction

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Huong Thi Thanh Tran ◽  
Ha Thi Thu Le
Keyword(s):  
Poverty Reduction ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Principal Component ◽  
Financial Inclusion ◽  
Factors Affecting ◽  
Global Issue ◽  
Negative Effect ◽  
The Impact

Abstract Poverty is a global issue and a lot of attention and efforts of the international community have been made to deal with this problem. Especially in the context of the COVID-19 pandemic, when a part of the population could fall into poverty due to rising unemployment and income deduction, identifying the factors affecting poverty becomes particularly important. Financial inclusion has been recognized as one important factor affecting poverty reduction. This research is conducted to investigate the impact of financial inclusion and other control variables on poverty reduction. The study employs Principal Component Analysis (PCA) to build a financial inclusion index. Using 2SLS and the GMM regressions for a panel data of 29 European countries during the period from 2011 to 2017, the results show that financial inclusion has a negative impact on poverty at all three poverty lines of USD1.9, 3.2, and 5.5 per day. The proportion of the population aged 15–64 and the ratio of service employment to the total number of employment also have a negative effect on all three levels of POV1.9, POV3.2, and POV5.5. In contrast, GDP per capita, trade openness and the proportion of the population aged from 25 with at least secondary school education have a positive impact on poverty at three levels of poverty. The results confirm that financial inclusion plays an important role in reducing poverty. The study provides a number of recommendations to governments to promote financial inclusion and reduce poverty in the countries.

Financial inclusion in Africa: does it promote entrepreneurship?

2020 ◽  
Vol 12 (4) ◽  
pp. 687-706 ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
World Bank ◽  
Random Effect ◽  
Financial Inclusion ◽  
Least Square ◽  
African Region ◽  
African Countries ◽  
Ongoing Debate ◽  
Content Type ◽  
Development Indicators ◽  
The Impact

Purpose Financial inclusion policy focuses on bringing the less privileged groups into the formal financial system. Financial inclusion has a lot of benefits in the society. It can reduce the level of poverty, inequality and encourage business startup. This study aims to examine the impact of financial inclusion on entrepreneurship in selected African countries. Design/methodology/approach This paper examines how financial inclusion impacts entrepreneurship in 13 selected African countries using data from World Bank Development Indicators, IMF’s International Financial Statistics, doing business and World Bank Entrepreneurship Survey for the period of 2005-2016. It uses panel data regression techniques such as random effect, IV estimation and robust least square. Findings The results show that financial inclusion has a significant and positive effect on entrepreneurship in Africa. This result is robust to both alternative measures of financial inclusion and alternative estimators. Originality/value The possible relationship between financial inclusion and entrepreneurial development has been an ongoing debate in other developing countries. However, this issue has been neglected in the African region. There are little or no evidence to support the possible relationship in Africa. This paper makes an important contribution in this respect and further provides insightful information in the ongoing debate.

scholarly journals PENGARUH PENYEDERHANAAN STRUKTUR TARIF CUKAI SPESIFIK TERHADAP KONSUMSI ROKOK

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Nur Indah Lestari
Keyword(s):  
Panel Data ◽  
Random Effects ◽  
Random Effect ◽  
Random Effect Model ◽  
Rate Structure ◽  
Price Increases ◽  
Using Data ◽  
Structure Simplification ◽  
The Impact ◽  
Unbalanced Panel Data

ABSTRACT:  This study is conducted to estimate the impact of the increase in regular and specific excise rates structure simplification on cigar's consumption through its price. Using data in 2015 and applying random effect model for unbalanced panel data on Sigaret Kretek Mesin-type and Sigaret Kretek Tangan-type of the cigar, this study compares the impact of price increases due to both specific excise rate structure simplification and regular increase on the excise rate in cigar’s consumption. The results indicate that increase in the specific excise rate structure simplification has a lower impact on raising cigar’s prices than regular excise rate increases. Furthermore, the impact of price increases due to the specific excise rate structure simplification is greater in reducing cigar’s consumption than the price increases due to regular excise rate increases. In addition, it is found that the average price of Sigaret Kretek Mesin-type is lower and has an average consumption that is much higher than Sigaret Kretek Tangan-type. Overall, this result suggests that the specific excise rate structure simplification's policy should be continued in order to reduce cigar's consumption.Keywords: specific excise rate structure simplification, cigar’s consumption, random effects modelABSTRAK:  Penelitian ini dilakukan untuk mengetahui pengaruh kenaikan tarif cukai biasa maupun spesifik terhadap konsumsi rokok melalui harga jual ecerannya. Rokok yang digunakan adalah rokok jenis Sigaret Kretek Mesin (SKM) dan Sigaret Kretek Tangan (SKT). Dengan menggunakan data tahun 2015 dan menerapkan random effect pada unbalanced panel data, penelitian ini membandingkan pengaruh kenaikan harga jual eceran akibat penyederhanaan struktur tarif cukai spesifik dan kenaikan tarif cukai biasa terhadap konsumsi rokok. Hasil penelitian menunjukkan bahwa penyederhanaan struktur tarif cukai spesifik berpengaruh lebih rendah terhadap kenaikan harga jual eceran rokok dibandingkan dengan akibat kenaikan tarif biasa. Lebih lanjut, pengaruh kenaikan harga jual eceran akibat penyederhanaan struktur tarif cukai spesifik lebih besar dalam mengurangi konsumsi rokok dibandingkan kenaikan harga jual eceran akibat kenaikan tarif cukai biasa. Selain itu ditemukan bahwa harga jual eceran rata-rata rokok jenis Sigaret Kretek Mesin (SKM) lebih rendah dan mempunyai rata-rata konsumsi yang jauh lebih tinggi dibandingkan rokok jenis Sigaret Kretek Tangan (SKT). Secara menyeluruh, temuan ini menyarankan agar kebijakan penyederhanaan struktur tarif cukai perlu dilanjutkan karena efektif untuk mengurangi konsumsi rokok. Kata kunci: Penyederhanaan struktur tarif cukai spesifik, konsumsi rokok, random effects model.   

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

Immiserizing Growth and Poverty Dynamics: An Assessment of Twelve Indian States

2019 ◽  
pp. 146-175
Author(s):  
Vidya Diwakar ◽  
Andy McKay ◽  
Andrew Shepherd
Keyword(s):  
Growth Performance ◽  
Human Development ◽  
Poverty Reduction ◽  
The State ◽  
Income Growth ◽  
Panel Survey ◽  
Poverty Dynamics ◽  
Indian States ◽  
Chronic Poverty ◽  
Using Data

This chapter reconsiders the extent to which recent impressive growth performance in India has been associated with poverty reduction, using data collected by the Indian Human Development Surveys, a panel survey conducted in 2004/5 and 2010/11. The panel nature of the survey allows us to link income growth to poverty dynamics, and in particular to movements into and out of poverty as well as chronic poverty. While the overall story in India over this period is one of impressive poverty reduction, the data also reveal some cases of immiserizing growth. This chapter seeks to understand the nature and factors underlying immiserizing growth for the state of Chhattisgarh.

scholarly journals The impact of credits to the private sector and FDI on the economic growth in ASEAN

2020 ◽  
Vol 3 (4) ◽  
pp. 343-351
Author(s):  
Dang Van Cuong
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Random Effect ◽  
Estimation Method ◽  
Least Square ◽  
Fdi Inflows ◽  
Asean Countries ◽  
The Impact

The paper examines the impact of credits to private sector and foreign direct investment (FDI) flows on the economic growth of ASEAN countries in the period 1995-2017. The paper also validates the capital spread of FDI inflows to economic growth through credits to private sector. Using fixed effect estimation method (FEM), random effect (REM) and generalized least square (GLS) for panel data, we found that FDI inflows are positvely correlated with the economic growth of the ASEAN countries. This once again confirms the role of FDI in promoting the economic growth as evidenced in previous studies. Meanwhile, credits to private sector exert a negative impact on the economic growth in these countries which is an interesting finding given that few studies yield a similar result. To assess the spillover effect of FDI to growth through credits to private sector, we augment our model with a variable that reflects the interaction between credits to private sector and FDI. This variable is negative and statistically significant, suggesting that FDI is yet to show its positive impact on growth through spreading capital to credits to privatte sector.

scholarly journals Challenges in estimating the impact of vaccination with sparse data

2018 ◽  
Author(s):  
Kayoko Shioda ◽  
Cynthia Schuck-Paim ◽  
Robert J. Taylor ◽  
Roger Lustig ◽  
Lone Simonsen ◽  
...  
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Simulation Analysis ◽  
Principal Component ◽  
Population Level ◽  
Series Data ◽  
Synthetic Control ◽  
Vaccine Impact ◽  
Pca Method ◽  
The Impact

ABSTRACTBackgroundThe synthetic control (SC) model is a powerful tool to quantify the population-level impact of vaccines, because it can adjust for trends unrelated to vaccination using a composite of control diseases. Because vaccine impact studies are often conducted using smaller subnational datasets, we evaluated the performance of SC models with sparse time series data. To obtain more robust estimates of vaccine effects from noisy time series, we proposed a possible alternative approach, “STL+PCA” method (seasonal-trend decomposition plus principal component analysis), which first extracts smoothed trends from the control time series and uses them to adjust the outcome.MethodsUsing both the SC and STL+PCA models, we estimated the impact of 10-valent pneumococcal conjugate vaccine (PCV10) on pneumonia hospitalizations among cases <12 months and 80+ years of age during 2004-2014 at the subnational level in Brazil. The performance of these models was also compared using simulation analyses.ResultsThe SC model was able to adjust for trends unrelated to PCV10 in larger states but not in smaller states. The simulation analysis confirmed that the SC model failed to select an appropriate set of control diseases when the time series were sparse and noisy, thereby generating biased estimates of the impact of vaccination when secular trends were present. The STL+PCA approach decreased bias in the estimates for smaller populations.ConclusionsEstimates from the SC model might be biased when data are sparse. The STL+PCA model provides more accurate evaluations of vaccine impact in smaller populations.

scholarly journals Sensitivitas Produksi Padi Terhadap Perubahan Iklim Di Indonesia Tahun 1974-2015

Agro Ekonomi ◽  
2016 ◽  
Vol 27 (2) ◽  
pp. 183 ◽  
Author(s):  
Yanti Nurhayanti ◽  
Moko Nugroho
Keyword(s):  
Climate Change ◽  
Turning Point ◽  
Random Effect ◽  
Estimation Method ◽  
Secondary Data ◽  
Maximum Temperature ◽  
Average Temperature ◽  
Simple Simulation ◽  
Using Data ◽  
The Impact

The occurrence of climate change disrupts the productivity of paddy in Indonesia. Disruption of the paddy’s production has an impact on the availability of foodstuffs, considering paddy as staple food Indonesia society. This study aims to analyze the impact of climate change on productivity of paddy in the central acreage of paddy in period 1974-2015 by using four different climate variables. The data used are secondary data collected from Agency of Central for Statistics (BPS), Ministry of Agriculture, and National Oceanic and Atmospheric Administration (NOAA). Estimation method using data panels with Random Effect models (REM). The results showed the productivity of paddy in Indonesia are more sensitive to changes in rainfall and maximum temperature (Tmax) compared to the average temperature (Tave) and the minimum temperature (Tmin). Increased rainfall and Tmax positively impact the productivity of paddy until a specific turning point, then after that point will give the opposite impact. As for the turning point for the precipitation of 10,177 Inc./year, while Tmax on 31,35 °C. Simple simulation results demonstrate the increase in rainfall in the upper turning point of 1 % will reduce the productivity of paddy amounted 0,00796 % ceteris peribus. While the maximum temperature rise above the turning point of 1 % will reduce the productivity of paddy as much as 0,09039% ceteris peribus.

scholarly journals A Nexus between Capital Adequacy and Profitability in the Nigerian Deposit Money Banks

2021 ◽  
pp. 88-108
Author(s):  
Aminu Abubakar
Keyword(s):  
Data Analysis ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Least Square ◽  
Capital Adequacy ◽  
Modest Contribution ◽  
Ex Post ◽  
Regulatory Standards ◽  
Strict Compliance ◽  
The Impact

This paper examines the impact of capital adequacy on corporate profitability of selected Deposit Money Banks (DMBs) listed on the Nigerian Exchange Limited (NGX Limited) from 2005 – 2014. The paper is carried out based on the historical panel data analysis. To achieve this objective; an ex-post factor research design was employed. Descriptive statistics as well as fixed-effect and random-effect Generalized Least Square (GLS) regression techniques were used as tools of data analysis. The paper made a modest contribution to the existing body of knowledge as most of the studies done in Nigeria and at international arena were not looking at the regulatory standards or benchmark to assess the capital adequacy and its impact on the profitability performance of banks. However, the bases used to evaluate the impact of capital adequacy on the profitability at times vary with the regulatory rating standards. The findings established that capital adequacy has insignificant positive effect on the DMBs’ profitability proxies represented by ROA and ROE. It was concluded that capital adequacy does not have significant impact on the profitability of the listed DMBs in Nigeria. The paper recommends that DMBs should ensure strict compliance with the benchmark for capital adequacy set by both the CBN and the Basel since they go a long way in improving their performance.

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