scholarly journals Impact of Microfinancein Promoting Financial Inclusion in Nigeria

2015 ◽  
Vol 3 (2) ◽  
pp. 139
Author(s):  
Emeka E. Ene ◽  
Udom A. Inemesit
Keyword(s):  
Rural Areas ◽  
Unit Root ◽  
Unit Root Test ◽  
Regression Method ◽  
Financial Inclusion ◽  
Spurious Regression ◽  
The Poor ◽  
Rural Dwellers ◽  
The Impact ◽  
Financial Environment

<p><em>Despite the Central Bank of Nigeria’s (CBN) initiatives to encourage banks to extend their services and facilities to rural areas, a high percentage of the rural dwellers still remain unbanked and as such, the initiatives appear not to promote financial inclusion services among the poor in Nigeria. As a result, small entrepreneurs often lack enabling financial environment to grow. The study undertakes an empirical analysis of the impact of microfinance in promoting financial inclusion in Nigeria between 1990 and 2014 using OLS regression method. Unit root test was conducted on the variables to examine their level of stationary to avoid spurious regression results. The findings showed that minimum deposit amount have a positive and significant relationship with saving. It was observed that access to microfinance minimum deposit amount has significant effect on savings account opened by rural dwellers. Microfinance interest rate was however found to have a negative and insignificant relationship with the rural dwellers loans and advances.</em><em> </em><em>Recommendations were made among which are that Government should facilitate microfinance branches close to the rural area, products and services accessible to a large segment of the potentially productive Nigeria population, who are currently not being served by the formal financial sector.</em></p>

scholarly journals Comparative Study of the Impact of Oil Rent on Healthcare in Nigeria and Cameroon: A Three Stage Methodical Approach

2019 ◽  
pp. 58-63
Author(s):  
EWUBARE, Dennis Brown ◽  
OBAYORI, Elizabeth Lizzy
Keyword(s):  
Rural Areas ◽  
Unit Root ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Panel Unit Root ◽  
Long Run ◽  
Oil Rents ◽  
The Impact

The study comparatively examined the impact of oil rent on healthcare in Nigeria and Cameroon from 1995 to 2015. The objectives of the study are to; study the trend of oil rents and healthcare in Nigeria and Cameroon; examine the relationship between oil rent and healthcare of Nigerians and Cameroonians and determine the impact of mineral rent on the healthcare of Nigeria and Cameroon. To achieve these objectives panel data were collected on health, oil rent and mineral rent and analyzed using the econometric techniques of panel unit root test and panel cointegration test as well as graphical method. The panel unit root and cointegration test showed that all the series are indeed stationary and have long run equilibrium relationship. Comparatively, the graph showed that the rents from oil in Nigeria are lower than that of Cameroon. Also, Cameroon performs better in rents from minerals than Nigeria. Thus, Cameroon capital expenditure on health has steadily increased since 1995 up to 2015 while Nigeria seems not to take healthcare expenditure serious hence the dismal performance in the infant mortality rates. Based on the findings, it is recommended that revenue from oil should be towards inclusive growth, thereby impacting significantly on the healthcare and welfare of the citizens. Thus, there should be investment in primary as well as maternal health in the rural areas for the disadvantaged in society.

scholarly journals ROLE OF DIGITIZATION IN FINANCIAL INCLUSION OF SELF- HELP GROUPS

2019 ◽  
pp. 43-46
Author(s):  
Puja Rajvanshi ◽  
S. K. Vyas
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Financial Inclusion ◽  
Credit System ◽  
Digital Inclusion ◽  
Digital Medium ◽  
Self Help ◽  
The Poor ◽  
Self Help Groups ◽  
The Impact

India has always aimed at inclusive growth. A large part of population still resides in rural areas. Economic development of India is not possible without rural development. Several programs were introduced from time to time with the core objective of easing the accessibility of financial services to the poor but with little success. One of the reasons for rampant underdevelopment of rural India is inaccessibility of funds at the grass root level. As the formal credit institutions were considered incapable of dealing with the financial requirements of the poor, microfinance emerged as an alternate credit system. This has further gained momentum by using technology to provide financial services to the poor. This paper would focus on how digitization has influenced financial inclusion and what are the various challenges that must be tackled to make it more effective. As the focus is on SHG- BLP model, this paper would emphasize how the SHGs can utilize digital medium to reap more benefits out of this microfinance model. The paper would give insight into how the impact of microfinance can be enhanced using technology. KEY WORDS: Microfinance, Self Help Groups, NABARD, Digital Inclusion, Digitization etc.

scholarly journals A Study on the Impact of Schemes and Programmes of Government of India on Agriculture to Increase Productivity, Profitability, Financial Inclusion, and Welfare of Farmers to Transform them into Modern Society

2021 ◽  
pp. 231-243
Author(s):  
Mahesh K. M. ◽  
P. S. Aithal ◽  
Sharma K. R. S.
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Modern Society ◽  
Modern Technology ◽  
Mobile App ◽  
Financial Inclusion ◽  
Agricultural Products ◽  
Theoretical Concepts ◽  
The Government ◽  
The Impact

Purpose: The foremost intent of this research article is to create awareness about various schemes for the productive sector of agriculture. Through this study, the level of performance of these agricultural schemes and programmes were analysed that will be helpful for the attainment of financial inclusion. Hence it is necessary to know about various schemes and their making to connect the beneficiaries. Agriculture is the basic source of food supply, production, processing, promotion and distribution. Agricultural products contribute to Gross Domestic Product (G.D.P.) and generate employment in rural areas. They transform the lives of the farmers in modern society. The government of India has introduced Minimum Support Price (MPS), MIF, PMKSY, PMFBY, e-NAM, PM-KISAN, PMJDY, PM-KUSUM, PKVY, NAMS, and MGNREGS. The mobile app KisanSuvidha and innovative programmes like Kisan Rail, KrishiUdaan double the farmers’ Income (DFI). These help in transforming village economy, coverage of irrigation, crop insurance, and stabilizing the income. They also ensure financial support, flow of credit and Direct Benefit transfer of subsidies and funds to beneficiaries. Adopting modern technology, farm-based activity, poultry, dairy, forestry, beekeeping and with the support of SHGs which will directly impact productivity, profitability, financial inclusion, and the welfare of farmers in the 21st century and development of the country’s economy. Design/ methodology/approaches: This study is all about the theoretical concepts based on analysis of various schemes and interconnect. Findings and results: This study reveals that the effectiveness of various agricultural programs and also identifies the benefits and beneficiaries of these schemes. Under this research, various financial services, subsidies, funds released, online platform for agricultural products, funds for micro-irrigation, and so on benefits provided by the government of India were studied. Originality/value: Analysed the various schemes and compelled its beneficiaries and develop a modern to achieve financial inclusion and economic growth through the study. Type of Paper: Research Analysis.

scholarly journals Challenges Facing Financial Inclusion Due to the COVID-19 Pandemic

2020 ◽  
Vol 3 (2) ◽  
pp. 50
Author(s):  
Tea Kasradze
Keyword(s):  
Low Income ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Financial Resources ◽  
Financial Products ◽  
The Poor ◽  
Wide Range ◽  
Medium Enterprises ◽  
The Impact ◽  
Poor Population

Financial inclusion is often considered as an access to financial resources for the wide public and small and medium-sized businesses, although it is a much broader concept and includes a wide range of access to quality financial products and services, including loans, deposit services, insurance, pensions and payment systems. Mechanisms for protecting the rights of consumers of financial products and services are also considered to be subject to financial inclusion. Financial inclusion acquires great importance during the pandemic and post-pandemic period. The economic crisis caused by the pandemic is particularly painful for low-income vulnerable population. A large part of the poor population who were working informally has lost source of income due to lockdown from the pandemic. Remittances have also been reduced / minimized, as the remitters had also lost jobs and are unable to send money home. Today, when people die from Coronavirus disease, it may be awkward to talk about the financial side of a pandemic, but the financial consequences can be far-reaching if steps are not taken today to ensure access to and inclusion of financial resources. The paper examines the impact of the pandemic on financial inclusion and the responses of the governments and the financial sectors to the challenge of ensuring the financial inclusion of the poor population and small and medium enterprises.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

scholarly journals Determinants of Agricultural Output in Nigeria

2018 ◽  
pp. 65-73
Author(s):  
OMEKWE, Sunday Omiekuma Pau ◽  
BOSCO, ItoroEkpenyong ◽  
OBAYORI, Joseph Bidemi
Keyword(s):  
Climate Change ◽  
Rural Areas ◽  
Unit Root ◽  
Agricultural Sector ◽  
Unit Root Test ◽  
Government Funding ◽  
Test Results ◽  
Agricultural Output ◽  
Rural Farmers ◽  
Integration Test

The study examined the determinants of agricultural output in Nigeria from 1985-2016. It employs the econometric techniques of co-integration test and ECM approach to analyze the data obtained from the CBN statistical bulletin. The Augumented Dickey Fuller unit root test results showed that all the variables were stationary at first difference. The Johansen co-integration test results showed that co-integrating equations exist which fit the model for the ECM. Meanwhile, the ECM results showed that; government funding in agriculture is positively and significantly related to agricultural output, agriculture credit has positive and significant impact on agricultural output. Also, climate change has a positive and significant effect on agricultural output. The findings from the study showed that agricultural funding; agricultural credits as well as climate change are key determinants of agricultural output in Nigeria. Based on these findings, the study recommends amongst others that there should be increase infrastructural funding in the yearly budget in order to provide infrastructural facilities to the rural areas where bulk of farm products are produced. Also, credit to the agricultural sector via the rural farmers should be encouraged.

scholarly journals Do confidence indicators have an impact on macro-financial indicators? An analysis of the financial service and real sector confidence indexes: evidence from Turkey

2020 ◽  
Vol 9 (1) ◽  
pp. 74-94
Author(s):  
Esra N Kilci
Keyword(s):  
Stock Market ◽  
Unit Root ◽  
Financial Services ◽  
Structural Breaks ◽  
Unit Root Test ◽  
Real Sector ◽  
Financial Indicators ◽  
Stock Market Index ◽  
Market Index ◽  
The Impact

The primary aim of this study is to analyze the impact of financial services and real sector confidence indexes on some macroeconomic and financial indicators such as industrial production, inflation, stock market index, foreign exchange rates and interest rates in Turkey for the period from May 2012 to May 2019. In this study, the unit root properties of these series are tested by using the Narayan and Popp (2010) unit root test with two structural breaks and the Enders and Lee (2012) Fourier ADF unit root test with multiple structural breaks. We investigate the causal link between confidence indicators and macro-financial variables using the Fourier Toda Yamamoto causality test proposed by Nazlioglu et al. (2016). The results suggest a strong link between financial services and real sector confidence indexes on macro-financial indicators such as stock market index and inflation, supporting the evidence of the short-run impact of confidence indexes on these variables.

scholarly journals Determinants of Financial Capability: A Situational Analysis for Namibia

2022 ◽  
Vol 7 (6) ◽  
pp. 7-13
Author(s):  
Asa Romeo Asa ◽  
Johanna Pangeiko Nautwima
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Economic Inequality ◽  
Financial System ◽  
Financial Inclusion ◽  
Situational Analysis ◽  
The Poor ◽  
Development Agenda ◽  
Wide Range ◽  
Ease Of Access

It is imperative that if the poor in society benefit from the massive developments in the financial sector, then such a sector must be genuinely inclusive. It should meet the needs of all citizens with the potential to use such financial services productively. This paper scopes financial inclusivity as a process ensuring ease of access, availability, and usage of financial services by all members of society. To reduce socio-economic inequality, the poor in developing countries, like everyone else, need access to a wide range of financial services that are convenient, flexible, and reasonably priced. Therefore, financial inclusivity is sought to be significant towards the global development agenda as a tool for increasing the poor’s access to financial services, often cited as a mechanism that can help reduce poverty and lower income inequality. For many years, microfinance has been heralded as a mechanism for enhancing financial inclusion. It provides an avenue through which the marginalized and the poor can access and benefit from the formal financial system. Moreover, financial inclusivity is substantially evident in the rural areas among the poor, who have no collateral or credit history for participating in the legal financial system. As a result, financial inclusion is receiving increased attention as an essential tool for reducing aspects of socio-economic inequality characterized by the isolation of individuals and communities from formal financial services, like affordable and accessible credit.

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