An Analysis of Restraints on Effective Demand for Loans in Rural China

2018 ◽  
Vol 6 (8) ◽  
pp. 107
Author(s):  
Wenjie Ma ◽  
Minxin He ◽  
Xinyu Zhong ◽  
Shengsong Huang
Keyword(s):  
Economic Growth ◽  
Migrant Workers ◽  
Rural Areas ◽  
Financial Services ◽  
Rural China ◽  
Strong Support ◽  
Effective Demand ◽  
Second Child ◽  
Factors Influencing ◽  
First Choice

China’s overall economic growth is, to a great extent, hindered by the lack of economic growth in rural areas. Based on data from the Thousand-Village Survey (2015) of 31 provinces conducted by Shanghai University of Finance and Economics, we conduct this empirical study to analyze the current state of rural financial services and the factors influencing effective demand for loans in rural China. Looking at the demand side, in 2014, only 13.91% farmers had loans, and only 15.53% of them made financial institutions their first choice when they needed loans. Clearly, there is still much to do with regard to inclusive finance. From the perspective of the supply side, only 43.86% of dispersed loans can be categorized as productive loans, further reflecting that the financial services industry does not provide strong support for rural economic growth. Further study shows that the main factors influencing effective demand for productive loans are the population age structure and the rate at which migrant workers return home. Therefore, the "Second-Child" policy and policies that encourage migrant workers to go back home to start businesses are of vital importance in order to raise effective financial demand in rural China.

ICT4D in China and the Capability Approach

2015 ◽  
Vol 7 (1) ◽  
pp. 58-72 ◽  
Author(s):  
Carol Ting
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Capability Approach ◽  
Rural China ◽  
Well Being ◽  
Policy Implications ◽  
Chinese Government ◽  
The Past ◽  
The Government ◽  
The Capability Approach

For more than a decade, the Chinese government has poured copious resources into rural informatization as a means to increase agricultural productivity and rural economic growth. Such efforts so far have not produced definite results in rural areas, but increasing economic inequality and rising environmental threats have already forced the government to rethink its growth-centered development policy. Indeed, recent government releases clearly state the resolve to departure from the “GDP obsession” of the past. Meanwhile, the past three decades saw the rise of a powerful alternative development approach—the Capability Approach (CA), which focuses on empowering individuals and sees economic growth as one element of well-being. Given that the CA can potentially help devising a more coherent and holistic framework for Information and communications technologies for development (ICT4D), this paper examines the compatibility between the Capability Approach and the top-down socialist approach towards rural informatization in China. Built on two case studies of rural informatization in rural China, the present paper identifies potential obstacles to the adoption of the Capability Approach and discusses policy implications and suggestions.

Effect of Financial Technology Loans on Financial Inclusion Among the Unbanked Low-Income Earners in Makueni County

2021 ◽  
Vol 3 (2) ◽  
pp. 1-12
Author(s):  
Samson Mutuku Mule ◽  
Fredrick Wafula ◽  
Nickson Agusioma
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Small Businesses ◽  
Sampling Technique ◽  
Target Population ◽  
Financial Inclusion ◽  
Primary Data ◽  
Financial Technology

Financial inclusion is crucial in fostering individual prosperity, poverty eradication and stimulating economic growth. It is therefore a major policy concern for majority of governments across the world. Despite the rampant growth of financial technology in Kenya, the number of adults who are financially excluded is still high among the rural area residents. Lack of financial services access in rural areas has resulted to rural economic growth retardation and inequality. Further, financial exclusion has led to increased poverty levels because those excluded have been forced to depend on their limited savings to pursue their entrepreneurial interests. Small businesses have had no choice but to rely on their inadequate earnings to pursue viable business opportunities. The main objective of this study was to establish the effect of financial technology loans on financial inclusion among the unbanked low-income earners in Makueni County. Descriptive research design was used, with the target population being the unbanked low-income earners over the age of 18 in Makueni County. A sample size of 384 respondents was chosen using the convenience sampling technique. Personal interviews were conducted using an interview guide to collect primary data. The study found that fintech loans have a positive and significant effect on financial inclusion among the unbanked low-income earners in Makueni County. According to the findings of the study, since the unbanked people in Makueni County associate the use of financial technology loans to meeting personal financial needs and especially coping up with day-to-day expenses and emergencies, this study recommends that such people embrace the use of the fintech loans more as it will aid them in improving their financial lives to a greater extent. This is because for instance, by using the fintech loans, they can create employment for themselves and generate sufficient income by financing micro businesses using this credit.

scholarly journals THE INTERACTIVE EFFECTS OF REMITTANCES ON ECONOMIC GROWTH AND INEQUALITY IN WESTERN BALKAN COUNTRIES

2021 ◽  
Vol 22 (3) ◽  
pp. 757-775
Author(s):  
Ujkan Q. Bajra
Keyword(s):  
Economic Growth ◽  
Migrant Workers ◽  
Interactive Effect ◽  
Strong Support ◽  
Interactive Effects ◽  
Western Balkans ◽  
Migrant Remittances ◽  
The Individual ◽  
High Level ◽  
The Impact

Hardly any studies have investigated the impact of migrant remittances on economic growth (EG) and inequality in the Western Balkans as a whole (WB6). Using the method of instrumental variables (VI), the findings show that while remittances influence economic growth, their inflow also promotes a high level of migration and absorbs a large workforce by influencing the labor market and encouraging uncontrolled individual relocation. This paper also reveals that although remittances have eased income inequalities the share of remittances in a country’s economy has declined over the years. After testing for the endogeneity of remittances and controlling for various variables, the results indicate that migrant workers’ remittances do not provide strong support for economic growth and inequality. For the sample average, a 1-percent rise in the share of remittances in the economy (i.e., to GDP) will lead to a 0.10-percent rise in the economic cycle i.e. GDP growth, respectively will lead to a 0.05-percent drop in the share of people living in inequality. The findings also show that the interactive effect of remittances and foreign direct investment is lower on economic growth and inequality than the individual effect of each factor.

scholarly journals Village Doctors' Acceptability to a Syndromic Surveillance System in Rural China

2014 ◽  
Vol 6 (1) ◽  
Author(s):  
Yang Fei ◽  
Yan Ding ◽  
Biao Xu ◽  
Shaofa Nie ◽  
Weirong Yan ◽  
...  
Keyword(s):  
Rural Areas ◽  
Surveillance System ◽  
Syndromic Surveillance ◽  
Rural China ◽  
Decision Makers ◽  
Jiangxi Province ◽  
Syndromic Surveillance System ◽  
Factors Influencing ◽  
Village Doctors ◽  
Study Sites

The present abstract is part of a broader research project to establish a syndromic surveillance system (ISS) in rural areas of China. Four counties in Jiangxi Province and Hubei Province were selected as study sites. As more than half of data collectors in the broader project are village doctors, a deeper understanding of the acceptability of village doctors is needed to guide decision makers. The purpose of this study is to identify different acceptability groups of village doctors and to explore factors influencing acceptability from their perspective.

scholarly journals The Development of India’s Financial Inclusion Agenda—Some Lessons for Pakistan

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 569-584 ◽  
Author(s):  
Muneeb Hussain Gattoo ◽  
S. M. Jawed Akhtar
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Financial Development ◽  
Rural Areas ◽  
Financial Services ◽  
Developing Economies ◽  
Negative Impact ◽  
Financial Inclusion ◽  
Loan Contracts ◽  
Poor Households

Financial Inclusion has assumed a vital position in the Public Policy discourse of developing economies. Provision of financial services to the otherwise excluded strata of the society enhances their potential to climb the economic ladder of opportunity and prosperity. Access to financial services to the otherwise excluded impacts their quality of life and enables the less privileged to increase and diversify their incomes, improve their social and economic conditions. Due to lack of access to financial services, most poor households have to rely on their meagre savings or money lenders which limit their ability to actively participate and benefit from the development process. The main theoretical arguments that economic theory postulates regarding the failure of financial markets in percolating poor and rural areas are of informational asymmetries, difficulties in contract designing and enforcement, greater transaction costs. The demand side aspects may be low demand for such services, arising from illiteracy, less investment opportunities in rural areas and difficult loan contracts [Basu (2006)]. When households are access constrained with respect to financial services, it becomes one of the important reasons for persisting inequalities. Economic theory suggests that unrelenting inequalities has a negative impact on the long term growth prospects of an economy [World Bank (2007)]. While establishing causality between financial development and economic growth has been quite tedious, with no simple answers, the evidence of a strong link between financial development and economic growth has continued to rise [Gattoo and Akhtar (2014)]. The interest in the financial inclusion discourse across developing and developing world stems from the recognition that a strong and vibrant financial system does not necessarily imply increasing financial to all across the societal divide [Honohan (2003)].

Channels of financial sector development and rural-urban consumption inequality in India

2017 ◽  
Vol 44 (12) ◽  
pp. 1973-1987 ◽  
Author(s):  
Atul Mehta ◽  
Joysankar Bhattacharya
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Financial Services ◽  
Financial Sector ◽  
Bank Credit ◽  
Growth Effect ◽  
Direct Channel ◽  
Content Type ◽  
The Poor ◽  
Urban Consumption

Purpose The purpose of this paper is to examine the direct (microcredit), medium-direct (bank credit), and indirect (through economic growth) effect of financial sector development (FSD) on rural-urban consumption inequality (RUCI) in India using state-wise annual data from 1999-2000 to 2011-2012. Design/methodology/approach A panel data analysis for a sample of 15 major Indian states using the generalized method of moments estimators provides an empirical evidence for the direct (microcredit), medium-direct (bank credit), and indirect (economic growth) effect of FSD on RUCI. Findings FSD is pro-urban in India resulting in a declining rural-urban consumption ratio (RUCR) and increasing RUCI. The negative effect of FSD on RUCR is greatest through the medium-direct channel followed by the indirect and direct channels. Research limitations/implications The study questions the social banking initiatives of the government in rural areas where more than 80 percent of the poor reside. There is a need for restructuring financial inclusion programs with a shift in their focus on rural areas and an improved mechanism to target the poor. Originality/value The paper proposes that formal financial services by banks are primarily availed by non-poor and urban population and hence acts as a medium-direct channel whereas the semi-formal financial services by microfinance institutions specifically target the rural poor and act as a direct channel to affect the poor. It is the first ever study to use state-wise data on microcredit disbursed under Self-help Group Bank Linkage Program to assess the direct impact of FSD on RUCI.

scholarly journals Factors influencing developmental delay among young children in poor rural China: a latent variable approach

BMJ Open ◽  
2018 ◽  
Vol 8 (8) ◽  
pp. e021628 ◽  
Author(s):  
Jingxu Zhang ◽  
Sufang Guo ◽  
Ying Li ◽  
Qianwei Wei ◽  
Cuihong Zhang ◽  
...  
Keyword(s):  
Young Children ◽  
Developmental Delay ◽  
Rural Areas ◽  
Latent Variable ◽  
Structural Equation ◽  
Rural China ◽  
Depression Scale ◽  
Primary Caregivers ◽  
Factors Influencing ◽  
Variable Approach

ObjectivesThe aims of the study were to determine the prevalence of suspected developmental delay in children living in poor areas of rural China and to investigate factors influencing child developmental delay.DesignA community-based, cross-sectional survey was conducted.Eighty-three villages in Shanxi and Guizhou Provinces, China.ParticipantsA total of 2514 children aged 6–35 months and their primary caregivers.Outcome measuresSuspected child developmental delay was evaluated using the Ages & Stages Questionnaires-Chinese version. Caregivers’ education and age, wealth index, child feeding index, parent-child interaction, number of books and Zung Self-Rating Depression Scale were reported by the primary caregivers. Haemoglobin levels were measured using a calibrated, automated analyser. Birth weight was obtained from medical records.ResultsOverall, 35.7% of the surveyed children aged 6–35 months demonstrated suspected developmental delay. The prevalence of suspected developmental delay was inversely associated with age, with the prevalence among young children aged 6–11 months being almost double that of children aged 30–35 months (48.0% and 22.8%, respectively). Using a structural equation model, it was demonstrated that caregiver’s care and stimulus factors and child’s haemoglobin level were directly correlated, while caregiver’s sociodemographic factors were indirectly associated with suspected developmental delay.ConclusionsThe prevalence of suspected developmental delay is high in poor rural areas of China, and appropriate interventions to improve child development are needed.

FACTORS INFLUENCING ENTREPRENEURIAL SUCCESS AMONG THE RURAL WOMEN ENTREPRENEURS IN BANGLADESH

2020 ◽  
Author(s):  
Dalowar Hossan
Keyword(s):  
Government Policy ◽  
Rural Women ◽  
Rural Areas ◽  
Women Entrepreneurs ◽  
Descriptive Statistics ◽  
Entrepreneurial Success ◽  
Factors Influencing ◽  
Proper Training ◽  
Convenience Sampling ◽  
The Government

The aim of this study is to investigate the factors influencing the entrepreneurial success of rural women entrepreneurs in Bangladesh. Non-probability sampling specifically convenience sampling is used to draw the sample and data is collected using the self-administered survey. Regression analysis and descriptive statistics are used to analyze the data. The study discloses that motivational factors, government policy and financial support have significant influence on the rural women entrepreneurial success in Bangladesh. Due to lack of suitable training and proper development as well as ICT knowledge, the rural women of Bangladesh could not accomplish the achievement. Half of the total populations of Bangladesh are female and most of them live in rural areas. Therefore, the government and the policymakers in Bangladesh should develop the potential of rural women entrepreneurs by providing development facilities, proper training, and ICT knowledge.

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