Reducing Inequality in Developing Countries Through Microfinance

2019 ◽  
pp. 281-301 ◽  
Author(s):  
Richardson Kojo Edeme ◽  
Chigozie Nelson Nkalu
Keyword(s):  
Developing Countries ◽  
Poverty Reduction ◽  
Impact Analysis ◽  
Linear Connection ◽  
Gdp Per Capita ◽  
Positive Sign ◽  
Explanatory Variables ◽  
Per Capita ◽  
Macro Variables ◽  
The Impact

Even though microfinance is expected to significantly affect macro variables such as inequality, poverty, and human development, there has not been enough empirical study on the impact analysis at the macro level, such as the effect of microfinance on inequality, especially in developing countries of Africa. This chapter, therefore, provides a detailed empirical analysis of the correlation between microfinance and inequality in West Africa sub-region. The correlation coefficient shows that although there is a positive linear connection between the possibilities of microfinance to reduce inequality; it has not contributed significantly to poverty reduction with the independent variables. The findings further suggest that the most robust explanatory variables for inequality reduction are GDP per capita and democracy which are invariably significant with positive sign. Taken together, these findings reinforce the intuition that greater democracy and provision and expansion of financial infrastructures especially in backward countries of the region are necessary for microfinance to thrive and contribute abundantly to inequality reduction.

scholarly journals Effects of economic clusters, FDI and R&D on Innovation: Developing Countries in European Monetary Union Example

2019 ◽  
Vol 7 (2) ◽  
pp. 236-251 ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
KORHAN ARUN
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Monetary Union ◽  
European Monetary Union ◽  
Gdp Per Capita ◽  
European Monetary ◽  
Moderation Effect ◽  
Empirical Results ◽  
Per Capita ◽  
The Impact

This study investigates the impact of clusters, FDI, RD, and GDP per capita on innovation. Using a unique panel dataset obtained from eight developing countries with similar innovation levels that are in and out of economic clusters from 2001-2014. The empirical results show that dynamic (uncountable) effects of clusters are not statistically significant on innovation, but static effects (countable) are. Therefore, clusters are effective for developing countries on trade but not innovation directly that developing country should increase trade for innovation spillover by moderation effect of being in economic unions.

scholarly journals International Trade and North-Sumatra’s Local Economy

JEJAK ◽  
2018 ◽  
Vol 11 (2) ◽  
pp. 323-337
Author(s):  
Jongkers Tampubolon ◽  
Tongam Sihol Nababan
Keyword(s):  
International Trade ◽  
Poverty Reduction ◽  
Raw Materials ◽  
Local Economy ◽  
Gdp Per Capita ◽  
Export Structure ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
The Impact ◽  
North Sumatra

North Sumatra is one of the provinces in Indonesia with high levels of economic openness. On average, since 2000, the contribution of export value to the Regional GDP reached 40 % and import value of 28%. Using Granger causality method, the study aims to investigate causal relations between international trade and North Sumatra’s local economy especially the impact of exports and imports on Regional GDP, Regional GDP per capita, employment and poverty reduction. The empirical results of present study discovered that (i) the exports and imports respectively have positive and significant impact on regional GDP, regional GDP per capita, employment and poverty reduction, (ii) there is a bi-directional causality between imports and regional GDP, where GDP growth rate would boost imports over-proportionally, (iii) both exports and imports are dominated by intermediate goods as the raw materials for further processing industry, (iv) export structure which is dominated by the agricultural-based intermediate good is proverty-reduction through factor market in the upstream sector making the rural peoples benefited from the exports.

scholarly journals Government Spending and Real Exchange Rate Case of Albania

2013 ◽  
Vol 2 (4) ◽  
pp. 303 ◽  
Author(s):  
Edmira Cakrani ◽  
Pranvera Resulaj ◽  
Luciana Koprencka (Kabello)
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Unit Root ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Explanatory Variables ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

Various studies have found that governmentspending can lead to overestimation orunderestimation of the real exchange rate, depending on the composition of theseexpenditures. The purpose of this paper is toassess the impact of government spendingon real exchange rate in Albania. In this paper is used a log liner model with quarterlydata. Other explanatory variables in this model are: foreign direct investment, remittances,real GDP per capita, openness. Variables are tested for unit root and cointegration. Theresults indicate that government spendingis associated with overvaluation of realexchange rate in Albania.JEL Classification: E62; F31Various studies have found that governmentspending can lead to overestimation orunderestimation of the real exchange rate, depending on the composition of theseexpenditures. The purpose of this paper is toassess the impact of government spendingon real exchange rate in Albania. In this paper is used a log liner model with quarterlydata. Other explanatory variables in this model are: foreign direct investment, remittances,real GDP per capita, openness. Variables are tested for unit root and cointegration. Theresults indicate that government spendingis associated with overvaluation of realexchange rate in Albania.

scholarly journals The Impact of Entrepreneurship on Economic Performance in Indonesia

2020 ◽  
Vol 66 (1) ◽  
pp. 1
Author(s):  
Yohanes B. Kadarusman
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Performance ◽  
Large Scale ◽  
Gdp Per Capita ◽  
Small Scale ◽  
Entrepreneurial Ventures ◽  
Micro Scale ◽  
Per Capita ◽  
The Impact

Entrepreneurship is claimed to have a positive and significant effect on economic growth in developed countries, but less so in developing countries. Using the growth model, this study examines the impact of entrepreneurship on economic performance in Indonesia as indicated by economic growth and income per-capita from 1985 to 2017. The estimation result confirms the non-significant effect of the growth of entrepreneurial ventures on the growth of GDP per-capita. However, the accumulation of the ventures has a positive and significant effect on the level of GDP per capita. The different typology of entrepreneurial ventures in Indonesia provides some insight to explain the finding, namely: scale does matter. Indonesia already has abundant micro-scale entrepreneurs, but it has only a limited amount of small-scale entrepreneurs, and even fewer medium or large-scale entrepreneurs. This finding contributes to a better understanding of the statistically non-significant impact of entrepreneurship on economic growth in developing countries. This study also suggests that entrepreneurship policy in Indonesia should focus more on facilitating micro-scale ventures to continuously develop toward small, medium, and ultimately large-scale enterprises rather than on creating start-ups.

Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?

2015 ◽  
pp. 30-53
Author(s):  
V. Popov
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Gdp Per Capita ◽  
The West ◽  
Catching Up ◽  
The Us ◽  
The World ◽  
Economic Divergence ◽  
Per Capita ◽  
Relative Standing

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.

scholarly journals The Impact of Oil Price Shocks on National Income: Evidence from Azerbaijan

Energies ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 1695
Author(s):  
Shahriyar Mukhtarov ◽  
Sugra Humbatova ◽  
Mubariz Mammadli ◽  
Natig Gadim‒Oglu Hajiyev
Keyword(s):  
Exchange Rate ◽  
Oil Price ◽  
Gdp Per Capita ◽  
Oil Price Shocks ◽  
Price Shocks ◽  
Total Trade ◽  
Trade Turnover ◽  
Per Capita ◽  
The Exchange Rate ◽  
The Impact

This study investigates the influence of oil price shocks on GDP per capita, exchange rate, and total trade turnover in Azerbaijan using the Structural Vector Autoregressive (SVAR) method to data collected from 1992 to 2019. The estimation results of the SVAR method conclude that oil price shocks (rise in oil prices) affect GDP per capita and total trade turnover positively, whereas its influence on the exchange rate is negative in the case of Azerbaijan. According to results of this study, Azerbaijan and similar oil-exporting countries should reduce the dependence of GDP per capita, the exchange rate, and total trade turnover from oil resources and its prices in the global market. Therefore, these countries should attempt to the diversification of GDP per capita, the exchange rate, and other sources of total trade turnover.

scholarly journals Globalization and educational inequality during the 18th to 20th centuries: Latin America in global comparison

2010 ◽  
Vol 28 (2) ◽  
pp. 279-305 ◽  
Author(s):  
Joerg Baten ◽  
Christina Mumme
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Strong Evidence ◽  
Educational Inequality ◽  
Gdp Per Capita ◽  
Positive Effects ◽  
Global Comparison ◽  
Per Capita ◽  
The Rich

AbstractThis paper explores the inequality of numeracy and education by studying school years and numeracy of the rich and poor, as well as of tall and short individuals. To estimate numeracy, the age-heaping method is used for the 18th to early 20th centuries. Testing the hypothesis that globalization might have increased the inequality of education, we find evidence that 19th century globalization actually increased inequality in Latin America, but 20th century globalization had positive effects by reducing educational inequality in a broader sample of developing countries. Moreover, we find strong evidence for Kuznets’s inverted U hypothesis, that is, rising educational inequality with GDP per capita in the period until 1913 and the opposite after 1945.

scholarly journals Non-Price Criteria for the Evaluation of the Tender Offers in Public Procurement of Ukraine

2020 ◽  
Vol 8 (3) ◽  
pp. 44
Author(s):  
Alexander Baranovsky ◽  
Nataliia Tkachenko ◽  
Vladimer Glonti ◽  
Valentyna Levchenko ◽  
Kateryna Bogatyrova ◽  
...  
Keyword(s):  
Public Procurement ◽  
Well Being ◽  
Gdp Per Capita ◽  
Tender Offers ◽  
Product Categories ◽  
Per Capita ◽  
The Government ◽  
The Impact ◽  
Over Time ◽  
The Eu

Traditionally, public procurement has been associated with the measurement of achieving savings. However, recent research shows that the economic impact of public procurement is not limited only to savings, but by measuring the impact of four capitals—natural, human, social, and economic—on sustainable well-being over time. Ukraine is a country with a very low gross domestic product (GDP) per capita, which exacerbates the problem of the impact of public procurement results on the population’s welfare. Ukrainian public procurement legislation allows customers to apply non-price criteria (the share of non-price criteria cannot be more than 70%), which, together, are taken into account in the formula of the quoted price. The studies show that the effect of the use of non-price criteria depends on the relevance of the method of the evaluation of non-price criteria. The most important non-price criteria for Ukrainian customers by product categories and the methods of their evaluation are analyzed according to the Bi.prozorro.org analytics module. Therefore, it is concluded that the quoted price method, which is used in Ukrainian practice, is not relevant in comparison with the method used in the EU. A survey of the government buyers on the practice of applying non-price criteria was conducted, and the areas of their use were identified.

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