Establishment and Operation of Private Land Credit Institutions in Penza Province in the Late 1860s – mid 1880s

Introduction. The abolition of public credit institutions in the first half of the 19th century meant that following after the peasant reform, private landowners were forced to rely entirely on their ability to conduct economic activities, they desperately needed the money demanded for the capitalist modernization of their estates. It was important under such circumstances the appearance in the mid-1860s of private land banks that have granted land collateral loans. Materials and Methods. The study of the claimed problem required the involvement of a number of historical and economic methods: historical, statistical and quantitative. At the same time, the question of the amount of debt owed to private land banks was examined on the basis of a comprehensive analysis of statistical data on land credit published by a committee of congresses of representatives of Russian land credit institutions. Results. The article analyzes the main indicators of the activity of the joint-stock land banks in the first two decades of their operation, considers the characteristics of the establishment and development of the private land credit system, the volume of loans issued, the size of the mortgaged land, the amount of the loans are shown by their regional characteristics. Discussion and Conclusions. Set up in mid-nineteenth century the system of equity land credit, which focuses on the granting of land mortgages by private landowners, has played an important role in the processes of land ownership mobilization and the development of capitalism in the agricultural sector. Private credit institutions were one of the most important components of the land credit system, and the activities of these institutions in the territory of the governorate in question resulted in: that almost a quarter of all privately owned land had been deposited in them.

Environmental protection and pollution prevention: What determines the intention of tea farmers’ ecosystem construction

Pesticide is inevitable in the process of tea production. Residual chemical pesticides absorbed by human body and soil will pose a great threat to human health. The construction of tea garden ecosystem that uses the principle of mutual restriction between species can effectively reduce the number of pests and the dependence on pesticides. In order to improve the adoption and attention of green production among farmers, the government strongly supports rural financial institutions to lend to farmers and encourages resources to be inclined to farmers. The aim of this study was to find out what factors affect the intention of tea farmers’ ecosystem construction and the differences of influence on intention of Chinese tea farmers' ecosystem construction under different financing modes. The results of the empirical research showed that the attitude, perceived behavioral control and subjective norms of tea farmers have a significant positive impact on the behavioral intention. And for tea farmers who get bank financing, the influencing intensity and significance of factors are different from those who obtain private credit. This study provided a theoretical basis for government to promote the development of ecosystem construction in the agricultural section, and put forward suggestions for financial institutions to serve environmental protection.

The convergence of financial sector in Asia

This study aims to identify the convergence of financial sector development and the effect of macroeconomic variables on each financial sector development indicator in Asia. The sample used consists of 24 countries in Asia during the period 2010-2018. Identification of convergence using ?-convergence absolute and conditional. Indicators are used to represent the development of the financial sector namely private credit, liquid liabilities, stock market capitalization, and stock market turnover. Empirical evidence was based on the Generalized Method of Moment (GMM) estimation technique. The results showed that there was convergence in Asia and that macroeconomic variables had a significant effect on the development of the financial sector.

Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies

The main objective of the research is to analyze the impact of financial sector development indicators and financial institutions access on primary energy use based on a sample of European Union transition members over 20 years period (1996–2017) through panel cointegration and causality tests that allow for cross-section dependence. The causality analysis revealed that the direction of the causality among financial development indicators, financial institutions access, and primary energy use varied among the countries. On the other side, panel cointegration coefficients disclosed that the financial development index positively affected the primary energy use, but private credit did not have a significant effect on the primary energy use. Furthermore, financial institutions’ access had a significant negative impact on primary energy use. However, country-level cointegration coefficients indicated that the financial development index positively affected the primary energy use in Bulgaria, Croatia, Czechia, Hungary, and Slovenia, and private credit also had a positive impact on primary energy use in Bulgaria, Czechia, Estonia, Hungary, Lithuania, Poland, and Slovakia, but the effect of financial development index on primary energy use was found to be very higher than that of private credit. Moreover, financial institutions’ access negatively affected the primary energy use in Croatia, Estonia, Hungary, Poland, and Romania.

Agricultural credit use in papaya agroecosystems in the central region of Veracruz, Mexico

Objective: To analyze the use of agricultural credit and the profitability of their papaya agroecosystem. Design/methodology/approach: A survey was applied using a questionnaire to 114 producers in seven municipalities in the central area of Veracruz, Mexico. Results: 75% of papaya growers do not know about formal sources of credit that support their productive activity. Only 22.8% have used some type of financing, and only 2.6% came from formal credit sources, even though, 97.4% used semi-formal and informal financing options. 77.2 % of growers use their own economic resources for papaya production. This generates a great heterogeneity on production costs and crop management (level of technology) that reflects the final yield. Even under these conditions the crop is profitable. Limitations of the study/implications: Information from public or private credit institutions, does not reach potential users. The few farmers who have accessed a formal credit, have had bad experiences, such as embargoes and legal actions due to special situations that made them not paying on time, that discourage growers from using this type of credit. Findings/Conclusions: Lack of knowledge of the growers about financing sources. Low use of agricultural or other formal private credits, as 77.2% of growers used their own economic resources, which generates great heterogeneity in production costs associated with the level of technology, that is reflected in the crop yield, even so the papaya crop still is profitable.

Does Financial Development Reduce the Poverty Gap?

Financial development may affect poverty directly and indirectly through its impact on income inequality, economic growth, and financial instability. Previous studies do not consider all these channels simultaneously. To proxy financial development, we use the ratio of private credit to GDP or an IMF composite measure. Our preferred measure for poverty is the poverty gap, i.e. the shortfall from the poverty line. Our fixed effects estimation results for an unbalanced panel of 84 countries over the 1975–2014 period suggest that financial development does not have a direct effect on the poverty gap. However, as financial development leads to greater inequality, which, in turn, results in more poverty, financial development has an indirect effect on poverty through this transmission channel. Only if we use poverty lines of $3.20 or $5.50 (instead of $1.90 a day as in our baseline model) to define the poverty gap, we find that economic growth reduces poverty. This implies that in those cases the overall effect of financial development on poverty may be positive or negative, depending on which indirect effect, i.e. that of income inequality or growth, is stronger. Financial instability does not seem to affect the poverty gap. These results are consistent across various robustness checks.

CONVERGENCE OF FINANCIAL DEVELOPMENT IN ASEAN BASED ON PRIVATE CREDIT AND LIQUID LIABILITIES INDICATORS

The financial development gap for ASEAN countries is critical to analyze since the widening financial development gap will lead to underdeveloped financial sector performance. The concept considered appropriate to measure the gap of financial development is the sigma, and beta convergence approaches. Therefore, this study aims to measure, test, and analyze the convergence of sigma and beta financial development in ASEAN. The method used was the Generalized Moment Method (GMM) dynamic panel with 2010-2017. Results of the study showed that there is a convergence of sigma and beta financial development in ASEAN countries. The limitation of this study is that it only uses two indicators of financial development. The governments of each ASEAN country can improve the financial sector by reforming the financial sector to mitigate, improve, and encourage the development of the financial sector. Keywords: ASEAN, convergence, financial development, GMM

Structuring for Exit: New Approaches for Private Capital in Latin America

Structured financing solutions encompass a range of investment approaches that provide liquidity to investors without the need for a traditional equity exit event, such as a strategic sale, sale to another financial investor, or public market listing. Structuring mechanisms across the debt-to-equity spectrum determine the exit terms of the deal, therefore providing considerable downside protection to investors. Structured financing solutions are an incipient but increasingly important set of tools for investors active in Latin America to address the financing gap for companies that lack access to bank financing and are not attractive targets for traditional PE and VC players. Many investors employing these strategies are in an experimental phase, reporting new lessons learned with each deal completed. Impact investors have been among the top drivers of these structuring innovations, as they have grappled with the additional limitations associated with the straight equity model for environmental or social enterprises. However, the use of structured financing is by no means restricted to the impact investing space. Fund managers have invested USD4b in private credit deals in Latin America since 2018, more than the previous ten years combined. PE and VC investors have also increasingly employed quasi-equity and debt instruments. ACON Investments, for example, has employed mezzanine structures in several deals from its latest funds. Brazil-focused venture capital firm SP Ventures has recently begun investing from its debut venture debt fund. Growing experimentation by fund managers demonstrates the opportunity for investors across ticket sizes, strategies, and the impact-to-commercial spectrum. The structures discussed and the case studies highlighted in this report contain some of the major lessons applicable to a wide group of private capital investors in Latin America targeting certain and timely exits with consistent returns.

The role of finance in inclusive human development in Africa revisited

PurposeThis study aims to investigate the direct and indirect linkages between financial development and inclusive human development in African countries.Design/methodology/approachThe study employs a battery of estimation techniques, notably: two-stage least squares, fixed effects, generalized method of moments and Tobit regressions. The dependent variable is the inequality adjusted human development index. All dimensions of the Financial Development and Structure Database of the World Bank are considered.FindingsThe main finding is that financial dynamics of depth, activity and size improve inclusive human development, whereas the inability of banks to transform mobilized deposits into credit for financial access negatively affects inclusive human development.Practical implicationsPolicies should be tailored to improve mechanisms by which credit facilities can be provided to both households and business operators. Surplus liquidity issues resulting from the inability of banks to transform mobilized deposits into credit can be resolved by enhancing the introduction of information sharing offices (like public credit registries and private credit bureaus) that would reduce information asymmetry between lenders and borrowers.Originality/valueThis study complements the extant literature by assessing the nexus between financial development and inclusive human development in Africa.

Application of Blockchain Hierarchical Model in the Realm of Rural Green Credit Investigation

In order to realize the application research of blockchain technology in the field of green credit investigation, the current paper adopts the method of a blockchain hierarchical model to study the rural green credit. With regard to the realm of rural green credit investigation, this paper sorts out the characteristics of credit data in China’s countryside by countryside credit investigation and determines the major problems and in rural green credit investigation of financial inclusion. Subsequently, the authors put forward a blockchain hierarchical model, which not only has reinforced the advantages in original blockchain dedicated to agriculture, rural areas and rural residents, such as traceability and immutability, but also has transformed the decentralization into disintermediation and changed the single-layered P2P network into a multilayered structure based on China’s rural financial environment. Finally, the authors collect and extract the proper credit investigation data on the rural internet to assess the application value of the model by investigating its practical applicability in reality and problems that may occur during the application of the model. Results show that private credit information has an important impact on the prediction accuracy, and the blockchain hierarchical model is helpful to ensure the reliability and security of rural green credit data.