A decomposition analysis of microcredit welfare gaps in Ghana. A gender analysis

Amanor, Kofi; Oteng-Abayie, Eric Fosu; Osei-Fosu, Anthony Kofi; Frimpong, Prince Boakye

doi:10.1016/j.ssaho.2023.100464

Cited by 3 publications

(10 citation statements)

References 36 publications

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“…Microfinance has proven to be an effective tool for poverty reduction in developing countries. If microfinance is implemented and managed carefully, and when services are designed to meet the needs of business actors, microfinance has a positive impact not only on business actors but also on families and the wider community (Shahinpoor, 2009;Addae-Korankye, 2012;Bel hadj Miled & Ben Rejeb, 2018;Amanor et al, 2023).…”

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

“…Microfinance has experienced very rapid development in the last two decades. Since the success of the Grameen Bank program introduced by Muhammad Yunus (Nobel Peace Prize winner in 2006) in Bangladesh in the early 1980s, world financial institutions have begun to pay great attention to microfinance to alleviate poverty and also make a profit (Rahim Abdul Rahman, 2010;Awaworyi Churchill & Marr, 2016;Mushtaq & Bruneau, 2019;Awaworyi Churchill, 2020;Bansah & Adjei, 2023;Amanor et al, 2023).…”

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

“…It is found from related literature that microfinance positively impacts poverty alleviation and is an effective tool for poverty reduction in many countries, including India, Nigeria, Ghana, South Asia, Vietnam, Latin America, the Caribbean, Uganda, Ethiopia, and Tanzania. When implemented and managed carefully, and when services are designed to meet the needs of business actors, microfinance has a positive impact not only on business actors but also on families and the wider community (Belwal et al, 2012;Beisland & Mersland, 2012;Cristabell & Vimal Raj, 2012;Obadeyi, 2015;Awawory & Marr, 2016;Akingunola et al, 2018;Fiala, 2018;Thanh et al, 2019;Khan et al, 2022;Amanor et al, 2023;Bansah & Adjei, 2023).…”

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

“…Microfinance has emerged as a new promise for alleviating poverty and improving the limited access to financial services by offering small loans to people experiencing poverty, with no pledged collateral requirement. Due to the unique features of microfinance, the credit relationship between the lender and the borrower is considered to be the foundation of the business (Abbas & Shirazi, 2015;Awaworyi Churchill & Marr, 2016;Lahkar & Pingali, 2016;Sim & Prabhu, 2017;Thanh et al, 2019;Mushtaq & Bruneau, 2019;Awaworyi Churchill, 2020;Li et al, 2022;Bansah & Adjei, 2023;Amanor et al, 2023) Microfinance Institutions (MFI) are financial institutions specifically established to provide business development and community empowerment services, either through loans or financing in micro-scale businesses to members and the community, managing savings, as well as providing business development consulting services that are not solely seeking profit (RI Law, 2013) MFI aims to (a) increase access to microscale funding for society, (b) help increase economic empowerment and community productivity, and (c) help increase the income and welfare of the community, especially the poor and low-income communities (Bhuiyan et al, 2011;Bhuiyan et al, 2012).…”

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

“…The community needs Microfinance institutions, especially for low-income groups and small and micro-entrepreneurs who have not been reached by banking financial services, especially public banks. In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills (Shahinpoor, 2009;Rahim Abdul Rahman, 2010;Awaworyi Churchill, 2020;Amanor et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

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The role of sharia microfinance institutions in developing MSMEs

Isfianadewi

2024

IJRBS

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This study aims to investigate and identify the current conditions regarding the role of Sharia microfinance institutions in developing MSME businesses. The community needs Microfinance institutions, especially low-income groups and small and micro-entrepreneurs who have yet to be reached by banking financial services, especially public banks. In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills. This research will use a qualitative approach with a case study method, which does not use statistical generalizations but uses logical generalizations and replication. Three Sharia microfinance institutions and sixteen MSME cases will be selected in this research. The research was conducted at Sharia Microfinance Institutions as providers of microcredit and MSMEs receiving microcredit in the Southern region of the Special Region of Yogyakarta, Gunungkidul, and Kulonprogo. This research will use three data collection methods, namely interviews, observation, and documentation, to maintain the validity and reliability of the data. Data triangulation is used to test the validity of the data. The data analysis process in this research uses two stages: descriptive analysis and case analysis. The findings of this research show hope regarding the promise of easy access to capital or funding sources as an effective tool for improving MSME business development through effectiveness, supervision, and guidance carried out by Sharia microfinance institutions. This change can be realized if the community has economic stability obtained through easy access to capital, increasing business income, and empowering the community to be ready to become entrepreneurs. It supports the development of a creative economy industry based on entrepreneurship and globally competitive ethics.

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Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

Section: Sharia Microfinance Institutions In Developing Msmesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The role of sharia microfinance institutions in developing MSMEs

Isfianadewi

2024

IJRBS

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The impact of financial inclusion on rural–urban households welfare inequality in Ghana: A decomposition analysis

Tawiah,

Sakyi,

Ayibor

et al. 2024

Review Development Economics

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This article examined the impact of financial inclusion on rural–urban households' welfare inequality in Ghana using nationally representative survey data sourced from the seventh round of the Ghana Living Standard Survey. The article used a multidimensional financial exclusion index and the real per adult equivalent measures of total annual household consumption expenditure as measures of financial inclusion and welfare, respectively. The article employed the instrumental variable estimation technique to account for the issues of endogeneity and sample selectivity bias associated with measuring financial inclusion. The estimated results from recentered influenced function‐Ordinary Least Squares of the unconditional quantile regression and the Oaxaca‐Blinder techniques show significant rural–urban welfare gaps in favor of urban households at the mean and across the selected quantiles. The study also found that differences in financial inclusion between rural and urban households contribute significantly to the welfare gaps, while the economic returns to financial inclusion reduce the welfare gaps both at the mean and the selected quantiles. The study recommends that policies aimed at improving financial inclusion as well as strengthening financial institutions in rural areas be put in place to help reduce the rural–urban welfare inequality in Ghana.

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Microfinance practices versus sustainable welfare

Isfianadewi

2023

IJBES

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This study primarily investigates microfinance practices for sustainable community welfare. Microcredit aims to provide credit to poor people to help empower communities and reduce poverty. Community empowerment strategies can be carried out by increasing the productivity of poor communities to increase their income. A basic approach that emphasizes that the poor move from their current situation to a better position by empowering MSMEs through the distribution of microcredit by micro-financial institutions. Changes that will result in sustainable prosperity, decreasing inequality between regions, and reducing community income gaps. This research will use a qualitative approach using the case study method, which does not use statistical generalizations but uses logical and replicative generalizations. This research uses multiple cases with varying characteristics as research informants. Two microfinance institutions and ten cases of MSMEs will be selected in this research. The study was conducted at Sharia Microfinance Institutions as providers of microcredit and MSMEs receiving microcredit in the Southern region of the Special Region of Yogyakarta, Bantul. This district was chosen because Bantul has the highest poverty rate. This condition is the focus of attention for maximum treatment. This research will use three data collection methods: interview, observation, and documentation, to maintain the data's validity and reliability. Data triangulation was used to test the validity of the data. The data analysis process in this research uses two stages: descriptive analysis and within-case analysis. The research results found that microfinance practices carried out through Sharia Microfinance Institutions (SMFI), apart from focusing on providing accessible financing facilities, have also provided direction in developing MSMEs and taking action towards community welfare. SMFI regularly provides business development training to MSMEs

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A decomposition analysis of microcredit welfare gaps in Ghana. A gender analysis

Cited by 3 publications

References 36 publications

The role of sharia microfinance institutions in developing MSMEs

The role of sharia microfinance institutions in developing MSMEs

The impact of financial inclusion on rural–urban households welfare inequality in Ghana: A decomposition analysis

Microfinance practices versus sustainable welfare

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