Local Financial Development and Household Welfare: Microevidence from Thai Households

Gloede, Oliver; Rungruxsirivorn, Ornsiri

doi:10.2753/ree1540-496x490402

Cited by 10 publications

(3 citation statements)

References 33 publications

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“…Following Bernd Hardeweg and Hermann Waibel, a household includes the household head and all persons who live in the household for at least 180 days per year (2009). All these persons were defined as nucleus household members (Gloede and Rungruxsirivorn 2013).…”

Section: Empirical Frameworkmentioning

confidence: 99%

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Sohns

Diez²

2017

Geographical Review

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The following paper analyses whether becoming self‐employed can help to reduce the vulnerability to poverty of rural households. We use data collected during four survey waves in three rural provinces in Vietnam to calculate region‐specific logistic panel regressions. The results show that becoming self‐employed increases the likelihood of poor households escaping poverty, but only if they are located in a regional economic environment characterized by an advanced stage of structural change, good infrastructural conditions, and proximity to markets. In less well‐developed regions, becoming self‐employed is not sufficient to increase the probability of poor households escaping poverty. What matters more is that self‐employment is driven by opportunity and not by necessity. However, even opportunity‐driven self‐employment does not guarantee a reduction of vulnerability to poverty in all regional settings and for all household types. Especially, regional overspecialization in cash‐crop production and inequality in access to assets have to be taken into account. In times of declining commodity prices, self‐employment entails a risk of business failure in regions that are overspecialized in cash‐crop production. For households whose initial investment is high and whose endowment with social and educational assets is low, this can result in increased vulnerability to poverty.

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Section: Empirical Frameworkmentioning

confidence: 99%

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Sohns

Diez²

2017

Geographical Review

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“…For example, studies have examined the impact of microcredit on welfare (Khandker, 1998;Morduch, 1998;Akotey & Adjasi, 2016) and the impact of access to welfare via its effects on consumption smoothing (Bae, Han, & Sohn, 2012;Gloede & Rungruxsirivorn, 2013;Hacamo, 2014). In micro-analysis studies, overindebtedness is indicated by debt repayments that are greater than the income poverty line, which clearly reveals the link between debt and poverty (Russell et al, 2011;D'Alessio & Iezzi, 2013;Ntsalaze & Ikhide, 2016a).…”

Section: Introductionmentioning

confidence: 99%

The threshold effects of household indebtedness on multidimensional poverty

Ntsalaze

Ikhide

2017

IJSE

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DeclarationBy submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification.This dissertation includes two published and one accepted but not yet published original papers in peer-reviewed international journals. The fourth paper representing chapter eight is ready for submission for peer review. The development and writing of the papers (published and unpublished) were the principal responsibility of myself and, for each of the cases where this is not the case, a declaration is included in the dissertation indicating the nature and extent of the contributions of co-authors. AbstractGlobal household indebtedness has reached unprecedented levels over the past few decades.The household sector has had to cope with significant losses in income and wealth as well as the burden of debt service since the beginning of the financial crisis. Research focus on this phenomenon, together with its social implications, has grown. This study uses the National Income Dynamics Study (NIDS) data to empirically investigate the effects of household debt on multidimensional poverty. This was achieved through four independent research papers meant to address different angles of the subject. Chapter 5 provides a snapshot of the prevalence of over-indebtedness, using various international indicators and the National Credit Regulator (NCR) indicator, and describes which households are over-indebted. A total of eight percent of South African households are overindebted, and 61.4 percent of those households are found in the lowest income category (R0 -R2 000), spending more than 45 percent of their household income on debt repayments, which is beyond levels that are considered sustainable. The alarming revelation is that, according to the unsecured debt indicator, 15.2 percent of households are over-indebted, while 11 percent of households are driven below the relative income poverty line after making debt repayments. Stellenbosch University https://scholar.sun.ac.za 3The racial distribution indicates that households headed by Africans are overrepresented (79%).Most over-indebted households are found amongst those who own their places of residence (78.6%), do not receive government grants (71.7%), are male (53.8%), and have an unemployed household head (53.5%).Chapter 6 examines the presence of thresholds in the debt-poverty nexus at micro level, i.e. the tipping point above which debt is associated with more multidimensional poverty. By applying the Generalised Additive Model (GAM) using regression splines, the study finds the existence of critical tipping points between household debt service-to-income ratio and multidimensional poverty along with other explanatory variables (age...

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“…This impact has been observed in various contexts, including in the Mezam district of North-West Cameroon where Atamja and Yoo (2021) found that households that either save formally or informally increase their consumption level, and hence their welfare. Access to finance has also been found to have positive impacts on overall household expenditure in India (Shetty, 2008), household investment in Thailand (Gloede & Rungruxsirivorn, 2013), income (Addury, 2018;Ibrahim & Aliero, 2020;Shetty, 2008), as well as assets and empowerment (Nanziri, 2018;Shetty, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

The Welfare Effects of Formal and Informal Financial Access in the Gambia: A Comparative Assessment

Manja

Badjie²

2022

SAGE Open

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The aim of this study was to comparatively assess the impact of formal and informal finance on household welfare in the Gambia. The Gambia 2015 to 2016 Integrated Household Survey (IHS3) data was analyzed using Stata software version 17.0 to assess the impact of access to the various forms of finance on household food and non-food consumption expenditures, education expenditure, total income, and a subjective assessment of welfare. The study found that access to either formal or informal finance has some deleterious impacts on welfare, with the negative impacts from formal finance being generally lesser than those from informal finance, signaling that the different forms of finance have near-varying repercussions on household welfare. Access to and conditions of formal finance should be improved by removing or making less stringent the requirements, most of which are hard for households to meet.

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Local Financial Development and Household Welfare: Microevidence from Thai Households

Cited by 10 publications

References 33 publications

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

The threshold effects of household indebtedness on multidimensional poverty

The Welfare Effects of Formal and Informal Financial Access in the Gambia: A Comparative Assessment

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