The Effects of Credit Constraints on Economic Convergence: The Case of the WAEMU Countries

Diagne, Abdoulaye; Niang, Abdou-Aziz

doi:10.1007/978-1-4614-4415-2_7

Cited by 5 publications

(5 citation statements)

References 19 publications

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“…In many countries, women are subjected to the legal and social norms of inequality in access to financial, digital and property assets (Demirgüç-Kunt et al , 2013; Klugman and Tyson, 2016). Women are also constrained from financial activities because of the underlying traditions and patriarchal system of developing countries (Rose, 1992; Diagne et al , 2000; Goheer, 2003; Richardson et al , 2004; Faisel, 2004; Narain, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial inclusion and land ownership status of women

Balasubramanian

Kuppusamy

Natarajan

2019

IJDI

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Purpose The purpose of this paper is to empirically examine the influence of women’s land ownership status on their inclusion in developing economies. Design/methodology/approach The study adopted a cross-sectional analysis. Data were taken from Global Findex data of World Bank and Indices of social development. Data were analysed using limited information maximum likelihood to establish the relationship between usage of basic financial services and women’s land ownership status variables. The study considers different demographic, social and economic factors as control variables. Socio-economic gender equality index and land ownership status of men are considered as instrumental variables in the estimations for controlling endogeneity problem. Findings The study proves that there is a significant influence of women’s land ownership status on their demand and usage of basic financial services. The results show that women who own land alone have a significant relationship for formal account ownership and formal savings but are deprived of formal and informal credit. The results find that women are more likely to avail of formal credit when they are backed by someone else in the family especially men. Irrespective of the wealth quintile to which women belong, they are deprived of credit if they do not own any land. The findings also show that women in higher wealth quintiles are more active in availing credit. Research limitations/implications The study is limited to the extent of influence of women’s land ownership status on their demand for basic financial services. Practical implications The study recommends appropriate economic and financial policies to encourage women to own, possess and use their land for personal as well as entrepreneurial activities. The study also suggests for policies to encourage women for joint ownership of land for better credit availability. Social implications Formal institutions must be more favourable for women in providing credit facilities because women play an essential role in economic development in developing economies. Originality/value This study is the first of its type in providing empirical evidence that women’s land ownership status influences their demand for basic financial services in developing countries.

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Section: Literature Reviewmentioning

confidence: 99%

Financial inclusion and land ownership status of women

Balasubramanian

Kuppusamy

Natarajan

2019

IJDI

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“…The results show that the positive moderating effect of digital finance is only significant in the sample where the household head is male. Rural women are more likely to face credit constraints compared to men with equivalent socioeconomic conditions (Fletschner, 2009; Diagne et al. , 2000).…”

Section: Empirical Results and Analysismentioning

confidence: 99%

E-commerce participation, digital finance and farmers' income

Yi,

Yao,

Sun

et al. 2023

CAER

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PurposeIt is imperative to achieve sustainable growth in farmers' earnings to sustain poverty alleviation efforts and achieve rural revitalization goals. The authors investigated the nature of the non-linear relationship between farmers' e-commerce participation and income growth, analyzed the rationale behind this correlation and examined the moderating effect of digital finance on this relationship.Design/methodology/approachThe authors conducted an empirical investigation using rural household data from the China Household Finance Survey and the regional digital finance index compiled by Peking University. The authors employed a fixed-effect model and a moderating effect model to identify the non-linear influences of e-commerce participation on farmers' income and to analyze the positive synergies of digital finance. The authors used identification and estimation techniques to mitigate the endogeneity problem, specifically employing heteroscedasticity-based instruments.FindingsThere is an inverted U-shaped relationship between e-commerce participation and farmers' income. Digital finance reduces the declining trend in the marginal effects of e-commerce and increases marginal values. Furthermore, the synergistic effect can promote the quality and efficiency of business activities by easing credit constraints, reducing risk aversion and stimulating innovative activities, which in turn can lead to sustained revenue growth.Originality/valueFew studies have focused on the non-linear relationship between e-commerce and farmers' income. This implies that achieving sustained income growth using e-commerce alone is difficult. The synergy between e-commerce and digital finance is a feasible path for achieving this goal.

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“…The literature highlights numerous links between credit and agriculture. Firstly, credit access can boost agricultural productivity through the acquisition of productive inputs such as fertilizers and improved seeds (Diagne et al, 2000; Diagne & Zeller, 2001). Credit is crucial for agricultural productivity and sustainability (Akinbode, 2013).…”

Section: Conceptual Linkages Between Credit and Food Securitymentioning

confidence: 99%

Credit, gender, and food security: Empirical evidence of determinants to access, affordability, and consumption in Cameroon

Kyeremateng,

Molua,

Mvodo

et al. 2024

World Food Policy

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Despite receiving considerable attention, food insecurity remains a salient issue, especially in sub‐Saharan Africa. Among other factors, limited access to credit is one of the direct drivers of food insecurity. Hence, interventions such as credit, which improve household income, may be important in improving food security. While previous studies have evaluated the effects of credit on food security, the evidence is mixed. Moreover, neither the effect of the amount of credit nor the gender aspects have been adequately considered. In this paper, we evaluate the role of credit access on household food security. Beyond credit access, we also considered the amount of credit. Using cross‐sectional data from two unique regions of Cameroon, we estimated using ordered probit models, and to gain more insights, we performed a gender‐disaggregated analysis. Our results suggest that both formal credit access and the amount of credit are positively associated with the food security status of the household. However, informal credit access does not affect food security. The effects of credit are influenced by the gender of the household head as shown by our gender‐disaggregated results. We therefore recommend that policies that constraint households' access to formal credit should be relaxed.

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The Effects of Credit Constraints on Economic Convergence: The Case of the WAEMU Countries

Cited by 5 publications

References 19 publications

Financial inclusion and land ownership status of women

Financial inclusion and land ownership status of women

E-commerce participation, digital finance and farmers' income

Credit, gender, and food security: Empirical evidence of determinants to access, affordability, and consumption in Cameroon

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