PurposeThe continuous and rapid growth of remittances has become one of the sources of income for millions of poor families in developing countries. As such, an increase of remittance flow can have a significant impact on the ability of the household not only to get enough food but also to get nutritious foods. Therefore, this study investigates the implication of remittances on food security (FS) in 51 developing countries from 2011–2016.Design/methodology/approachA dynamic panel estimator is applied to examine remittances and FS nexus.FindingsBy using the dynamic panel estimator, the results indicate that the level of food supply tends to be higher in countries with a higher flow of remittances. This study justifies the need for high income as well as high middle-income countries to be more open and receptive to migration as this could indirectly the mean through which host countries can assist economic development in low-income developing countries.Originality/valueGiven the diverse measure of FS, past studies demonstrated a positive association between remittance and FS, but it may focus on only one dimension of FS. To the authors’ limited knowledge, this is not enough to know the importance of remittance in determining the overall FS status. Hence, this study wishes to extend the literature by using a more comprehensive measure of FS and more countries in the sample.
Purpose This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women micro-entrepreneurs in Malaysia within the framework of the informal credit market theory. Design/methodology/approach The study is based on primary data obtained by using self-administered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu. The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents. Total number of respondents valid for data analysis was however 600. Findings Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge. Research limitations/implications This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states. Practical implications As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses. The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs. Originality/value The informal credit market theory is frequently used in conventional studies. This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products.
There is an urgent call for a potential justification on how and to what extent customers (microentrepreneurs) of Ar-Rahnu institutions in Malaysia are successfully driven their living standards from B10 (hardcore poverty) to B40 (low income). This study classified Ar-Rahnu's adoption factors into three categories, namely, Shari'ah governance, uniqueness of Ar-Rahnu, and efficiency. 150 questionnaires were distributed to micro-entrepreneurs that used Ar-Rahnu and analysed using SmartPLS 3.0. Based on the results, it shows that Shari'ah governance has a low correlation and insignificant relationship towards Ar-Rahnu adoption. Stated differently, it means that customers find Shari'ah-compliance requirements not as important and it does not get in their way of getting instant cash from Ar-Rahnu. The other two constructs, namely as uniqueness and efficiency, have positive relationships with Ar-Rahnu adoption. It shows a significant and positive relationship with the Ar-Rahnu financing output. Unlike previous studies within the body of knowledge that mainly focuses on the adoption factors of Ar-Rahnu, this study went a step further by addressing the after-effect or impact of Ar-Rahnu adoption towards customers' wellbeing, especially in terms of financial wellbeing and have found positive results.
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