Financial inclusion in developing countries: Do quality institutions matter?

Zeqiraj, Veton; Sohag, Kazi; Hammoudeh, Shawkat

doi:10.1016/j.intfin.2022.101677

Cited by 45 publications

(15 citation statements)

References 50 publications

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“…Moreover, following works like Zeqiraj et al (2022), Khan et al (2014), andKaasa (2003), principal component analysis could be applied to construct indicators of health and education, population and environmental conditions, sectoral growth and balance of payment factors, private investment, and public and social expenditures. Researching the link between such indicators and the income distribution could provide a spherical view of the evolution of income inequality in Greece and serve as the basis for the design of appropriate poverty combating policies.…”

Section: Discussionmentioning

confidence: 99%

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

et al. 2023

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We consider the impact of the two recent economic crises, one that resulted from the great recession of 2007–2009 and one following the COVID-19 pandemic, on income inequality and the risk of poverty in Greece. To this end, we also investigate the key macroeconomic variables affecting the Greek income distribution. We find that alternative measures of inequality and relative poverty have deteriorated during the years of crises, implying that the country’s response to economic shocks has been particularly harmful for its more disadvantaged citizens. Regarding the variables affecting the income distribution, we show that income inequality and the risk of poverty increase with growth, implying that the benefits of growth, and burdens of recession, are distributed unequally among members of the Greek society. Moreover, inequality appears to increase with unemployment and decrease with the share of wages and salaries in total income. This finding highlights the importance of labour market regulations and workers’ welfare for attaining equality. Finally, we provide evidence that, during pre-election periods, income inequality is reduced, meaning that the political budget cycles, which are characteristic of the Greek economy, generate gains in terms of equality, but these gains are short-lived and mainly benefit the middle bracket of the income distribution.

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Section: Discussionmentioning

confidence: 99%

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

et al. 2023

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“…They are called hybrid organizations aiming to achieve a double bottom line – the social performance to serve low-income households and the financial performance to sustain and scale up the outreach (Widiarto and Emrouznejad, 2015). Among the other factors such as competition (Hossain et al , 2020), capital structure (Parvin et al , 2020), governance (Mia, 2022) and financial stability (Zeqiraj et al , 2021), regulation has been a crucial factor influencing the performance of financial institutions (D’Espallier et al , 2017; Mustapha et al , 2021; Zeqiraj et al , 2017; Zeqiraj et al , 2022).…”

Section: Regulations and Their Impactsmentioning

confidence: 99%

Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions

Sangwan

Nayak

Sangwan

2023

JFRC

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Purpose Regulation is critical for sustainable microfinance sector growth. Under this premise, the study aims to examine the different regulatory noncompliance (RNC) practices prevalent in the operations of microfinance institutions (MFIs) at the ground level. Design/methodology/approach Both the quantitative and qualitative (observations, interviews and focus group discussions) techniques are used to extract the findings. Findings The study highlights the different RNC practices exercised by the loan officers at the field level in their microfinance loan disbursements. Originality/value This study is based on the primary data collected from microfinance clients. The arguments put forth for the RNC practices are extracted from direct personal interviews with the loan officers and the clients. The role of various dilemmas/circumstances of the loan officers and the beneficiaries that implicate the MFIs in RNC is highlighted.

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“…For market forces to function and enhance economic performance, there needs to be in place a well-functioning institutional environment―sound protection of property rights, contract enforcement, and rule of law [ 45 – 47 ]. A weak institutional environmental―weak property rights enforcement, corruption, political instability, unaccountable leaders, poor bureaucratic quality, and bad law enforcement undermines financial sector inclusion [ 48 ] and may also reduce its efficiency. Institutional quality encompasses the legal, political, and supervisory mechanisms that ensure the smooth operation of financial systems.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Country-level institutional quality and financial system efficiency: An international evidence

Khan,

Khan

et al. 2023

PLoS ONE

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The optimum economic outcome of financial system development depends on its level of efficiency. The purpose of this study is to investigate the effect of institutional quality on financial system efficiency. For empirical analysis, we have used a panel dataset of 108 countries from 1996–2020 and employed fixed effect regression and two stages least squares (2SLS) regression methods. The empirical results show that institutional quality has a significant positive effect on financial system efficiency. Particularly all the constituting elements—voice and accountability, political stability and absence of violence, regulatory quality, government effectiveness, rule of law, and control of corruption—of institutional quality are found to have a significant positive impact on financial system efficiency. Moreover, we found that the effect of institutional quality is more pronounced in countries with low-income levels and strong institutional quality. These findings are robust across several robustness tests conducted using additional controls, alternative methodologies, an alternative measure of institutional quality, and financial system efficiency. The results of the study suggest that policy makers should prioritize both enhancing and sustaining institutional quality to promote the efficiency of the financial system, which is crucial for sustainable growth and development.

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Financial inclusion in developing countries: Do quality institutions matter?

Cited by 45 publications

References 50 publications

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions

Country-level institutional quality and financial system efficiency: An international evidence

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