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Analyzing the Influence of International Remittances on Multidimensional Poverty: Insights from BRI Countries

ABSTRACT Efforts to facilitate international remittances hold substantial potential to impact various dimensions of poverty, underscoring the importance of comprehending this relationship in developing economies. International remittances between Belt and Road Initiative (BRI) countries have shown a marked growth trajectory. Unlike other studies that focus on the impact of remittances on income-based poverty in developing countries, this research delves into a more comprehensive analysis of how remittances affect various facets of poverty. Therefore, this paper aims to estimate the broader global implications of international remittances on multidimensional poverty in selected BRI countries. This study applied Driscoll-Kraay and Fully Modified Ordinary Least Square estimators to evaluate international remittances’ impact on MPI in BRI countries between 2010 and 2022. The results reflected a significant effect on countries that have contributed to the Belt and Road Initiative, with its impact on MPI courtesy of political stability, international remittances, agricultural growth, and forest plantation. Besides, the results of the Granger causality indicated a bi-directional causal link between forest plantation and MPI and a uni-directional causal link between MPI and international remittance. Countries along the BRI should enact policies to attract more remittances and design strategies to reduce unemployment and poverty.

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Development and Validation of a Financial Behavior Scale for Low-Income Earning Groups

ABSTRACT Most research studying financial behavior, including those studying the behavior of economically deprived sections, have ignored manual laborers. They are a segment that plays a significant role in economic development, but the lack of access to economic resources forces them to perform undesirable financial behaviors. Even though policymakers claim that removing stress in managing money is one way of achieving financial well-being, somehow, their financial empowerment has been overlooked in mainstream literature. This study aims to develop and validate a measure of financial behavior for the toiling class and to assess how different demographic segments vary in different dimensions of behavioral practices. An 18-item scale has been developed, taking input from several existing measures of financial behavior and considering the unique characteristics of the population. The behavioral attributes of 401 laborers were measured in Kerala, India. Factor analysis resulted in four components with coherent reliability. The alpha reliability of the whole scale was 0.864. A detailed analysis using demographic variables revealed that gender, age, and education are significant for most of the behavioral dimensions and overall financial behavior. The type of laborer was found to be significant for three behavioral dimensions. Other than providing a measure of financial behavior for students and researchers of economically deprived sections, a scale can help counselors, educators, and policymakers bring focused and constructive interventions into the lives of the poor.

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