Access To Credit Research Articles

Sustainability and bank credit access: New evidence from Italian SMEs

We test whether firm sustainability positively affects access to bank credit. We carry out a panel data analysis of 125 listed Italian SMEs across 14 regions over 2017–2021. A quantitative score comprising 20 items grouped into three areas, disclosure, processes, and governance, is computed to determine the level of implementation of sustainable practices of sampled SMEs. Results show that SMEs with more sustainable orientation have greater access to bank credit and better ability to pay the cost of bank debt. This, in turn, reinforces bank-SME relationships. We contribute to the literature on SMEs, highlighting the relationship between sustainability and the availability of bank loans.

Do suppliers value clients’ ESG profiles? Evidence from Chinese firms

We investigate whether suppliers value their clients' ESG profiles in China, the largest emerging market featuring low ESG awareness and severe agency problems. We find a robust and negative impact of Chinese firms' ESG scores on their access to trade credit. The 2SLS regression results based on the instrumental variable indicate that the impact is casual. Additionally, the impact is more pronounced for firms with higher agency costs, greater information asymmetry, worse financial performance, and larger ex-ante default risk. These results suggest that suppliers in China view clients' ESG engagement as costly investments caused by agency problems. Finally, we highlight the economic importance of ESG's negative impact on trade credit by showing that trade credit access helps Chinese firms decrease debt costs, increase trade credit provision to downstream firms, and promote R&D inputs.

Effect of Credit Access on Innovation Activities in Smes: a Mediating Role of Bribery and Bargaining Power

The paper uses data from 104 developing countries varying from 2010 to 2019 period to examine the effect of credit access on firm innovation. The paper first regressed the model with full sample, then with sub-sample by size, legality and bribery to check the moderation effect of bargaining power and bribery. The findings of the regression analysis demonstrate a favorable relationship between corporate innovation and loan access. For companies with higher negotiating strength (proxies by firm size and legality), this effect becomes more significant. However, the influence of financial availability on corporate innovation is likely to be hampered by the perception of bribery. Finally, the paper brought some policy implications to the paper, especially for developing countries.

Food security and sustainability through adaptation to climate change: Lessons learned from Nepal

Climate change adaptation strategies play a crucial role in smallholder farm households' food security and sustainability, particularly under climate change extremes. This study, therefore, examines the role of climate change extremes and smallholder farmers' adaptation strategies in preventing food insecurity in Nepal. Data was collected in 2021 from 400 smallholder households in three agro-ecological zones, namely Mountains, Hill, and Terai. Around 12 % of households were found to be food insecure based on food consumption scores. However, another food security indicator reduced coping strategy index, showing that about 22 % of the households used different short-term strategies to cope with food insecurity. Results from the ordered logit models show that exposure to drought (climate change extremes) adversely impacts the food security status of the households in each study area. Conversely, adopting various adaptation strategies, such as irrigation, agroforestry, and temporary migration, positively impact household food security. In addition, the findings highlight the importance of household head education, market, credit, and information access in enhancing the adaptive capacity of smallholder farmers to cope with food insecurity. As a recommendation, adaptation strategies to food insecurity should be carefully tailored to each agro-ecological zone's specific socio-economic and institutional characteristics.

Machinery Adoption and Its Effect on Maize Productivity among Smallholder Farmers in Western Kenya: Evidence from the Chisel Harrow Tillage Practice

A major component of contemporary agriculture is machinery. Nonetheless, in Kenya and other African nations, the rate of adoption of agricultural machinery remains quite low. Understanding the fundamental causes and their impacts on agricultural output is crucial. Using data collected from a household survey of 1,499 farmers in Western Kenya, this study employed the endogenous switching regression model to examine the use of chisel harrows and their effects on maize production. Results show that the adoption of the chisel harrow was positively impacted by factors such as farm size, credit accessibility, gender, extension contact, and education attainment, while factors such as age and market proximity had a negative impact. The yield per hectare was higher for adopters than for non-adopters. According to the counterfactual analysis results, those who utilized chisel harrow tools were able to achieve a higher yield (1512 kg/ha) than they would have if they had not used the equipment (1099 kg/ha). The average maize yield per hectare increased by 413 kg and 217 kg for adopters and non-adopters, respectively, when chisel harrows were used. It is concluded that while training and field demonstrations may also be held to increase farmers’ understanding of the benefits of the chisel harrow, encouraging farmers to adopt the tool has the potential to improve low production in the surveyed regions.

Credit access and housing insecurity: Evidence from winter utility shutoff protections

Fifty-six percent of urban renters face some level of housing insecurity. I explore the role of credit access, or lack thereof, as a contributing factor. To do so, I study a temporary line of credit extended to households in the form of protection from heat shutoffs during the winter. These protections allow households to delay winter energy payments without risk of losing their heat. I adopt a triple difference-in-differences (DDD) approach, leveraging variation in states’ shutoff protection dates and census tracts’ average energy burdens. I estimate that the temporary extension of credit reduces the eviction filing rate by 4% in census tracts with high energy burdens. I provide suggestive evidence that eviction filings do not spike after the temporary credit access ends, implying a net negative effect of temporary credit access on filings over the entire year. I further demonstrate that a 3% increase in rental payments explains the decline in eviction filings, which is consistent with access to credit allowing renters to smooth consumption.

Risk-Based Bank Rating (RBBR) Method Using Risk Profile, Good Corporate Governance, Earning, and Capital (RGEC) Factors as an Assessment of Bank Health: Case Study of PT Bank Pembangunan Daerah Jawa Timur Tbk Period 2018-2022

Banks play a very important role in driving the wheels of the country's economy because they provide credit access facilities and provide interest rates to people who want to save. Through Bank Indonesia Regulation Number 13/1/PBI/2011, Bank Health Level Assessment using the Risk-Based Bank Rating (RBBR) method using Risk Profile, Good Corporate Governance, Earning, and Capital (RGEC) factors is a method for assessing how healthy a bank is. This research wants to assess the health level of Bank Jatim through the financial ratios in the Financial Report. The data used are ROA, ROE, NPL-Gross, LDR, BOPO, NIM, CAR, and the results of GCG self-assessment reporting which follow factors. As a result, the Risk Profile factor decreased in 2020 and 2021 and improved in 2022. The Earnings factor decreased in 2021 and 2022 compared to 2019. The GCG factor increased in 2019 but the trend is stagnant until 2022. The Capital factor decreased in 2019 and experienced a positive increase from 2020 to 2022.

Sustaining beyond the production of cocoa for beans: The preference and impact of products from the cocoa husk

The cocoa pod husk, a waste in most cocoa farms, has recently received alternative uses in various industries. To cocoa farmers, potash and black soap are their main products from the husk. This alternative use presents an excellent opportunity for improving the livelihoods of cocoa farmers. Nevertheless, there is sparse evidence of farmers' willingness to produce black soap and its potential implication on their welfare. We employed a multistage sampling approach to close this gap to draw data from 150 cocoa farmers from Ahafo Ano North District, Ghana. We analysed the data with binary probit, ordered probit and Inverse Probability Weighted Regression Adjustment. We found that marital status, membership of FBO, knowledge of black soap production, and credit access influence farmers' willingness to produce (WTP) black soap. Again, gender, marital status, age, farm income, farming experience and knowledge of black soap have a significant but heterogeneous effect on the tipping point that stimulates farmers' willingness to accept (WTA) black soap production. The impact assessment revealed that black soap production has substantial welfare gains. Thus, it increases farmer's per capita expenditure. Therefore, stakeholders like the Cocoa Research Institute, Ghana COCOBOD and cocoa-licensed buying companies should invest in procuring portable ashing kilns at subsidised prices and train farmers on packaging and labelling to expedite, revitalise and modernise black soap production. Notwithstanding, future research could look at the profitability analysis of black soap production.

Evaluation of the Factors Affecting Mobile Money Operators’ Credit Access: A Case Study of Lusaka Central Business District.

Background: The government of the Republic of Zambia had long emphasized the significance of fostering economic growth through enhanced access to financial services. However, the persistent issue of income inequality and sluggish economic expansion underscored the need for targeted interventions. In response, the emergence of Mobile Network Operators (MNOs) in the financial sector, offering a diverse range of services including credit access, represented a concerted effort to address these challenges. Despite these advancements, a comprehensive understanding of the determinants of MNOs' credit access remained lacking, particularly in the specific context of the Lusaka central business district. Consequently, the primary purpose of this study was to rigorously evaluate the various factors that influenced mobile money operators' access to credit within the Lusaka central business district of Zambia. Method: This research employed a case study research design to investigate the factors that influenced credit access for Mobile Network Operators (MNOs) in the Lusaka central business district. A mixed-methods approach was adopted, combining quantitative and qualitative data collection methods. The study's sample consisted of 125 MNOs, which were selected through a combination of simple random sampling and purposive sampling to ensure a representative cohort of respondents. This approach facilitated a holistic exploration of the various factors that impacted credit access among MNOs. Results: The study's findings highlight several key determinants of credit access among mobile money operators. Demographic factors, such as age, emerge as influential, with youths aged 20-34 demonstrating both technical proficiency and a better grasp of credit information. Education levels also prove to be correlated with mobile money service operation, as respondents with higher education levels exhibit greater ease in accessing and understanding mobile money credit services. Network availability emerges as a pivotal factor driving the adoption of mobile money services. However, a notable proportion of respondents expressed challenges in accessing credit through mobile networks. Trust and security concerns are identified as significant barriers deterring potential users from engaging with mobile money services. Conclusion: In light of the study's findings, it is recommended that comprehensive awareness programs be implemented within central business district schools. These programs aim to equip budding entrepreneurs with the knowledge and skills necessary for responsible engagement with mobile money services. By targeting the youth demographic, these initiatives seek to instil soundfinancial habits from an early age, thereby contributing to improved financial access, reduced income inequality, and enhanced economic growth in the Republic of Zambia.

Integrated Community‐Based Nutrition Interventions Improve Diet Quality, Food, and Credit Access among Rural Women in Northern Ghana

Globally, micronutrient deficiencies are widespread in women due to poor diet quality and elevated needs of the subgroup. Undernutrition, specifically micronutrient deficiencies, is a major problem in Ghana, especially in northern Ghana during the prolonged dry/lean season. Recent data indicate high prevalence of poor‐quality diets intake among women, which buttresses the observed high prevalence of micronutrient deficiencies in northern Ghana. In this study, we investigated the potential of integrated community‐based interventions (ICI) to improve diet quality and food access in a quasi‐experimental study. The experimental design comprised an experimental group of women (n = 150) from the Sakaa and Nakolo communities and a control group of women (n = 123) from the Bonia and Bugani communities. The experimental group was provided with credit access and solar‐powered irrigation facility for dry‐season community gardening, while the control group had access to only credit. The study revealed that during the dry/lean season, when food and nutrition insecurity is historically at its worst, ICI significantly improved diet quality (p ≤ 0.0001), access to food, and credit access. Our findings suggest that ICI is an effective approach in tackling food and nutrition insecurity in Northern Ghana than standalone interventions. While the findings from our study are encouraging, we acknowledge that more long‐term research is necessary.

Determinants of Khat Farmers’ Awareness of Agricultural Insurance: Evidence of Igembe North Sub County, Meru County, Kenya

In Kenya, majority of farmers rely on rain-fed agricultural systems hence making risk and uncertainty an integral part of farming. Weather conditions can directly impact agricultural output and performance. Mitigating these hazards is a top objective for avoiding revenue loss and improving smallholders' wellbeing. Agricultural insurance, a long-standing idea, is now recognized and supported by public and private organizations as a crucial risk management instrument in light of climate change concerns. Awareness of agricultural insurance plays a crucial role in its adoption, as it helps individuals understand the benefits and protections it offers against unexpected agricultural financial losses. Ultimately, widespread understanding of insurance options and their value can lead to higher adoption rates, ensuring more individuals and families are adequately protected. This paper's data was collected from 323 khat farmers in Meru County, Kenya. According to empirical findings, credit access and occupation had a positive and significant effect on awareness of agricultural insurance. The farmer's age and the gender of the household decision maker had a negative and significant effect on awareness of agricultural insurance. This study finds that credit access has a significant impact on khat farmers' awareness of agricultural insurance. The study found that awareness was proportionate to loan access hence recommends strengthening farmers' credit facilities to access more financial resources. The findings of this study will provide decision-makers with evidence-based tools for effectively marketing and establishing demand-driven insurance solutions to fulfil the needs of khat farmers.

Effects of water, energy, and food security on household well-being.

Water, energy, and food insecurity are significant challenges that affect both economies and households, particularly in developing countries. These resources have an effect on households wellbeing, businesses, and all sectors of the economy, making them critical to ensuring household well-being, which is frequently measured by quintile welfare. As a result, there has been a significant increase in interest in securitizing these resources in order to mitigate their negative effects on household's wellbeing This study provides an empirical investigation of the determinants of water, energy, and food (WEF) security and the effect of water, energy, and food security on household well-being in Ghana. This study provides an empirical investigation of the determinants of water, energy, and food (WEF) security and the effect of water, energy, and food security on household well-being in Ghana. The study used a sample of 2,735 households from the Ghana Living Standard Survey (GLSS) Wave 7. We applied an instrumental variable probit, complementary log-log and ordered Probit estimation techniques for analysis. Empirical analysis reveals several important findings. Firstly, factors such as age, credit access, household location, employment status, and livestock ownership positively contribute to household water security, while remittances, water supply management, water bills, and water quantity have negative impacts. Secondly, age, marital status, household size, remittances, and livestock ownership significantly influence household energy security. Thirdly, marital status, household income, credit access, and household size are crucial determinants of household food security, with residence and region of household location exerting negative effects. Additionally, while water and energy security have a relatively lower impact on household well-being, food security emerges as a key driver in promoting household wellbeing. The study recommends that policymakers and stakeholders design and implement robust programs and interventions to sustain households' water, energy, and food supply.

Profitability of Utilizing High Quality Cassava Flour (HQCF) in Confectionery/Bakery Firms in Parts of North Central Nigeria.

High Quality Cassava Flour (HQCF), derived from cassava tubers, is a significant meal component due to its high carbohydrate content and various benefits The study investigated the profitability of using HQCF in confectionery and bakery firms in North Central Nigeria. Data was collected from 78 confectionery and bakery firms and 710 workers using structured questionnaires and analyzed with SPSS 23. The study found that most workers were male (62.8%), aged 21-40 (50%), married (75.6%), and had tertiary education (68.0%). Most earned below ₦100,000 monthly, with additional income sources. Key economic factors included land acquisition (61.3% self-purchased), credit access (85.9% from banks), and external financial assistance (91.0%). Firms awareness of government policies on HQCF was high (87.2%), and profitability was significant, with ₦1 invested generating ₦3.76k in revenue. Market availability and cooperative societies for bakers were crucial for success. The study concluded that using HQCF in confectioneries and bakeries in the FCT, Benue, and Nasarawa states is profitable. It revealed that most firms have been losing profit due to non-compliance with policies requiring the inclusion of HQCF in their products. This non-compliance emanates from lapses in policy enforcement. To address this issue, the government should enforce existing policies through relevant agencies. Furthermore, the government should support HQCF availability, offer more credit access, and provide training programs to ensure the sustainability and profitability of HQCF in Nigeria.

Credit Access and Market Access: Evidence From a Portuguese Credit Guarantee Scheme

Credit Access and Market Access: Evidence From a Portuguese Credit Guarantee Scheme

A STUDY OF AGRICULTURE CREDIT SYSTEM IN TELANGANA

This article delves into the intricate landscape of agricultural credit in Telangana, emphasizing its pivotal role in driving rural prosperity and sustainable development. Through a comprehensive analysis, it examines the eligibility criteria, components, and significance of crop loans, alongside the implementation and impact of the Crop Loan Waiver Scheme. Furthermore, it elucidates the crucial role played by the State Level Bankers Committee (SLBC) in coordinating credit allocation and fostering collaboration among stakeholders. Despite the advantages offered by agricultural credit schemes, challenges persist, including implementation effectiveness and disparities in credit access among vulnerable groups. Drawing on findings, the article proposes actionable suggestions to enhance the efficiency, inclusivity, and sustainability of agricultural credit initiatives in Telangana, emphasizing the importance of targeted interventions and farmer-centric policies for fostering holistic agricultural development and uplifting rural communities.

Effect of climate risk adaptation on food security among farming households: The case of Nigeria

Climate risk is a major threat to the sustainable food production of many farmers who depend on rainfed agricultural systems. In response to this threat, climate-smart agricultural innovations, such as drought-tolerant and early mature crop varieties, have been developed and promoted. It is well-known that adopting innovations and improved technologies positively impact adopters' well-being. Therefore, this study sought to determine the factors influencing the adoption of climate risk adaptation strategies and subsequently estimate how food security is affected by the adoption using questionnaire survey data from 1,080 farming households across six agro-ecological zones. The data were analysed using different matching techniques and Endogenous Switching Regression (ESR). The model results reveal that access to extension, crop-related and weather information, access to credit and climate change awareness of farmers increase the adoption likelihood of the climate risk adaptation strategies. Adoption of climate risk adaptation strategies positively impacts the food security of farming households as it increases their dietary diversity score and reduces the food security coping strategy index. Enhancing the accessibility of the drought-tolerant and early mature varieties, promoting crop-related and weather information through extension services, and empowering farmers through credit accessibility would strengthen the adoption of climate risk adaptation strategies to increase food security.

Ecosistema de la Economía Violeta en la Ciudad de Cuenca, una alternativa económica con enfoque de Género

This research provides an in-depth analysis of the current labor conditions for women, focusing on gender inequality, occupational segregation, and the persistent wage gap. The primary objective was to ascertain the level of job satisfaction among women in Cuenca by integrating the concept of the violet economy, which emphasizes the inclusion of rural parishes. A non-experimental, quantitative methodology was utilized. Data were collected via a survey conducted with 96 women operating formal businesses under the auspices of the Prefecture of Azuay in May and June 2023. Survey responses were operationalized into variables such as age, average monthly income, educational attainment, tenure, work hours, affiliation, and credit access. Additional variables were assessed using a Likert scale, with multiple responses analyzed through SPSS software. The findings reveal that entrepreneurial women generally lack fixed incomes or earnings above the basic salary, constraining their access to adequate living conditions. The overall job satisfaction level was classified as 'Moderately Satisfied.' Following the enactment of the violet economy law, women's participation becomes pivotal in narrowing the gender gap, empowering women, and achieving economic stability. This engagement is instrumental in fostering human development and reinforcing the nation's economic framework.

Experience of farmers using mobile phone for farming information flow in Boro rice production: A case of Eastern Gangetic Plain

Mobile phones are widely used for personal communication, but their use for agricultural purposes is scarce in the Eastern Gangetic Plain. Given Bangladesh's heavy reliance on rice production, particularly dry season, the study addresses the gap in the literature by investigating farmers' perceptions and examining the factors that influence mobile phone usage and its impact on Boro rice production. The research entailed questionnaire surveys with 150 farmers from highly Boro-intensive regions. A perception index was used to gauge mobile phone acceptance, and Ordinary Least Square (OLS) and logit models were employed to analyze the factors affecting mobile phone usage and their influence on production levels. The perception index highlights various benefits, including easy access to farming and market information, prompt responses from extension officers, utilization of mobile apps for disease detection, and participation in online training and seminars. The logit model underscores the significance of educational status, credit access, household income, and extension services on the informative use of mobile phones among Boro rice farmers. The OLS findings showed that the informative use of mobile phones significantly increases Boro rice production by 1.6–4.5%, indicating that farmers with better access to farming information achieve higher production than non-users. Factors such as selling price, rainfall, credit availability, cultivable land, and farming experience significantly influenced Boro rice production. Overall, the study is rooted in the growing significance of mobile technology for disseminating crucial agricultural information. It seeks to thoroughly investigate its potential impact on Boro rice production, contributing to well-informed policy interventions and promoting sustainable agricultural development in the Eastern Gangetic Plain.

Racial Protests and Credit Access

Racial Protests and Credit Access

Credit Access and Productivity of Green Small and Medium Size Enterprises in Rural Nigeria

ABSTRACT: Small and Medium size Enterprises (SMEs) have played critical roles in developing great economies over the years but are being stalled in African economies. Literature posits that the variation is largely due to limited finance for SMEs in Africa. SMEs in Nigeria have not performed credibly well over the years with its contribution to the GDP still below 5%. The consequences of climate change on agro-based firms further creates the need for credit to boost productivity. As relevant as this might be, existing empirical research seldom examined the effect of credit access on productivity of green SMEs in Nigeria. The emphasis on green SMEs is essential due to its sustainability attribute. It is on this premise that this study examines the extent to which green SMEs access credit and how it impacts on their productivity in rural Nigeria. The specific objectives are therefore: to identify the determinants of access to credit for green SMEs in rural Nigeria; and to establish to what extent access to credit affects capital, labor and total factor productivity of green SMEs in Rural Nigeria. The study employed nation-wide–General Household Survey (2016) data, for its analysis. A logit model and the propensity score matching model were used to ascertain the objectives. The justification of the propensity score model lies in the fact that it estimates an average treatment effect from observational data. The findings show that, sex, years of schooling, capital, collateral requirement, amount of loan experience and interest rate are significant determinants of credit access in rural Nigeria, while age and labor are not. Finally, the study shows that access to credit significantly affects labor productivity but does not significantly affect capital and total factor productivity. The study recommends that the conditions for credit to the agricultural sector should be revised to ensure that credits are robust enough to generate significant impacts on capital and total factor productivity. Also, green SMEs need to be prioritized in accessing credit to incentivize other farmers to do same.