Improve Household Welfare Research Articles

The welfare impact of financial inclusion: does the source of financing matter? A GMM and channel analysis

PurposeThis study investigates how finance contributes to socioeconomic development through an inclusive financial system and the impact of financial inclusion programs pursued by non-bank financial institutions (NBFIs) in Ghana.Design/methodology/approachIn this study, we leverage a rich, nationally representative household survey (ICPSR, 2014) from 17 Ghanaian MFIs (1,629 households), sponsored by the World Bank, to analyze microfinance impacts using a generalized method of moment (GMM) and channel analysis.FindingsOur findings reveal a statistically significant positive impact of donor-funded financial inclusion projects on targeted households’ welfare, regardless of implementing agency (donor, government or microfinance institution). The channel analysis further suggests that credit unions and savings and loan (S&L) institutions may be particularly effective conduits for delivering these welfare gains through financial inclusion programs. These findings hold valuable insights for funders seeking to maximize the welfare impact of such interventions: credit unions and S&Ls may be preferential channels for delivering financial inclusion programs aimed at improving household well-being.Research limitations/implicationsThe poverty-reducing impact of informal non-bank financial intermediaries like credit unions and susu groups highlights the need for policies that integrate these institutions into the formal financial system. Therefore, donor-funded initiatives should not rely solely on local government implementation. Since the focus of this study is on Ghana, we caution readers to exercise caution when generalizing the findings to other jurisdictions.Practical implicationsThe World Bank/IMF-backed financial sector reform in Ghana has many important implications for financial inclusion and welfare impacts which are rare in other jurisdictions. Our finding has policy implications for agencies that wish to translate financial inclusion into significant economic inclusion, especially in middle- and low-income countries (LICs) where the COVID-19 pandemic and the global impact of the recent war in Ukraine could exacerbate the exclusion gap.Originality/valueThe focus of this study is to understand if MFIs, funded by different sources, can contribute to inclusive growth and welfare. This research employs channel analysis, considering that donor and government programs are often channeled through community-based NBFIs and offer key contributions to the existing body of knowledge on financial inclusion and household welfare. This study extends the current literature by providing a deeper understanding of the role of each NBFI type in deepening financial inclusion and improving household welfare and allows policymakers, donors and governments to target inclusion efforts for maximum impact.

Exploring Education-Induced Bargaining Power of Women on Household Welfare in Sub-Saharan Africa

Women’s education and empowerment have engaged the interest of policymakers and academics for many years. We employ individual-level data from Ghana and Uganda in this paper to offer a comparative analysis of the impact of women’s education and empowerment on six household welfare indicators: child labor, child school enrollment, female labor force participation, fertility rate, household food expenditure, and nutrition intake. Comparing the two countries is insightful due to their distinct socio-economic structures and cultural contexts, which might influence the dynamics of women’s empowerment differently. The study utilizes the Ordinary Least Squares (OLS) and Instrumental Variables (IV) regressions and provides a battery of robustness tests. The empirical results show that in a household, the woman’s and man’s education levels are significant determinants of household welfare. However, contrary to common assumptions, the woman’s education does not have a stronger effect than the man’s, and her relative bargaining position has negligible effects on the welfare indicators studied, at least for the cases of Ghana and Uganda. Further sensitivity checks support these findings, suggesting that female education can improve household welfare, but its impact may not necessarily operate through enhanced bargaining power within the household.

The economywide impact of bioethanol production in South Africa

Bioethanol production as a substitute for petroleum in road transport fuels has been identified as a potential partial solution to environmental and socioeconomic challenges facing developing countries, including South Africa. Biofuels in motor vehicles emit fewer GHGs relative to conventional fuels, and their production can lead to economic growth and associated socioeconomic outcomes, including increased labour employment and improved household welfare. The objective of this paper was to quantify the socioeconomic impact of bioethanol production in South Africa using sugarcane as a feedstock and to assess the effects of increasing the size of the bioethanol plant. The study is based on the 2018 KwaZulu-Natal and South African Social Accounting Matrices (SAM), and two assumed scenarios are considered, namely a scenario where only export destined sugarcane is used to produce bioethanol (scenario I) and a scenario when all sugarcane is used to produce bioethanol (Scenario II). The SAMs modified from the SAMs initially compiled by Conningarth Economists were used to develop an input–output multipliers economic impact model. The production of bioethanol from sugarcane was anticipated to have positive socioeconomic impacts namely, an increase in the country’s GDP, employment growth, gross-capital formation, positive contribution to fiscus, improvement in household welfare and positive contribution to the balance of payment (BOP). Expanding the size of the bioethanol plant is expected to magnify the impacts. The study, therefore, recommends a removal of bottlenecks in bioethanol expansion, including high feedstock cost, limited investment, and absence of mandatory blending policy, amongst others.

Foreign or Domestic Public Debt for Cameroon’s Development? An Externality Approach

Public debt plays a major role in financing projects that support economic growth and sustainable development. As governments may choose between domestic and external borrowing, a comprehensive assessment of their effects would support this choice. Our study provides an integrative view of economic and social outcomes and compares, through externalities, the impacts of external and domestic public debt as methods of financing development, with a focus on the Cameroonian economy. Utilizing a dynamic computable general equilibrium (CGE) model and a microsimulation analysis, we find that domestic debt has more advantages for Cameroon compared to external debt, as it increases the large-scale economic impact by improving household welfare, boosting GDP growth, and progressively reducing poverty and inequality. It is therefore recommended that the Cameroonian government focus on increasing the use of domestic debt as a method of financing development by implementing policies that support domestic saving and promote the development of domestic debt markets.

The Nexus of Regional Integration and Household Welfare: A Case Study of the Yangtze Delta Area

Public policies of regional integration have been widely implemented recently in multiple countries as a significant approach to improving regional economic cooperation and reducing economic inequalities. In China, improving household welfare and narrowing welfare gaps become another major purpose of regional integration. Nevertheless, little attention has been paid to household-level impacts of regional integration on improving welfare. This study provides empirical analysis on impacts of regional integration on household welfare by using the case of the Yangtze Delta area from 2010 to 2020. We find that overall impacts of regional integration on improving household welfare and reducing household welfare inequality are significantly positive, and such impacts reveal spatial heterogeneity. Public transport infrastructural integration and city-level migration are two major mechanisms through which such impacts can be amplified. Results remain feasible after a series of robustness tests. We believe that integration should be further implemented to eliminate poverty and boost social welfare in both developed and developing regions in China, and cross-city and interprovincial trade needs to be promoted as an important means of regional integration.

Child well-being in Vietnam: The roles of household welfare and early childbearing

Children are important resources for nations' long-term and sustainable development; therefore, they have the right to have their well-being ensured from birth. Although multidimensional methods for researching child well-being in Vietnam have made some progress, most studies still focus on single aspects of child well-being. This paper analyzes the correlations between household welfare (measured by the asset index - an effective alternative tool to income and expenditure), early childbearing, and child well-being (in six constitutive dimensions) to provide a broad picture of the above relationships in the Vietnamese context. Using secondary data from the Vietnam Sustainable Development Goal Indicators for Children and Women (SDGCW) survey by the General Statistics Office (GSO) of Vietnam and the United Nations International Children's Emergency Fund (UNICEF) in the period 2020–2021, and applying Tobit and OLS regression models, the research results show that a high level of household welfare not only directly increases child well-being but also has an indirect positive effect on this indicator by reducing the early childbearing rate. Based on the research findings, several suggestions are made to improve household welfare; therefore, this paper can support the government in managing early childbearing rates and improving child well-being throughout the country.

Role of Microfinance and Self Help Groups in Rural Women Empowerment – A Study of Two Sub district under Mahisagar District, Gujarat

Being the most important program in the SHG movement in India, NABARD started the pilot phase of SHG Bank Linkage Program in February 1992. This was the first example of a viable SHG financed directly by a commercial bank. Informal saving and borrowing groups of the poor were recognized as bankable customers. Soon after the SHG-bank linkage was in place, RBI advised commercial banks to consider lending to SHGs as part of their rural credit operations. Linking SHGs with the financial sector was good for both sides. Because banks were able to enter the money lending market, borrowers were lower income families, household costs were lower, and repayment rates were higher. By joining SHGs they were able to expand their operations with more credit and they had productive surplus funds for more credit. (Reddy and Maneck, 2005). This research paper attempts to examine the impact of microfinance in the context of poverty alleviation and socio-economic empowerment of women. Help empower women through microfinance by supporting women's economic participation, thus promoting gender equality and improving household welfare. To study the role of microfinance and self-help groups (SHGs) in women empowerment, Santrampur and Virpur sub district of Mahisagar district have been selected, for the present study a total of 20 SHG organizations have been selected from these two sub district and Out of these 20 SHGs, 150 respondents have been selected for the research. has been selected to start the job. Here tabular analysis has been used to analyze the data collected from local survey reports.

Evaluating the impact of improved crop varieties in the Sahelian farming systems of Niger

Most people in Niger still rely heavily on agriculture as a source of income. However, low productivity, climate change, soil infertility, pests, and diseases are challenges faced by this sector. As a result, the nation suffers from a severe problem of food insecurity. Many investigations indicate that adopting improved crop varieties(ICVs) increases agricultural productivity. Using information gathered from 1784 farmers, this study assesses the effects of adopting improved crop varieties (ICVs) on household welfare. To analyze the data, we employ endogenous switching regression (ESR) and inverse probability-weighted regression adjustment (IPWRA) techniques. The analysis shows that the ICVs adoption significantly improves household income and food access in Niger's Sahelian region. The ESR model's average treatment effects estimate shows that the ICVs adoption raised per capita income, food expenditure, and household dietary diversity score (HDDS) by 75 %, 1.81 %, and 36.49 %, respectively. The IPWRA model yields similar results.Therefore we conclude that adopting ICVs has substantial dynamic benefits that improve household welfare in Sahel Niger by increasing their probability of escaping poverty, food insecurity, and malnutrition. The farmer's knowledge of improved crop varieties significantly influenced favorably the decision to adopt, suggesting that intensifying dissemination and encouraging the promotion of drought-tolerant crop varieties among farmers, development agencies, researchers, and policymakers could be a crucial plan of action to combat poverty, food insecurity, and malnutrition in the Sahelian region.

Heterogeneous impacts of greenhouse farming technology as climate-smart agriculture on household welfare in Ghana

The contributions of climate-smart agriculture to the transformation of agri-food systems as well as reducing the vulnerability of smallholder agriculture production to climate change in sub-Saharan Africa have been acknowledged in the sustainable development literature. However, studies on the impacts of adoption of climate-smart agriculture (CSA) have not thoroughly explored the impact of greenhouse technology (GHT) adoption as a CSA practice on household welfare. This study attempts to fill-in this knowledge gap by analysing the drivers of GHT adoption as well as the heterogeneous impacts of GHT adoption as CSA practice on household welfare using the marginal treatments effect (MTE) model and a unique data on greenhouse and conventional farmers from southern Ghana. The findings from the study indicate that GHT adoption as a CSA practice assisted smallholder vegetable farmers to improve their crop yields, net farm returns and per capita consumption expenditures by 21%, 15% and 13%, respectively. Further evidence from policy relevant treatment effects (PRTE) of the MTE model suggests that having access to market and climate information tend to boost GHT adoption, which consequently improve household welfare. Hence, development agencies and practitioners should make conscious efforts to accelerate the promotion of GHT as a sustainable agricultural technology that could minimize the negative effects of climate change.

The Contribution of Women Traders in Increasing Household Economic Income in Saumlaki South Tanimbar Sub-District

This research aims to explore the contribution of women traders in increasing household economic income in Saumlaki, South Tanimbar Sub-district. Saumlaki, as part of the Tanimbar Islands, faces complex economic challenges, especially among households. Women traders in this region have an important role in creating economic opportunities and overcoming economic difficulties in their neighborhoods. This research aims to understand the extent to which women traders contribute to increasing household economic income. This involves analyzing their role in creating employment, increasing access to economic resources, and influencing the economic development of the community. This research used a qualitative approach with in-depth interviews and observation as data collection methods. Data was analyzed through a process of coding and emerging themes to understand the impact of women traders on the household economy. The results showed that women traders have a significant role in increasing household economic income in Saumlaki. They are able to create economic opportunities, expand networks, and make a meaningful contribution to the economic development of the community. This research confirms that women traders have an important role in increasing household economic income in Saumlaki, South Tanimbar Sub-district. In this context, supporting efforts that strengthen their role in local economic development could be a relevant and strategic step in fighting poverty and improving household welfare in this region.

Factors that Influence the Farming Business of Cocoa Farmers (Theobroma Cacao L) in Negeri Sepa, Amahei District, Central Maluku Regency

Plantations in Indonesia are dominated by smallholder plantations. This is a challenge as well as an opportunity for investors and farmers to develop their businesses and achieve greater added value from cocoa agribusiness. Negeri Sepa is located in a coastal area with the scope of village communities who mostly have a livelihood as farmers. Workers working in agriculture earn income that is used to make ends meet and improve household welfare. This study aims to determine the physical and non-physical factors of cocoa in Sepa Country, Amahai District, Central Maluku Regency. The method used in this study is quantitative descriptive to explain the Factors That Affect Cocoa Farmer Farming in Sepa Country. Data analysis in this study used a Frequency Table. The results of frequency tabulation show that the factors that affect cocoa farming in Sepa Country, Amahai District, Central Maluku Regency are Physical Factors (Climate, Soil & Topography) and Non-Physical Factors (Cocoa Farm Management, Capital, Number of Workers, Transportation, Marketing, Credit Facilities and Technology)

The importance of having a more realistic welfare transfer determination rule: A CGE analysis for Ireland

While unemployment benefits constitute a significant share of welfare transfers in developed countries, the computable general equilibrium (CGE) literature ignores the impact of unemployment rate changes on these transfers. This paper investigates the impacts of alternative welfare transfer determination rules by using a dynamic CGE model for Ireland. We find that indexing the nominal welfare transfer budget to the consumer price index (CPI) and the aggregate unemployment rate is superior to the CPI alone. Although both specifications generate similar macroeconomic outcomes, our novel specification improves household welfare as well as income distribution across households. We argue that it is more in line with the behaviour of governments and that the literature ignores the progressivity elements embedded in the welfare system, which will reduce the welfare cost of carbon taxation. The results can be generalised in analysing the impacts of tax reform in countries where unemployment benefits are essential elements of welfare transfers.

Social Characteristics of Squid Fishermen Conditions in Improving Household Welfare and Income, Lampung

The level of income determines the welfare of fishermen. The aim of this study was to determine the relationship between the income level of squid fishermen and household incomse with the condition of squid fishermen. This study was conducted in Sukajaya Lempasing Village, Teluk Pandan District, Pesawaran Regency, Lampung. The results of the study showed that squid fisherman households with income above the minimum wage (prosperous) value have side jobs that can increase their income to meet the daily needs. The welfare level of squid fishermen is in the poor to moderate category. Education is a human right for every Indonesian citizen, thus every citizen has the right to get a proper education. Education is an important indicator in measuring household welfare. The difference in the education level will certainly affect the level of welfare obtained by each household. Most of the squid fishermen are in a prosperous condition because they have high scores on every welfare indicator, especially on education indicators, consumption levels and patterns as well as housing and environmental indicators.

Impact of financial inclusion on household welfare in Liberia: A gendered perspective

AbstractFinancial inclusion (FI) is critical to achieving the Sustainable Development Goals, particularly zero poverty, gender equality, and reduced inequalities, but there is limited evidence of its impacts on household welfare in fragile and post‐conflict countries (FPCCs). This study analyses the impact of FI on household welfare in Liberia using the Liberian Household Income and Expenditure Survey of 2016–2017. For the empirical analysis, we use an inverse probability‐weighted regression adjustment model and separate analyses for male‐headed households (MHHs) and female‐headed households (FHHs) to identify possible gender differences. We find that using mobile money statistically significantly increases household food security for MHHs and FHHs. In particular, the welfare impact is greater for MHHs in terms of food availability, while in relation to food quality and dietary diversity, the impact is greater for FHHs. These findings show the need to scale up FI in FPCCs as a catalyst for improving household welfare.

Pelatihan Kerajinan Ibu-Ibu PKK dari Limbah Bekas Kemasan Pabrik Kopi Pada PT. Santos Jaya Abadi Menjadi Sebuah Produk Tas dan Tempat Tisu

Women's empowerment is one indication of rising welfare. When women become educated, have property rights, and have the freedom to work outside and earn an independent income, this is a sign of improved household welfare. One of the steps in empowering women in Indonesia is done through PKK activities. Empowering PKK mothers as members of the community and who are also classified as productive labour is vital. The purpose of this empowerment is to develop awareness and independence in business, as well as to expand employment opportunities and increase the knowledge of mothers in Panjunan Village. This alternative was chosen because PKK women in the Panjunan area really need knowledge and skills that can be used as provisions and hone the skills of each individual. This training is expected to complement the knowledge and skills of PKK women in various aspects, and can provide benefits in showing their existence in skills, while equipping themselves to do business which in turn can encourage increased income in the family.

Microfinance Impact on Household Poverty Levels

Purpose: The aim of the study was to investigate Microfinance Impact on Household Poverty Levels
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The study's findings highlighted that microfinance has a mixed impact on household poverty levels. While treated households experienced increased income, consumption, and investment, overall poverty reduction remained modest. Notably, the positive effects were more pronounced for households with pre-existing entrepreneurial skills. The relationship between microfinance and women's empowerment was complex, as these programs had varying impacts on income generation and decision-making among women. Furthermore, group-based microcredit programs led to improved household welfare for both genders, with females experiencing more significant poverty reductions.
 Unique Contribution to Theory, Practice and Policy: Financial Inclusion Theory and Social Capital Theory may be used to anchor future studies on Microfinance impact on household poverty levels. Offer financial literacy training and business development support to borrowers. Enforce policies that protect borrowers from predatory lending practices, ensuring transparency in loan terms and preventing coercive debt collection tactics

LAND REALLOCATION FOR AN UPGRADED URBAN DEVELOPMENT PLAN IN RWANDA: A CASE STUDY OF PLANNING FOR UPGRADING KABUYE PHASE II SITE/GASABO DISTRICT, KIGALI CITY

Land is required for development of basic public infrastructure. Compensation for current rights holders of such land must be negotiated. Also, the resulting subdivisions will thus be smaller than the original portions of land, and the parcellation exercise will mean that households do not hold the same portion of land they held originally. All of these aspects can lead to conflicts over land if not properly managed. Kigali City Master plan 2050 has its main objective of making a smart city particularly Kabuye Phase II site is rising growth trajectory requires rapidly expanding infrastructure facilities to support it with making detailed Physical planning as a key component of urban development initiatives and sets the boundaries that will help to have Access to affordable infrastructure services for consumption purposes serves to improve household welfare through resident initiative. The detailed topographic survey of the area was undertaken. Secondary data was obtained from the District level and other stakeholders. The Kigali City master plan provides useful information while the Google Earth Pro platform proved beneficial. Existing parcels were 2125 Parcels with informal planning having area of 156ha. The new plot and different land use have proposed as Residential with 1902 new plots, off-core commercial, Road, Pathway and 1252 Parcels have remained as Existing one but arranged referring to the planning and total cost of priorities activities within the site is 1,430,661,116Frw. Each plot will be contribute land at 23.84% and financial contribution in order to finalize this project will be 632,924frw by new one plot to be developed and 181,182frw/previously permitted and previously constructed plot. However, there are still some serious concerns evident in the newly readjusted area. These should be viewed as recommendations to be taken into account by future project implementers and partners, particularly the local government units overseeing the project sites. The most important emerging issues are the growing income disparity with the exclusion of the poorest from the development process.

Improving Household Welfare Through Income Diversity

Accepting income diversity by households is regarded as a crucial step in breaking the vicious cycle of poverty. The study aims to investigate the empirical relationship between household welfare and income diversity. We examine the effects of potential endogeneity brought on by selection bias using instrumental variable static panel model regression. The Uganda National Panel Survey waves were used in the study. The results demonstrate that having a variety of sources of income significantly improves household welfare. The findings further revealed that household welfare is significantly predicted by the household head's education while living in the eastern or northern regions has a negative effect on welfare relative to living in the central region. The methods employed in this research were unable to adequately describe the subjective nature of welfare. Future studies may consider taking a pragmatic approach. The utilization of both primary and secondary data for further research may reveal amazing results. In contrast to past research that only used expenditure as a proxy for welfare, the research study advances the literature on welfare by demonstrating the impact of income diversity on household welfare as measured by poverty status and consumption expenditure. The study extends the welfare theory by showing how diversity of income enhances household welfare using a sample of households in Uganda, a developing economy.

Welfare impact of improved maize varieties adoption among smallholder farmers in Amuru district of Horo Guduru Wollega, Ethiopia

Government policy strategies, particularly in sub-Saharan Africa (SSA), are aimed at increasing agricultural productivity, which could contribute to improve household welfare. Hence, understanding smallholder farmers’ low and variable crop yields has been a central research and policy priority in addressing food security. Likewise, the purpose of this study was to assess the impact of adopting improved maize varieties on productivity and food insecurity in Amuru district of Horo Guduru Wollega, Ethiopia. The study utilized cross-sectional household data collected in 2020/2021 from 263 randomly selected sample households. The probit model’s findings indicate that factors that positively influenced households’ adoption of the improved maize varieties included the household head’s education level, the amount of livestock owned, access to credit, access to training, farm size, access to extension agents, and access to information from farmers associations, while factors that negatively influenced adoption included family size and market distance. The endogenous treatment effect model’s findings also showed that IMV adoptions considerably improve smallholder farmers’ welfare by lowering food insecurity and raising their average calorie intake and net crop values. Thus, it is advised that governments and other interested institutions should promote the adoption of improved maize varieties on a larger scale in order to boost maize yield and lower rural household food insecurity.

Exploring The Nexus Between Crop Diversification

Following the effects of climate change, there has been a resurgence of interest in promoting crop diversification as a climate-smart agricultural practice in Sub-Saharan Africa to improve food security, increase income, and reduce vulnerability to external shocks. This practice is considered an effective risk management strategy and consumption smoothing strategy in a context characterized by repeated exposure to shocks. Agricultural production in Kenya is mainly dependent on rain-fed cultivation, with maize as the principal staple food crop. However, staple crops face major challenges and therefore, a diversification from over-reliance on staples will be important as part of progress toward achieving food security. The Kenyan government has, for a long time, been promoting crop diversification to improve household welfare and minimize risks associated with heavy dependence on maize. A decline in maize yields associated with the emergence of new pests and diseases, such as maize lethal necrosis disease (MLND) in Borabu sub-county, emphasized the need for maize farmers to diversify away from maize production. Although this strategy is in use, there is no clear evidence of the impact it has on the livelihoods of vulnerable households. Thus, the study sought to find out the nexus between crop diversification and household welfare among small-scale farming households in Borabu sub-county. Multi-stage sampling procedure was used to select a representative sample size of 385 small-scale farmers. Primary data was collected using observations and interviews with the help of a semi-structured questionnaire. The data were analyzed using the STATA computer program. This paper adopted the Endogenous Switching Regression Model to determine the nexus between crop diversification and household welfare, with household welfare being proxied by household financial savings. The findings indicate that smallholder maize farmers who practiced crop diversification experienced an enhanced ability to save than a random individual would have experienced. Keywords: Crop diversification, household welfare, Maize Lethal Necrosis Disease, Endogenous Switching Regression Model. DOI: 10.7176/JBAH/13-8-07 Publication date: May 31 st 2023