Credit Support Research Articles

Dairy industry of Ukraine in martial law

Introduction. At present, the dairy industry of Ukraine needs to solve extremely difficult tasks, the main of which is related to the need to ensure food security of the country in the extremely difficult conditions of hostilities on the territory of the state. Problem. The dairy industry of Ukraine with the beginning of the war and the temporary occupation of the territory suffered significant losses caused by the loss of part of production capacity, the impact of inflationary processes, disruption of logistics chains. The aim of the article is to determine the current state and prospects of development of the dairy industry of Ukraine. Methods. To achieve this goal, the following methods were used: analysis of scientific publications and statistics, analysis of the market situation and generalization of the results. Results. The problems of the domestic dairy industry that need to be solved are outlined, in particular, the need to develop the raw material base; introduction of new technologies that will allow in the martial law not to reduce the level of production efficiency; correction of marketing policy; support of the export potential of the industry and its financial and credit support. Recommendations for solving these problems and the development of the industry in today’s extremely difficult conditions are given. Conclusions. It is established that the domestic dairy industry, even in conditions of war, is able to actively develop, ensuring food security of the state.

Credit Cooperative Lending Loans as Challenges and Opportunities for Women Entrepreneurship in Africa: Evidence from Ghana

ABSTRACT This study examined how credit cooperative loans affect women entrepreneurship. Semi-structured interviews were conducted with 14 women entrepreneurs from three Cooperative Lending groups in the Ashaiman Municipality of Ghana. We found that credit cooperative lending groups support and promote women entrepreneurship by providing their members with access to long-term interest-free credit support to start or expand their businesses. We also found that by providing their members with training and capacity-building opportunities to improve their skills for sustainable businesses and their income to pay back their loans, credit cooperative lending groups significantly contribute to women entrepreneurship. The contribution of this study is that it sheds light on how credit cooperative loans help to alleviate the difficulties that women entrepreneurs of the informal sector in Developing Countries face to have access to financial resources.

Exploring the impact of energy factor prices and environmental regulation on China's green innovation efficiency.

This study adopts super-DEA model to measure the current level of green innovation efficiency in Chinese provinces. At the same time, Tobit model is used to analyze the impact of energy factor prices and environmental regulation on its efficiency, the results are as follows: (1) Chinese green innovation efficiency average is 0.545, which is at a low level, but shows a steady upward trend. The results have shown that large differences exist in different provinces. Average value of efficiency is highest in the eastern and lowest in the western, and low green innovation efficiency is focus on main provinces of producing coal-based mineral resources. (2) The price change of energy factors inhibits the national green innovation efficiency. The impact on the eastern part of China is positive, but did not pass the significance test, and in central region is negative and also did not pass test, but in the western, it inhibits green innovation efficiency significantly. Environmental regulation has a negative effect on the national green innovation efficiency, the impact coefficient of east is positive, and also positive in the central part, but it fails to pass significance test, while in the west is negative. It can be seen that there are significant regional differences in the impact of the two on the efficiency of green innovation. This paper proposes that we can pay attention to the promotion of environmental regulation, encourages enterprises to actively carry out green innovation activities, continues to deepen the market-oriented reform of energy prices, and increases credit support and introduce financial resources for corporate R&D activities to explore policies to improve the efficiency of regional green innovation.

COMPARATIVE ASSESSMENT OF MACROECONOMIC INDICATORS GROWTH PERFORMANCE BETWEEN INDIA AND NIGERIA

India and Nigeria were colonized by the British empire, got their independence within a given time range, and are among the largest growing economies among developing nations; they were ranked 1st and 3rd most populous among the common wealth countries respectively and both the countries houses significant population of malnourished, poor and food insecure people. The paper comparatively assessed the macroeconomic growth performance between the two countries using time series data that spanned from 1990-2020. Compound growth rate model was fitted to the data to confirm the trend of acceleration, deceleration or stagnation during the period. The results of the study revealed that mean values of GDP and GNI in US dollars at constant prices for India were higher than that of Nigeria by almost 7 times, while Nigeria`s per capita GDP was higher than that of India under the reference period. With respect to the GDP and per capita GDP growth rates, India recorded lower growth but more stable than Nigeria. Further, both the countries recorded highest GDP contributions from Service sector (46 per cent in India and 35 per cent in Nigeria). But the growth rate shows stability in Indian Service sector in contrast to the highest instability in agricultural sector. In Nigeria, on the other hand, agricultural sector got the highest growth contribution to GDP growth-though stagnant and instable, while service sector’s growth contribution to GDP growth was the lowest among other variables. It is recommended that increase budget share to agriculture through proper funding of research, credit support and extension service would help to repositioned agriculture back to its higher (of about 50 per cent) GDP contribution and compete vigorously with other economic sectors in income generation, employment opportunities and poverty reduction in both India and Nigeria.

Measures of state support for the hotel industry in the context of a pandemic and Anti-Russian sanctions

The presented work systematically analyzed the currently implemented measures of state support for organizations of the hotel industry, aimed at neutralizing the negative consequences of the pandemic and the introduction of anti-russian sanctions by a number of foreign states. Special attention is paid to the peculiarities and problems of the implementation of measures of tax, financial, credit, budget and industry support of the hotel industry, assessment of their effectiveness and significance for economic entities. Conclusions are being drawn about improving the set of measures of state support for the industry in order to increase their targeting, effectiveness and focus on pre-overcoming the negative consequences of the pandemic and sanctions pressure.

Influence of scheduled bank credit on India’s agriculture food grain production & its economic growth

A country’s economic growth depends on agriculture production. The population of India relies mainly on agriculture for their living. Though agriculture's capability to support GDP is below 20% in recent years while comparing other sectors that contributed less to GDP at initial days is now contributing at a faster face to India's GDP. (K. C. Badatya, 2020) But generally, agriculture production has grown enormously, which shifts from being dependent on food from other countries to exporters of food to other countries. According to official data, our country has produced food grain of 296 million tons (MT) in 2019-20. The estimation of ICAR (Indian Council for agricultural research predicts the demand would move to 345 (MT) by 2030. (World Bank, , 2012) This huge demand is due to the growing population, growth in income and globalization. India can meet the need as it has 15 Agri climate zones, the largest producer of milk, tea, cashews and the second-largest producer of fruits, rice, wheat, cotton. Despite this agriculture, credit support is vital for developing agricultural production.

Research on the Impact of Credit Support on the Income Increase of Family Farms in China: Based on Hunan Province

Family farms are an important part of rural revitalization in China. Strengthening credit support for family farms is of great significance for increasing family farm income. This paper takes 1895 demonstrative family farms in Hunan Province as an example and proposes research hypotheses based on the theoretical analysis of the income growth effect of family farm credit. Based on the Cobb–Douglas theory, the Tobit model is used to make an empirical analysis of the income-increasing effect of family farms. And, we can add explanatory variables and QTE quantile effect model for testing. The results show that strengthening family farm credit support is conducive to increasing family farm income, and the coef. is 0.428. Family farm credit support is positively correlated with its total operating income. The more credit support for a family farm receives, the higher its total operating income. When the credit support of a family farm reaches a certain scale of 300,000 RMB, its income-increasing effect begins to diminish gradually.

Providing Export Credit Support Right: Consequences for Public Budgets

This analysis tries to address the problem of the insufficiency of premium rates used by export credit agencies. This paper aims to answer why and how states should run agencies that may create losses. We see that each supported exporter brings some other benefits to the public budget, and we try to propose how it could be measured. This paper therefore focuses on benefits and costs of the domestic economy. This analysis aims to develop a model that calculates the impacts of each supported export project. The results must be comparable between projects so that projects can be ranked and decisions made on which ones should receive support under current capacity restraints. The current state of knowledge has been analysed, and little attention has been paid to this microeconomic area of export support. The model structure also helps us understand why governments tend to maintain export credit agencies even though they may be temporarily loss-making.

Non-financial indicators for credit risk analysis of Chinese technology-oriented micro and small enterprises

Technology-oriented micro and small enterprises (TMSEs) play an important role in technology innovation, employment increase, and economic growth. Due to their high risk and resource consuming nature, the Chinese government has set up special funding, and encouraged banks to provide credit support for TMSEs. However, traditional enterprises’ credit evaluation methods are not suitable for TMSEs due to their characteristics. How to assess the credit risk of TMSEs is a relatively new and challenging topic. This study is to identify novel indicators that can capture the creditrelated characteristics of TMSEs. Specifically, we proposed that innovation capability and business models can be used to identify some special aspects of TMSEs’ credit risk. To validate the new indicators, we compared the performance of traditional financial indicators and the new indicators. The results showed that innovation and business model indicators can effectively improve the performance of classifiers in the credit risk assessment of TMSEs.

FINANCIAL MECHANISMS OF INFLUENCE ON THE DEVELOPMENT OF ENTERPRISES OF THE AGRICULTURAL SECTOR OF THE ECONOMY

The article deals with the impact of financial mechanisms on the development of enterprises in the agricultural sector of the economy, formed on the basis of economic and financial policies of the state, the effectiveness of which can have a positive impact on the efficiency of individual enterprises and overall the development of agriculture. The author’s vision of the possibility of financial mechanisms for the development of agricultural enterprises is substantiated, it is described the influence of effective financial mechanisms that most contribute to financial security and regulation as the basis for increasing the financial potential of agricultural enterprises (state financial support mechanism, bank lending mechanism and insurance protection mechanism). Conclusions are made that the multiplicity of the relationship between the individual components of financial mechanisms, in its next reflection of the specifics of financial security and financial regulation of processes in agro-industrial production, determines the nature of interaction between the enterprise and the external environment and manages the finances of the agricultural sector. The problems of the existing financial mechanisms and external and internal factors of their influence on the efficiency of development of agricultural enterprises are highlighted. The directions of improvement of financial maintenance of limited accesses of the enterprises of agrarian sector through the use of non-traditional mechanisms of crediting and development of an infrastructure of guarantee funds as establishments of credit support of agrarian sector are offered. The complex combination of various financial mechanisms with appropriate tools and effective levers influencing the development of enterprises in the agricultural sector of Ukraine creates conditions for stable and efficient agribusiness in an effective competitive environment,including the interests of enterprises and the state.

Willingness to pay for adopting conservation tillage technologies in wheat cultivation: policy options for small-scale farmers

Traditional farming involves intensive tillage causing soil degradation and erosion. On the contrary, conservation tillage technologies are expensive to purchase for small-scale farmers. However, the adoption of these technologies reduces soil tillage costs which lead to reduced overall production costs. In this milieu, this study assessed the willingness to pay (WTP) for adopting conservation tillage technologies in terms of individual and cooperative payment systems using the primary data collected from 320 wheat farmers in Bangladesh. The contingency valuation method (CVM) was followed to estimate their WTP, and factors affecting WTP were identified through the logistic regression model. The results elicited farmers perceived that conservation tillage technologies would facilitate by reducing costs, timely land preparation, seed sowing and planting, appropriate positioning of seed and fertilizers, and higher soil moisture. Nevertheless, most of the farmers wanted to adopt conservation tillage technologies, while about 79% would like to pay for it. Although farmers' average WTP for individual purchases was higher, most were interested in the cooperative systems for adopting conservation tillage machines. Farmers' WTP for both individual and cooperative purchases was influenced by location of wheat production, farming experience, and demonstration plots. Additionally, individual payment system was affected by the amount of wheatland and training while credit affected the cooperative purchase system. Besides, the farmers would like to expand their wheat farms by approximately 73.33% after adopting conservation tillage technologies. The refusal to pay for conservation tillage technologies was mostly due to low-quality spare parts, lack of technical understanding, and unawareness of the technology. This study suggests that providing training among farmers and operators, credit support, and making machines and spare parts available in the nearest markets would support adopting conservation technologies. Besides, cooperative-based payment system should be formed to help small-scale farmers adopt conservation tillage techniques for sustainable agriculture in an environment-friendly way.

Effect of Access to Microfinance Support on Growth of Women Agro-Processing Enterprises in the Northern Region of Ghana

Microfinance institutions (MFIs) have been very instrumental in the provision of financial support to women agro-processors in the northern region of Ghana. However, the effect of microfinance support on the growth of small-scale women agro-processing enterprises in the study area has received little empirical investigation. This paper presents the findings of a study that assessed the effect of access to microfinance support on the growth of women agro-processing enterprises in the Northern Region of Ghana. A cross-sectional survey design was adopted to gather data on 402 women agro-processors in two districts of the Northern Region of Ghana. Descriptive and inferential statistics were employed in analysing the data . The study revealed that, access to microfinance support enabled women agro-processors to acquire credit and business development training which enabled them to improve the quality of their processed products which attracts higher prices. Hence the growth of women agro-processing enterprises through increased incomes, savings, and investments. The study also found a significant difference in the growth of enterprises of agro-processors who accessed microfinance support fully, and partially, and those who did not access microfinance support at all. It is therefore recommended that microfinance institutions should intensify training on the use of improved methods of processing, use of improved equipment and increase amounts of credit support given to women agro-processors to enable them increase productivity and growth of their agro-processing enterprises. Â

Women Empowerment Through Microcredit:

For the time being, efforts are continued by the different organizations of Bangladesh to empower rural women who were so vulnerable in their premises that no money-lending organization trusted them. For last few decades, microcredit- a collateral free credit support, has been disbursed for the betterment of women and their empowerment. This study investigates the contribution of microcredit in empowering rural women and how the credit beneficiaries are facilitated by nourishing it. The perceptions of female borrowers are also assessed here. Following the mixed method, 42 female credit borrowers of two root level units equally from Bangladesh Rural Development Board (BRDB) and Bangladesh Rural Advancement Committee (BRAC) are selected for the collection of firsthand data while different credible secondary sources are searched for extra information. The study contributes to formulate public and private policy from the updated findings of empowerment and self dependency of women by dint of existing system of microcredit program. The result explores that the female borrowers are capable of increasing their income and savings that entails declining domestic violence. Few of them achieved the ability to participate in different decision making activities of their personal and family affairs. In addition, microcredit helps to improve personal skills, social status, political consciousness and legal awareness of the credit beneficiaries that really strengthen their morale. Finally, the study finds that the women perceive more empowered after the inflow of microcredit in their everyday activities. Therefore, some pragmatic recommendations based on the findings are proposed for better women empowerment of rural area.

THE IMPORTANCE OF SMEs AND THE EFFECTS OF COVID-19 PANDEMIC OVER SMEs STATISTICS

It is described as “SME” economic units or enterprises that employed less than 250 people and net revenue or balance sheet less than 220 billion TL. In this study, it is considered SMEs’ importance in Turkish economy with the data annually between 2009 and 2021 by tables and graphs and by comparing larger companies’ data and mentioned the effects of Covid-19 Pandemic to SME statistics. According to the data of 2020, there are 3.295.995 SMEs in Turkey and it means that 99.76 % of all firms operate in Turkey is SME. In 2009, SMEs produced the 44.67 % of all production with 76 % of all workers in Turkey; in 2020, they produced the 42.75 % of all production with 72 % employment. Despite of that, SME Loan is 23 % of all cash credits. This credit rate increased only to 23, 73 % in 2020 by some credit support under government supports because of Covid-19 Pandemic. While SMEs created 44 % of all added-value in 2019, this rate decreased to 41 % in 2020 because of Covid-19 Pandemic. In the same way, it is seen that the added value per employee decreased from 23 % to 21 %. Shortly, even though SMEs are influenced negatively from the Covid-19 Pandemic, they are still engine of production and so economy of Turkey as before.

Policy incentives, ownership effects, and firm productivity—Evidence from China’s Agricultural Leading Firms Program

This study explores the impact of the Agricultural Leading Firms Program (ALFP) on the productivity of China’s agro-processing firms utilizing firm-level data from 1998–2013. The propensity score matching difference-in-differences method is used to control for endogeneity. We find that ALFP’s implementation promotes the productivity of agro-processing firms. However, this productivity enhancement occurs only in non-state-owned enterprises (non-SOEs); the productivity of SOEs is not affected. Regarding the underlying mechanisms, studies indicate that ALFP’s policy incentives for SOEs are mainly in the form of credit support and for non-SOEs as tax incentives and subsidies. Moreover, although policy incentives promote research and development expenditures by both SOEs and non-SOEs, credit support cannot alleviate the overinvestment of SOEs, while tax incentives and subsidies actually improve the investment efficiency of non-SOEs; this may cause the heterogeneous effects by ownership.

Will environmental information disclosure affect bank credit decisions and corporate debt financing costs? Evidence from China's heavily polluting industries.

In the context of green finance, whether listed companies in heavily polluting industries can convert the external pressure of environmental information disclosure into internal motivation is critical to achieving environmental governance goals. This paper selects 946 listed companies of 16 heavily polluting industries in the Shanghai and Shenzhen stock markets as samples to explore whether environmental information disclosure can help companies increase bank credit support and reduce debt financing costs to transform their external pressures into internal motivation. The empirical results show that there is a significant positive correlation between environmental information disclosure and bank credit decisions. From the perspective of financing scale, heavily polluting companies have the inherent motivation to disclose environmental information actively and proactively to obtain more credit support. There is no significant relationship between the corporate debt financing cost and environmental information disclosure. This paper puts forward some critical policy suggestions for government decision makers, heavily polluting enterprises, and financial institutions.

Determining Factors Affecting Cooperative Membership of the Beekeepers Using Decision Tree Algorithms

Agricultural cooperatives have important contributions to farmers. Thanks to cooperatives, agricultural products are sold at high prices, while agricultural inputs can be purchased at low prices. Cooperatives provide their partners with technical support in product processing, grading, standardization, storage and quality. On the other hand, cooperatives contribute to the sustainability of agricultural activities by providing credit support to their members. The current research was carried out Milas district of Muğla province, which is the center of pine honey production in Turkey. In the current research, a survey was conducted face to face with 62 farmers engaged in beekeeping, and the decision tree model, which is one of the data mining methods, was used in determining the factors that affect the beekeepers' membership in cooperatives. As a result of the statistical analyses conducted, it was concluded that on the cooperative membership of beekeepers, their status of using credit, education level and status of receiving beekeeping supports have a highly significant influence.

Household food insecurity and dietary diversity of women of reproductive age among smallholder farming households in northwest Bangladesh

ABSTRACT Despite Bangladesh’s remarkable progress in agricultural production over the past few decades, household food and nutrition insecurity persist, especially in rural areas. The nutrition security and dietary diversity are even more critical for women of reproductive age among smallholders. This study examined household food insecurity and dietary diversity of women of reproductive age in the rural areas of northwest Bangladesh. Using cross-sectional data collected from 252 smallholder households, we measured household food insecurity and dietary diversity of women of reproductive age by the Household Food Insecurity Access Scale and the Minimum Dietary Diversity for Women, respectively. Determinants of household food insecurity were examined, and associations between household food insecurity and low dietary diversity were determined. The majority of the households were mildly insecure (51.2%) followed by moderately insecure (27.4%). The households felt anxiety of food insecurity for more than six months a year (Food Security Index = 2.10 out of 4.00). The mean food group consumed by women was 4.63 indicating low dietary diversity and dominance of diets by grains and dark green leafy vegetables. The findings also indicate a significant and positive association between household food insecurity and low dietary diversity of women. Education of household heads, household size, access to information sources, access to credit support, and perceived impacts of climate change on crop production were identified as determinants of household food insecurity. The study recommends that appropriate interventions be formulated to improve the food and nutrition security in the study areas.

Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic

The research article analyzes the features of public support for small and medium businesses (SMEs) in the leading countries of the Asian world model of innovative development (South Korea and Singapore). A comparative analysis of anti-crisis government programs of SMEs financing in conditions of COVID-19 is presented. The key directions of using the experience of South Korea and Singapore for the development of a system of state financial and credit support for SMEs in Russia and overcoming the consequences of the coronavirus crisis are proposed. To reduce the financial burden on the federal budget, it is urgent for Russia to switch from SME state support to a system of public-private financial and credit support model. This goal can be achieved by developing an enabling environment for innovation of SMEs and large businesses and incentives to accelerate commercialization and promote Research and Development to the Global innovation market. The study and adaptation to the conditions of Russia of the best practice of the leading countries of the Asian model of innovative economic development in the expansion of effective and targeted state programs of credit guarantees and subsidies for SMEs, forms of tax incentives for national large private companies and foreign investors would contribute to employment growth and increase the contribution of SMEs to Gross domestic product. The advanced experience of South Korea and Singapore can be useful in organizing forms of online business and developing targeted employment support programs in sectors of the economy affected by the COVID-19.

Локалізація глобальних механізмів залучення кредитних та інвестиційних ресурсів для зміцнення фінансової спроможності територіальних громад України

The purpose of the article is to deepen and develop the scientific foundations of localization of global mechanisms for attracting credit and investment resources in the context of strengthening the financial solvency of territorial communities of Ukraine in the postwar period. The article defines the essence and importance of the financial solvency of territorial communities in ensuring the postwar reconstruction of Ukraine; the best practice of localization of global mechanisms for attracting credit and investment resources to the level of territorial communities / municipalities is revealed; the directions of strengthening the financial solvency of territorial communities of Ukraine in the period of postwar reconstruction through a combination of global and local mechanisms for attracting credit and investment resources are substantiated. A structural analysis of local budget expenditures according to the economic classification was carried out in order to identify tendencies in changes in the dynamics of capital expenditures for the period 2014-2021. It is emphasized that in the current conditions it is necessary to look for alternative sources of revenues for the implementation of relevant expenditures of local budgets, since their volumes and directions of expenditure have changed dramatically. Based on the analysis of foreign experience in financing capital expenditures of local government budgets, it is proved that in the context of global growth of public debt in all countries over the world, investment instruments look to be the most attractive, from the standpoint of attracting resources for capital expenditures. The main macroeconomic and legislative risks that threaten the investment climate of Ukraine, apart from military aggression by the russian federation, have been identified. The possibility of attracting investments through the system of international financial organizations and development banks both at the local and regional levels in order to finance the restoration of infrastructure of territorial communities of Ukraine is proved. Proposals as to a synergistic combination of global and local approaches to financing the postwar restoration of territorial communities are substantiated. Due to the projected deficit of local budgets in the postwar years, communities need to start using mechanisms for using new financial instruments of the international market – social, climate, green bonds, impact bonds, and hybrid financial instruments. It is proved that the key element of the financial recovery program should be the newly created after the end of the war Ukrainian Bank for Reconstruction and Development (UBRD). Prospect for further research in this direction is to identify the optimal capital structure of local development institutions and analyze the priority directions of investment in the sphere of financial and credit support for the postwar reconstruction of territorial communities in Ukraine.