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This study aims to analyze the financial inclusion of individuals living in the Middle East, North African, Afghanistan and Pakistan (MENAP). It intends to show the influence of these individuals’ characteristics on financial inclusion, using the World Bank Global Findex Database 2014 for 16 countries in the region.

A probit model is used to examine the marginal effect of financial inclusion of the characteristics of individuals living in the MENAP region. These characteristics include gender, age, income and education. Individual characteristics that are linked to the main financial-inclusion indicators include having a formal account and formal saving and borrowing. The barriers to having a formal account, alternative borrowing sources and motivations for borrowing are also linked to the respondents’ characteristics.

The results indicate that females and the poor are less likely to be included in financial systems, while education level enhances financial inclusion. As disadvantaged people consider access to credit is important to improving their lives, the study finds that the poor are more likely to borrow for medical issues than for other needs. While Islam is the majority religion in the MENAP region, it is not considered a barrier to having a formal bank account. Furthermore, people in different income quintiles are more likely to use informal financial sources, while the educated are more likely to use formal ones.

The results show that policymakers in MENAP should make more of an effort to enhance financial inclusion as a way to enhance economic development in the region. Also, governments institutions, such as central banks, financial ministries and other institutions, could build on these results to enhance financial inclusion as a way toward development in the MENAP region.

To the author’s best knowledge, this is the first study to examine the influence of individuals’ characteristics on financial inclusion in the MENAP region.

The purpose of this paper is to examine how shocks suffered by rural households in Ethiopia influence their decision to borrow and the source of credit.

First, suppose a household faces a set of four borrowing alternatives: only formal borrowing, only informal borrowing, both formal and informal borrowing, and non-borrowing. Second, the paper assumes that the random component is independently and identically distributed in accordance with the extreme value distribution. These assumptions lead to the multinomial logit model. The paper estimates the model using data from a survey of 350 rural households in Southern Ethiopia.

The paper finds that shocks are important factors in explaining both the decision to borrow and the source of credit. In particular, negative shocks that affect household's assets, such as the seizing of farmland and theft, or human capital, such as the death of the family head, reduce the probability of borrowing from formal lenders or from both formal and informal lenders at the same time. The study supports only to some extent the assumption that informal credit contributes to smooth consumption. Last, networking effect is very significant and demonstrates how the two markets interact.

A model that would consider dynamic consumption patterns would have been more appropriate. In fact, one of the limitations of the study is the reliance on a cross-section analysis and the data is limited to just one village. Further research would extend the data set geographically and across time.

The formal lenders are not willing to provide contingent loans, maybe because of a limited ability to assess and diversify risk. Besides, the available formal credit products are not proper to finance long term risk management strategies but pesticides, fertilizers and improved seeds that are entirely used in every agricultural cycle. In this regard, proper risk transfer strategies and instruments, as well as better tailored loan products, are needed in order to increase outreach into the rural areas.

To the authors’ knowledge, this is the first paper that investigates how shocks influence the decision to borrow and the source of credit in Ethiopia.

The purpose of this paper is to investigate the economic significance of informal borrowing between friends and relatives in rural China. Guided by an economic model of household‐production interactions, the paper provides results from a survey of over 1,500 households including general linear model and logistic regression results. The paper finds evidence of a “small farm bias” in the use of informal credit, but the paper cannot generalize this to credit rationing as a matter of course. In part, it is believed that a preference for informal borrowing is related to some forms of credit rationing, spillover effects and collateral as some literature suggests, but the results suggest that by no means are these mutually exclusive or exhaustive.

This paper uses regression techniques based on 1,557 farm household surveys gathered by the authors in Shaanxi, Gansu and Henan Provinces in 2007 and 2008.

The paper argues that informal lending amongst friends and relatives cannot be dismissed as a significant economic factor in the financing of China's agricultural sector. A small farm bias in formal lending is indicated by the results, but there are many factors other than credit rationing which affect a households' decision to borrow informally.

The research is limited to the survey data used. China's agricultural economy is too large to assert that the informal‐formal relationships described herein are general, even though the results are supported by other research.

The paper makes the case that the study of agricultural finance in China should include informal lending as part of any credit study. In addition, the paper argues that the use of the term “informal lending” should not generally group familial lending with other forms of interest‐bearing loans such as pawn shops or money lenders.

China's rural credit needs are huge and many farmers do not have access to formal credit. This paper argues that the strength of trust relationships between friends and family is sufficiently high that nearly 60 percent of all credit outstanding is between friends and relatives at zero interest rates.

This, it is believed, is one of the first comprehensive studies on informal lending in China.

The purpose of this paper is to investigate how China's rural public pension affects farmers' formal borrowing, which has always been rationed.

This paper uses a difference-in-difference (DID) estimation to evaluate the effect of the implementation of the New Rural Pension Scheme (NRPS) at the end of 2009 on farmers' formal borrowing.

The results show that the NRPS significantly reduces farmers' formal borrowing from rural credit cooperatives (RCCs). The effect is significant among the elderly, eastern China and high-income groups.

This study contributes to the literature by identifying another potential reason for rural formal credit shortage. Policymakers and rural formal financial institutions should consider the demand side problem of lending.

This study aims to examine the accessibility, loan purposes and effects of informal credits on poor households in Northern mountainous Vietnam.

This study used primary data collected directly from surveying 402 poor households in Thai Nguyen province using a well-designed questionnaire. The probit model is employed to specify which factors affect access to informal credit, the tobit model is used to estimate the borrowing functions specified. In addition, descriptive statistical analysis is also used to describe the accessibility, purposes and effects of informal credit on poor households.

The results show that there is a considerably high proportion of informal borrowings from relatives, neighboring villagers, professional moneylenders, rotating saving and credit groups, trade credits and mortgages. Labor force ratio, social capital and residential land areas are the key determinants of poor households' informal borrowings. The purposes of borrowing are diverse. The informal loans also have certain significant effects on poverty reduction and the welfare of poor households.

The effects of the informal loans on house welfare should be quantitatively evaluated.

The findings from these analyses allow us to draw relevant policy implications for the development of rural finance in other low-income, developing countries.

This research contributes to the body of published literature in several ways. Firstly, it provides understanding of the performance of the informal financial subsector. Secondly, the informal subsector of rural finance is evaluated in close relation to the formal subsector.

The purpose of this paper is to understand the determinants of financial inclusion and the determinants of barriers to financial inclusion in India. Also, the purpose is to ascertain the determinants of informal financial activities in India.

The data have been collected from the Global Findex Database (Findex) 2017. Various measures of financial inclusion, namely, ownership formal accounts, use of accounts for saving and borrowing, ownership and use of the debit card are used. The independent variables used are: age, income, education and gender. Given the binary nature of dependent variables, this paper uses the Probit model to draw the inferences.

The results show that gender, age, education and income have a significant impact on the various measures of financial inclusion. Additionally, these factors have a significant impact on the informal saving and borrowing.

The given study uses the deferent measures of financial inclusion. An index of financial inclusion created using all the financial inclusion measures would be a better indicator of financial inclusion.

The results of this study would be useful for policymakers to identify the determinants and barriers of financial inclusion in India. The results show that policymakers should focus on the female population, in particular, and education and income enhancing measures, in general, to make financial inclusion more inclusive.

The study is the first of its kind to analyze financial inclusion in India using the Findex. Unlike previous studies, variables such as education and income are constructed more pragmatically. In particular, the study tries to understand the socio-economic determinants of financial inclusion measured as ownership of formal accounts, formal saving, formal credit, ownership of debit cards and use of debit cards. The study also analyzes the determinants of barriers to financial inclusion, savings (formal and informal) and borrowing (formal and informal).

This study aims to investigate how the Islamic banking share (percentage of total Islamic banking assets relative to total banking sector assets) and individual characteristics (gender, age, income and education) affect financial inclusion in 14 Middle Eastern and North African (MENA) countries with different income levels.

This study uses data from the 2014 World Bank Global Findex database to analyze the impact of individual characteristics, Islamic banking share and countries’ developmental levels on financial inclusion and its barriers in MENA countries. The probit estimation method is used for estimations.

The findings indicate that financial inclusion, particularly in middle-income MENA countries, is lower than the global average. While being male, rich and older positively affects financial inclusion in these countries, education does not. Islamic banking practises also contribute to financial inclusion, especially for individuals with strong religious affiliations. The effect of Islamic banking on financial inclusion is found to be greater in middle-income MENA countries.

Islamic banking institutions could play a greater role in promoting financial inclusion in the MENA region by offering Sharia-compliant products that meet individuals’ needs, matching the specific requirements and status of each country with affordable costs and offering adequate information to customers. Governments should promote more Islamic banking and incentivise investments in technology, which helps expand financial inclusion.

This is the first study to examine the influence of Islamic banking share and countries’ levels of development on financial inclusion in the MENA region.

Based on a survey of 897 farm households, the purpose of this paper is to build a framework using cluster analysis to explain how farmers make decisions on joining group guarantee, and analyzes factors influencing their decisions using multinomial and binary Logit regressions.

The approach of combining cluster analysis with Logit regression is an innovative approach to survey assessment. In addition, by design the authors have identified the four mutually exclusive groups of borrowers combining Group Guarantee membership and actual formal borrowing.

An extremely important observation according to the data is that most farmers appear to be part of group guarantees only because they have to in order to get access to formal credit products. 87.21 percent of the people who belong to groups and utilize the formal credit products belong to this category because their lenders have made participation in groups compulsory for access to credit. This may ration farmers’ willingness to even apply for credit. It also indicates a preference on the part of older and more risk-averse respondents to avoid participation in group guarantees. Out of financial characteristics the total loan holdings appears to be the only significant indicator of participation in group guarantees. Furthermore the results indicate that informal and formal credit appear to be replaceable for farmers.

The survey is confined only to the counties investigated. China is very diverse in its agricultural economies and many RCCs operate under different guidance and rules from those investigated here. Hence, while the authors can claim that the results are indicative, the authors cannot claim that they will hold generally.

Based on group guarantee loan mechanism and survey data analysis of 897 farm households, this paper analyzes influencing factors affecting farmers’ participation in group guarantees from microcosmic level, so as to provide some reference to further perfect micro credit operation mode and mechanism.

The results indicate that the Group Guarantee mechanism, while beneficial to some, may not hold global appeal for Chinese farmers. In the future RCCs may want to consider alternative approaches to loan security than placing the burden of guarantee on farmers’ family and friends.

The approach of combining cluster analysis with Logit regression is an innovative approach to survey assessment. In addition, by design the authors have identified the four mutually exclusive groups of borrowers combining Group Guarantee membership and actual formal borrowing.

This paper aims to examine the relation between religiosity and formal financing in the context of long- and short-term corporate loans.

This paper uses archival methodology to conduct a multiple regression analysis with the amount of long- and short-term corporate loans as the dependent variable and a measure of religiosity as the key explanatory variable.

This paper offers four findings. First, when a private firm locates in a high religiosity region, it is more likely to get more corporate loans and the amount of corporate loans is positively correlated with the extent of religiosity. Second, religiosity drives a private firm getting more (less) short-term (long-term) loans. Third, a private firm in a high religiosity region is able to incur lower interest cost associated with more short-term loans. Finally, the results are confined to Buddhism, Taoism and Christianity.

Overall, the findings are consistent with the notion that religiosity shapes the local culture so that individuals, some of them are borrowers and lenders, show the religious traits in the formal lending and borrowing relationship.

Overall, findings of this paper are consistent with the notion that religiosity shapes the local culture so that individuals, some of them being borrowers and lenders, show religious traits in the formal lending and borrowing relationship.

The purpose of this paper is to investigate the roles that access formal and informal finance as well as mobile money play in facilitating the choice of coping strategies that households adopt.

The research methodology considers the estimation of binary outcome maximum likelihood probit models for each coping strategy on a vector of covariates that include measures of financial inclusion, household characteristics and community variables.

The author finds that financial inclusion is associated with a higher likelihood of adopting market-oriented strategies such as selling assets or borrowing and lower likelihood for non-market strategies such as reliance on informal networks and reducing consumption.

To the best of the author’s knowledge, this paper provides the first empirical attempt examining the pathways through which financial inclusion may facilitate the choice of coping strategies using nuanced household data.