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Content available
Article
Publication date: 26 June 2023

Eunice Stella Nyarko, Kofi Amoateng and Anthony Qabitoo Quame Aboagye

This paper examines the impact of financial inclusion on poverty through access to mobile money in developing economies.

Abstract

Purpose

This paper examines the impact of financial inclusion on poverty through access to mobile money in developing economies.

Design/methodology/approach

The authors employ the principal component analysis to construct an index of financial inclusion using demand and supply indicators, including mobile accounts. The authors use the two-step system GMM estimator for the analysis because of its efficiency and robustness in addressing heteroscedasticity and autocorrelation.

Findings

The main finding is that financial inclusion generally increased and significantly reduces poverty in the sample period. Furthermore, income inequality worsens poverty.

Research limitations/implications

This study has few limitations. First, the empirical analysis of the study is restricted to macroeconomic factors only because of limited Household Finance Survey data set and time availability. Second, the study is limited to developing countries and the results cannot be generalized.

Practical implications

Financial inclusion is a significant policy tool for poverty reduction. There is the need to enhance strategies that further improve financial inclusion by expanding and improving the use of mobile money accounts.

Social implications

The paper sheds light on how developing countries can harness financial inclusion to reduce poverty.

Originality/value

The paper differs from the previous studies in two ways. Firstly, mobile money account is included in the computation of financial inclusion index over the sample period. It also determines the impact of financial inclusion on poverty for short-run and long-run periods.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2021-0690

Details

International Journal of Social Economics, vol. 50 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 9 August 2021

Neil Bernard Boyle and Maddy Power

Background: Rising food bank usage in the UK suggests a growing prevalence of food insecurity. However, a formalised, representative measure of food insecurity was not collected…

Abstract

Background: Rising food bank usage in the UK suggests a growing prevalence of food insecurity. However, a formalised, representative measure of food insecurity was not collected in the UK until 2019, over a decade after the initial proliferation of food bank demand. In the absence of a direct measure of food insecurity, this article identifies and summarises longitudinal proxy indicators of UK food insecurity to gain insight into the growth of insecure access to food in the 21st century.

Methods: A rapid evidence synthesis of academic and grey literature (2005–present) identified candidate proxy longitudinal markers of food insecurity. These were assessed to gain insight into the prevalence of, or conditions associated with, food insecurity.

Results: Food bank data clearly demonstrates increased food insecurity. However, this data reflects an unrepresentative, fractional proportion of the food insecure population without accounting for mild/moderate insecurity, or those in need not accessing provision. Economic indicators demonstrate that a period of poor overall UK growth since 2005 has disproportionately impacted the poorest households, likely increasing vulnerability and incidence of food insecurity. This vulnerability has been exacerbated by welfare reform for some households. The COVID-19 pandemic has dramatically intensified vulnerabilities and food insecurity. Diet-related health outcomes suggest a reduction in diet quantity/quality. The causes of diet-related disease are complex and diverse; however, evidence of socio-economic inequalities in their incidence suggests poverty, and by extension, food insecurity, as key determinants.

Conclusion: Proxy measures of food insecurity suggest a significant increase since 2005, particularly for severe food insecurity. Proxy measures are inadequate to robustly assess the prevalence of food insecurity in the UK. Failure to collect standardised, representative data at the point at which food bank usage increased significantly impairs attempts to determine the full prevalence of food insecurity, understand the causes, and identify those most at risk.

Details

Emerald Open Research, vol. 1 no. 10
Type: Research Article
ISSN: 2631-3952

Keywords

Open Access
Article
Publication date: 15 July 2021

Minh Ha-Duong and Hoai-Son Nguyen

The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.

1569

Abstract

Purpose

The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.

Design/methodology/approach

The authors use a self-reported satisfaction indicator as complementary to objective indicators based on national household surveys from 2008 to 2018.

Findings

In 2010, the fraction of households with access to electricity was over 96%. However, over 24% declared their electricity use did not meet their needs. Since 2014, the satisfaction rate is around 97%, even if 25% of the households used less than 50 kWh/month. Today there is electricity for all in Vietnam, but electricity bills weigh more and more in the budget of households.

Practical implications

The subjective energy poverty measure allows better international statistics: unlike poverty or needs-based criteria, self-assessed satisfaction of needs compares across income levels and climates.

Social implications

Inequalities in electricity use among Vietnamese households decreased during the 2008–2018 period, but are not greater than inequalities in income, contrary to the findings of Son and Yoon (2020).

Originality/value

Engineering and econometric objectivist approaches dominate the literature on sustainability monitoring. Out of 232 sustainable development goal (SDG) indicators, only two are subjective. Yet the findings show that subjective indicators tell a different part of the story. Access is not grid building, but the meaningful provision of electricity to satisfy the needs.

Details

Fulbright Review of Economics and Policy, vol. 1 no. 1
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 17 March 2022

Michael Asiedu, Nana Adwoa Anokye Effah and Emmanuel Mensah Aboagye

This study provides the critical masses (thresholds) at which the positive incidence of finance and economic growth will be dampened by the negative effects of income inequality…

1632

Abstract

Purpose

This study provides the critical masses (thresholds) at which the positive incidence of finance and economic growth will be dampened by the negative effects of income inequality and poverty on energy consumption in Sub-Saharan Africa for policy direction.

Design/methodology/approach

The study employed the two steps systems GMM estimator for 41 countries in Africa from 2005–2020.

Findings

The study found that for finance to maintain a positive effect on energy consumption per capita, the critical thresholds for the income inequality indicators (Atkinson coefficient, Gini index and the Palma ratio) should not exceed 0.681, 0.582 and 5.991, respectively. Similarly, for economic growth (GDP per capita growth) to maintain a positive effect on energy consumption per capita, the critical thresholds for the income inequality indicators (Atkinson coefficient, Gini index and the Palma ratio) should not exceed 0.669, 0.568 and 6.110, respectively. On the poverty level in Sub-Saharan Africa, the study reports that the poverty headcount ratios (hc$144ppp2011, hc$186ppp2011 and hc$250ppp2005) should not exceed 7.342, 28.278 and 129.332, respectively for financial development to maintain a positive effect on energy consumption per capita. The study also confirms the positive nexus between access to finance (financial development) and energy consumption per capita, with the attending adverse effect on CO2 emissions inescapable. The findings of this study make it evidently clear, for policy recommendation that finance is at the micro-foundation of economic growth, income inequality and poverty alleviation. However, a maximum threshold of income inequality and poverty headcount ratios as indicated in this study must be maintained to attain the full positive ramifications of financial development and economic growth on energy consumption in Sub-Saharan Africa.

Originality/value

The originality of this study is found in the computation of the threshold and net effects of poverty and income inequality in economic growth through the conditional and unconditional effects of finance.

Details

Journal of Business and Socio-economic Development, vol. 3 no. 3
Type: Research Article
ISSN: 2635-1374

Keywords

Content available
Book part
Publication date: 15 November 2018

Yi-Ming Wei and Hua Liao

Abstract

Details

Energy Economics
Type: Book
ISBN: 978-1-78756-780-1

Open Access
Article
Publication date: 4 December 2017

Benjamin Fuchs

Poverty transitions can be explained by two opposing theories: the traditional sociological approach that focusses on social stratification and individualisation theory, which…

1159

Abstract

Purpose

Poverty transitions can be explained by two opposing theories: the traditional sociological approach that focusses on social stratification and individualisation theory, which emphasises on life course risks for all strata. Both perspectives have been investigated extensively for income poverty while neglecting other important poverty indicators, such as deprivation or the receipt of social assistance. The purpose of this paper is to focus on the latter to investigate the impact of social stratification (e.g. social class), life course risks (e.g. health problems), and their interactions on the probability of social assistance entry for Germany.

Design/methodology/approach

The analysis utilises survey data containing a sample of first-time social assistance entrants and a sample of the residential population. Applying case-control methodology, logistic regression is conducted to model the impact of social stratification determinants, life course risks, and their interactions on the probability of social assistance entry.

Findings

Social stratification determinants, particularly social class, have a significant effect. However, their effect is weaker than the effect of life course risks. Contrary to the prediction of individualisation theory, the poverty-triggering impact of life course risks varies substantially by social stratum. The combination of both theories yields high predictive power.

Originality/value

This paper is the first to comprehensively test social stratification and individualisation theory with respect to social assistance receipt as a poverty indicator. It is the first paper that investigates the entire population at risk of social assistance entry in Germany.

Details

International Journal of Sociology and Social Policy, vol. 37 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Content available
Article
Publication date: 25 June 2021

Geri Mason and Al Rosenbloom

This paper aims to discuss the consequences for responsible management education and learning (RMEL) as an enduring feature of the post-COVID-19 world: increased inequality and…

Abstract

Purpose

This paper aims to discuss the consequences for responsible management education and learning (RMEL) as an enduring feature of the post-COVID-19 world: increased inequality and increased vulnerable individuals living in poverty. Because of this, responsible management education and learning (RMEL) must integrate poverty as a threshold concept on which students’ cognitive frame is built.

Design/methodology/approach

This paper advocates for poverty to be taught as a multidimensional threshold concept that encompasses a person’s freedoms and capabilities, in addition to their income (Sen, 1999). Further, this paper provides a framework for integration into all curricula grounded in RMEL’s unique domain of inquiry and study: the integration of ethics, responsibility and sustainability.

Findings

Threshold concepts transform student learning in durable, immutable ways. When poverty is taught as such, students develop more elaborate poverty cognitive frames that they can apply across their entire course of study. This paper describes how to: (1) reframe poverty as a threshold concept; (2) apply Biggs’ (2003) framework of constructive alignment to assure the integrity of course learning objectives and the curriculum; (3) create poverty-related assignments that are emotionally engaging and relevant for students (Dart, 2008); and (4) use this proposed framework of including poverty in business classes.

Research limitations/implications

Without an integrated multidimensional understanding of poverty, students will not emerge as managers competent in addressing these critical issues from within a business context (Grimm,2020). It will be imperative in future research to evaluate the outcomes of doing so and to determine whether this solution creates responsible managers more competent in addressing poverty-rooted issues.

Originality/value

This paper brings together two elements of student learning central to understanding poverty: threshold concepts and cognitive frames. This paper also uses Biggs’ (2003) constructive alignment framework to assure that curricular and course changes have both internal coherence and explicit learning outcomes.

Details

Journal of Global Responsibility, vol. 13 no. 1
Type: Research Article
ISSN: 2041-2568

Keywords

Open Access
Article
Publication date: 24 April 2024

Junaidi Junaidi

This research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic…

Abstract

Purpose

This research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable.

Design/methodology/approach

A total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012–2020. Fixed-effect regression analysis was used to examine variable’s interactions.

Findings

The empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables.

Research limitations/implications

The current study was limited to Indonesian Islamic banks and the district’s perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields.

Practical implications

Bank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics.

Originality/value

This study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 9 June 2023

Segun Thompson Bolarinwa and Munacinga Simatele

The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.

Abstract

Purpose

The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.

Design/methodology/approach

The study adopts dynamic panel threshold analysis, estimated within the framework of system Generalized Method of Moments (SGMM) to control for endogeneity and simultaneity. Data from 40 selected sub-Saharan African countries between 1991 and 2018 are used for the study.

Findings

Empirical results confirm the existence of an average threshold of 31% share of informality in GDP. Also, the paper finds that threshold of informality that addresses mild and severe poverty varies between 24.32 and 36.75%.

Research limitations/implications

The work is limited to African economies. Evidence from other emerging and developed economies is suggested for further research.

Practical implications

Overall, the empirical results indicate a threshold in the informality–poverty nexus. Therefore, an excessive informality level does not benefit the African growth process. Policymakers and governments are advised to operate within the bounds of the threshold of informality that reduces poverty and improve the African economic growth process.

Originality/value

The paper is the first study to provide empirical findings on the nonlinear and threshold argument in the informality–poverty nexus, as far as the authors know.

Details

African Journal of Economic and Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 27 December 2022

Tim Hartwig and Trung Thanh Nguyen

The authors examine the association between infrastructure and a household's resilience capacity against shocks and the impacts of a household's resilience capacity on household…

1469

Abstract

Purpose

The authors examine the association between infrastructure and a household's resilience capacity against shocks and the impacts of a household's resilience capacity on household consumption and poverty.

Design/methodology/approach

The authors use panel data (collected in 2010, 2013 and 2016) from 1,698 households in Thailand and 1,701 households in Vietnam and employ an instrumental variable approach.

Findings

The authors find that transportation and information and communication technology (ICT) infrastructure help improve households' absorptive capacity in coping with shocks. Furthermore, this capacity can prevent households from reducing consumption and falling into poverty.

Practical implications

Rural development policies should attend to transportation and ICT infrastructure.

Originality/value

The authors establish empirical evidence on the association between infrastructure and a household's resilience capacity and the impact of resilience capacity on poverty.

Details

Journal of Economics and Development, vol. 25 no. 1
Type: Research Article
ISSN: 1859-0020

Keywords

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