Finance and economic development

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Non oil exports finance and economic development in Saudi Arabia

Non oil exports finance and economic development in Saudi Arabia

Financial aspects have been found to be highly important in impacting on firms’ activities. Firms may require short, medium, and long-term finance. The short-term finance is required to pay working capital needs such as purchases of raw materials, payment of wages and salaries etc. On the other hand, medium-term and long-term finance includes operations like loans to finance fixed assets and long-term working capital needs. For this reason, financial constraints are often cited as an important factor in firms’ exports. Moreover, a firm that is involved in foreign markets can earn benefits from exporting that enhance its financial position: human capital skills and production experience come from different internationally recognized standardisation, as well as production capacity and offer the opportunity to expand. As a result, the growth in the firm reflects on the country’s economic development, which supports income diversification, creates employment opportunities, provides a source of foreign exchange, and so on (Cavusgil and Nevin, 1981; Pinho and Martins, 2010). Despite the importance of studying the financial constraints and its impact on export activity at the macroeconomic level, which was noted for example by Beck (2002), and Becker and Greenberg (2007), these studies tried to address the link between financial development and exports. These theoretical and empirical studies reveal a positive impact of financial development on foreign exporting markets, and countries with well-developed financial systems tend to export goods produced in industries that use external finance effectively (Lancheros and Demirel, 2012). However these literatures remain silent regarding such effects at the firm level (Kiendrebeogo and Minea, 2012).
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The role of Islamic finance in economic development

The role of Islamic finance in economic development

Islamic financial institutions have been growing rapidly in the past few years. Islamic finance refers to investments that are permissible in accordance with Sharia, the Islamic law. Sharia law views money as a measuring tool for value and not an “asset” itself. “It does not permit receipt and payment of riba (interest), gharar (excessive uncertainty), maysir (gambling), short sales or financing activities that it considers harmful to society” (IMF website). Interest, a form of income from money, is therefore prohibited. For example, the income obtained from banks must come from the gain or loss of the enterprises they underwrite and not from interest obtained from loans granted. Sharia- compliant finance is thus often viewed as a unique form of socially responsible investment. Islamic finance exists to further the socio-economic goals of Islam. The question is: How can Islamic finance contribute to economic development? This essay explores its contribution to economic development through microfinance and the use of sukuk (Islamic bond). It will also explore the main opportunities and challenges for Islamic finance today. In order to facilitate the following reading, all Islamic terms used in this essay will be defined in the glossary (Appendix I).
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Investment finance, saving and funding and financial systems in economic development: theory and lessons from Brazil

Investment finance, saving and funding and financial systems in economic development: theory and lessons from Brazil

In the empirical part (chapters VI to VIII), the Brazilian experience of financial and economic developments between 1947 and 1983 is used as case-study. The period is divided into two distinct phases of Brazil’s development. The first one (1947-66) was characterised by the import-substitution of durable consumption goods and of substantial part of the light capital goods (1947-61), followed by a recession between 1962-66. The second phase (1967-83) marks the resumption of growth (1967- 73) and industrialisation (1974-80) with the Second National Development Plan which promoted the import-substitution of heavier capital goods and chemicals. As regards the financial structure, the two phases are also divided by the 1964-6 financial reform, which transformed the bank-dominated system into a more complex and segmented structure. The relevance of the Brazilian experience lies on the fact that the reform, at least as regards the provisions for the development of mechanisms to finance long-term investment, was guided by what was previously coined the ‘prior- saving’ argument. In a nutshell, this reform attempted to enhance the country’s internal saving, at the same time creating mechanism to increase the absorption of external saving. This was done by a mixture of institutional reforms (creation of investment banks and incentives to acquisition of stocks), indexation of financial assets and other measures which were viewed as stimuli to saving. We claim that the misleading theoretical foundations of the 1964-6 reform created a financial system which was even less functional to Brazil’s economic development than the one which existed before the reform. In addition, it is claimed that much of the financial chaos which the country increasingly had to face in the 1980s - that is, internal and external debt, severe financial instability and highly speculative character of the financial system - can be greatly blamed on the 1964-65 financial reform.
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[K624.Ebook] Free PDF Economic Development Finance By Karl F Seidman.pdf

[K624.Ebook] Free PDF Economic Development Finance By Karl F Seidman.pdf

"'Incredible. What a major contribution, just to pull together the diverse array of information out there about development finance into one volume. I consider this book an "education" for the lay reader, and a fabulous resource for the practitioner of development finance' - Dr Rhonda Phillips, University of Florida; 'This is the most comprehensive and best-written economic development text in the market. This would be a good text for a graduate level course and would work well with a one-semester teaching plan... The main strength of the book is the author's ability to summarize concepts, programs, and institutions and then draw from them issues, lessons, and challenges' - John S Strong, School of Business, College of William and Mary"
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Government finance institute provision: impact of enterprise development on SMMEs growth and local economic development in Gauteng

Government finance institute provision: impact of enterprise development on SMMEs growth and local economic development in Gauteng

analysed from June 2016 with the focus on the growth in turnover and employment figures prior to and after the SMMEs participated in the GEP support program. This paper uses a quantitative research approach and positive paradigm is assumed. Also, a quasi-experimental research study is used similar to a prior study by Leeuw (2010), with a t-test to measure the growth. This implies that funding, as an aspect of public enterprise development, has a positive influence on the sales and employment growth of SMMEs which in turn has implied positive effect on local economic development (LED) in Gauteng. The results from this study showed that the number of employees increased by an average of 13 employees per company after the GEP intervention from the original average of 8 employees before the awarding of the loan. However, the data analysis of the t-test summary statistics provide sufficient evidence that Hypothesis 1: A positive direct correlation exists between finance provision and growth in employment of SMMEs, is not supported. The difference in the number of employees is not statistically significant since the p-value of the t-test (p-value = 0.095) is greater than 0.05. Thus, the null hypothesis is not rejected and it is concluded that there is no correlation between provision of finance and growth in employment of SMMEs. Hypothesis 2: A positive direct correlation exists between finance provision and growth in turnover of SMMEs, the cross tabulation showed that there was an increase in the turnover earned. It is thus, concluded that there is a positive direct correlation between the provision of finance and the growth in turnover of SMMEs.
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Impact of micro finance on socio economic development: an empirical  study on selected shgs of coastal districts of Odisha

Impact of micro finance on socio economic development: an empirical study on selected shgs of coastal districts of Odisha

Kumaran (2002) found that the micro enterprises, which were set up by the SHGs promoted by NGOs and banks were more viable and sustainable when compared to the micro enterprises of SHGs promoted by DRDA. He reasoned that this is due to the differences in the quality of technical training and escort services provided to the entrepreneurs by the NGOs in comparison to DRDAs. Misra (2006) in his paper assessed the socio-economic impact of SHG- bank linkage program in India. A field research was undertaken by the researcher to study the impact of micro finance program covering 93 client households from 5 SHGs from 3 different locations of western and central part of India. The group members who were in the program for at least two years were included in the survey. It was found that the entire group members were saving regularly at fixed intervals and dependence on money-lenders was eliminated for two-third of the clients. The social development index of group members measured on Likert scale showed a definite positive trend after joining SHGs. Loan repayment rate was also very high. But, while measuring economic development, it was found that just 6 per cent of the members had taken up any economic activity in post-group formation period. Bank credit and savings were used mostly for consumption and other emergency needs. While the program had a definite impact on building social capital, but it had marginal impact on income level.
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Essays on governance, public finance, and economic development

Essays on governance, public finance, and economic development

The third essay which is captured in chapter four of the thesis explains the interaction between corruption, …scal consolidation and economic devel- opment. The essay sought to answer the following questions. What is the link between corruption, tax evasion and …scal consolidation? Is there a link between corruption, tax evasion and economic development? Corruption in this essay involves bureaucrats delivering poor quality public services while quoting prices for high quality public services. Taxable households are as- sumed to able to observe the quality of public services and perceive taxes as the price for quality public services. Poor quality public services as a result of corruption create incentives to evade taxes. The e¤ect of corruption-induced tax evasion is to reduce the ‡ow of revenue to public co¤ers. The govern- ment in this framework seeks to run a balanced budget, with corruption- induced tax evasion however, a …scal de…cit is apparent. The analysis shows that corruption-induced tax evasion: 1) makes increasing the tax payable to eliminate the …scal de…cit counterproductive; 2) restricts the government to cutting back the quantity of public services hence reducing public expendi- ture so as to ensure …scal stability; and 3) through inducing the government to cut back the quantity of public services, it worsens productivity and in- creases bureaucratic incentives to engage in corruption. The essay shows that under conditions of low corruption incidence following the cutting of back of government expenditure, there is a likelihood of an economy break- ing the poverty trap and transiting to a higher economic development path. The essay also shows the presence of multiple equilibrium where high (low) institutional quality is associated with high (low) economic development.
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Finance and economic development in Islam, historical perspective

Finance and economic development in Islam, historical perspective

One of these is esham, originally utilized by the Ottoman Caliphate back in 1775 to borrow large Shari ’ah based funds from the public in order to pay a huge war indemnity to the Russians. 52 A research team at INCEIF, the Global University of Islamic Finance at Kuala Lumpur, has identified esham as a multiple, unlimited mandate mudaraba, which also yielded fixed returns. 53 Thus, the battle to develop Shari’ah based profit and loss sharing funds not only enhancing entrepreneurship but also yielding fixed returns to the investors has now reached a new plateau. The INCEIF team is convinced that esham can be used for government borrowing. Some team members are also of the opinion that it can be used by the central banks of Islamic countries for open market operations as well as for small and medium enterprise financing.
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Key points: corporate governance, economic development, market based investment process, finance and growth.

Key points: corporate governance, economic development, market based investment process, finance and growth.

Importantly, countries do not always reform their corporate governance frameworks to achieve the best possible outcomes. In some sense, this is shown by the pervasive importance of the origin of the legal system in a particular country in many analyses and dimensions. Whether a country started with or acquired as a result of colonization a certain legal system some century or more ago still has systematic impact on the features of its legal system today, the performance of its judicial system, the regulation of labor markets, entry by new firms, the development of its financial sector, state ownership, and other important characteristics (Djankov and others 2003). Evidently, countries do not adjust that easily and move to some better standards to fit their own circumstances and meet their own needs.
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STAFF COMMENTS FINANCE, ADMINISTRATION AND ECONOMIC DEVELOPMENT COMMITTEE September 21, 2011

STAFF COMMENTS FINANCE, ADMINISTRATION AND ECONOMIC DEVELOPMENT COMMITTEE September 21, 2011

An evaluation committee made up of staff members from both the Finance & Information Technology along with Jim Beasley, City Cash Management Consultant, met and shared comments from their independent reviews of the nine received proposals. The nine proposals were reviewed for compliance with the mandatory criteria included in the RFQ and the top five firms (Bank of America, BNY Mellon, JP Morgan, US Bank, Wells Fargo) were identified as candidates to be interviewed for further consideration. The evaluation committee reviewed the proposals based on the following criteria:

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Finance, Technology and Inequality in Economic Development

Finance, Technology and Inequality in Economic Development

The impact of financial markets on technological choice is also stressed by Saint- Paul (1992), Castro, Clementi and MacDonald (2005), and Bencivenga, Smith and Starr (1995). Saint-Paul (1992) shows that, without a well-functioning financial market, risk-averse agents may choose less specialized and less productive technolo- gies. Castro et al. (2005) demonstrate that stronger investor protection facilitates economic development given that the technology for producing investment goods involves higher idiosyncratic risk than the technology for producing consumption goods. In contrast, Bencivenga et al. (1995) show that a technological switch led by a better financial infrastructure may reduce the growth rate if the new technology requires a longer length of periods for which investments must be committed. Those studies are closely related to ours in motivation, but our primary focus is to examine the effects of financial development on inequality and welfare when technologies are different in capital intensities and the sizes of minimum investments.
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Finance, economic development and the transition: the East German case

Finance, economic development and the transition: the East German case

From the discussion of 'forwardness' in section 3.3, we know that the East German banking structure closely resembles the West German one. We can expect strong competition between the banking groups and this should prevent the exploitation by the local banks of local firms which characterizes the Mezzogiorno. Of course, the information available for local banks and cb-branches in East Germany with which to evaluate loan applications is poor. The normal support mechanisms in West Germany such as the sophisticated regional data bases held by the savings banks with balance sheet information on large numbers of SMEs will take time to build up in East Germany. Similarly, the institutional infrastructure of local chambers of commerce, industry associations and firm-firm relationships which allow a flow of information to the banks relevant to the assessment of the viability of projects is not yet effective in East Germany. However, these problems should ease over time and as they do, in the context of the fundamentally sound structure of development and commercial banking that is now in place, we would expect that credit rationing on a scale larger than in West Germany should not occur in East Germany.
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Finance, Institutions and Economic Growth

Finance, Institutions and Economic Growth

This paper tests the hypothesis that the interaction between institutional quality and financial development – i.e. a financial system embedded in good institutions – has a separate positive influence on economic growth, over and above the effect of the levels of financial development and institutional quality. Testing this hypothesis within individual countries requires, however, data on institutional quality that span many decades, since institutions usually change very slowly. Such data are only available for the last twenty years or so, which makes time-series analysis not possible. However, we have been able to obtain institutional quality indicators for 72 countries for the period 1978-2000. We, therefore, utilise both cross-section and panel econometric methods to test our hypothesis. Additionally, we also examine whether the estimated relationship varies in accordance to the stage of economic development.
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Payment instruments, finance and development

Payment instruments, finance and development

The third line of research we contribute to is the literature on the role of trade credit in economic development in developing countries. 9 Suppliers have an advantage over other lenders in financing credit-constrained firms, which makes trade credit prevalent in financially less developed countries where the majority of firms has limited - if any - access to bank credit. Unlike credit from financial institutions, trade credit does not rely on formal collateral but on trust and reputation. Fafchamps (1997) shows in the context of Zimbabwe, where networks and statistical discrimination affect the screening of trade credit applicants, black entrepreneurs are disadvantaged by the difficulty to distinguish themselves from the mass of financially insecure short-lived African-owned businesses. Using firm-level data from five African countries Fisman and Raturi (2004) show that monopoly power is negatively associated with trade credit provision. Using a cross-country analysis, Fisman and Love (2003) show that industries with higher dependence on trade credit financing grow faster in countries with weaker financial institutions. Ge and Qiu (2007) compare the use of trade credit between state owned and non-state-owned companies in China and show that the non-state owned firms use relatively more trade credit when financing their operations. Cull et al. (2009) employ a large panel dataset of Chinese firms and find that poorly performing state-owned firms were more likely to redistribute credit to firms with limited access to formal financial markets during China’s economic transition. We contribute to this literature by showing that the use of mobile money as a payment device can serve as a commitment mechanism vis-a-vis creditors and thus enhance growth of financially constrained enterprises.
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Community Development Finance and Economic Justice

Community Development Finance and Economic Justice

Arguably in reaction to drawbacks of previous top-down approaches and coincid- ing with the curtailment of many War on Poverty programs, the 1970 s and 1980 s saw robust and widespread local activism to influence land use planning and public investment. This period witnessed growth in the volume of institutions and the variety of legal forms focused on local development. As illustrated by the CEI narrative, the community development corporation emerged as a foundational entity for locally based economic development. A CDC is typically a tax-exempt nonprofit organization chartered to revitalize particular disadvantaged neighbor- hoods by engaging in affordable housing and small business development, planning and advocacy, education and job training, or social services. The origin of CDC as a term of art is often attributed to the 1966 amendments to the Economic Opportunity Act to support community development corporations, followed by formation of dozens of early CDCs and the high-profile creation of the Bedford Stuyvesant Restoration Corporation in Brooklyn as a model. In subsequent decades, CDCs grew significantly in number and scale with substantial philanthropic funding, federal government support, and new state agencies for community development. Ancillary public policies enabled nonprofit CDCs to engage substantially in devel- opment, including IRS Revenue Rulings that expressly ruled community-based economic development to be a tax-exempt charitable purpose. 18
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Causality between financial development and economic growth, and the Islamic finance imperative: A case study of Indonesia

Causality between financial development and economic growth, and the Islamic finance imperative: A case study of Indonesia

Indonesia has been rapidly showing signs of advanced economic development. The country’s central bank is of the view that with the unbanked accounting for more than half of the population, the potential for growth in the world’s biggest Muslim population is immense. This article makes an attempt to test the possible directions of causality between financial development and economic growth, with Indonesia as a case study. It also discusses the results in the context of the development of Islamic finance in Indonesia. The study is conducted by applying the Autoregressive Distributed Lag model (ARDL) analysis (also known as the Bounds testing procedure) proposed by Pesaran et al. (2001). This article is believed to be one of the first to extend the finance-growth nexus discussion to include the development of Islamic finance. The study finds a unique cointegrating relationship among GDP per capita, gross fixed capital formation, annual population growth rate, and domestic credit to private sector . These findings have clear policy implications in that a policy of development and growth of the financial sector will help enhance economic growth, and will provide the necessary base from which Indonesia can significantly enhance its Islamic finance industry.
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Financial development and economic growth in muslim countries an empirical evidence between islamic and conventional finance

Financial development and economic growth in muslim countries an empirical evidence between islamic and conventional finance

economic development in addition to economic increase which is furthermore witnessed how the studies are usually economic development in addition to country certain. Moreover, Hasan et al. (2009) is to analyze your position involving legitimate institutions, economic deepening along with politics pluralism with development charges for the regional levels, specifically in China. Hasan et al. (2009) find that the effect of banks lending is insignificant and occasionally negative while capital market, authorized surroundings, knowing of low income privileges and also political pluralism employ a solid have an effect on about financial growth. Ghirmay (2005) examine the actual causal hyperlinks in between monetary advancement and economic progress in the small sample regarding 13 sub- Saharan African countries by using time series setting. This individual locates there's a substantial along with years to come connection in between financial advancement along with financial development in 12 out of 13 countries. They in addition locates how the causality jogging via fiscal improvement for you to economical growth in 8 out of 13 countries. Hondroyiannis et al. (2005) applying the vector autoregressive (VAR) models in case of Greece over the period of 1986-1999, they suggests that the two traditional bank and shares market can certainly build development within long haul.
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The impact of development finance institutions on socio-economic transformation : the case of South Africa

The impact of development finance institutions on socio-economic transformation : the case of South Africa

Different economies of the world strive for economic development. The definition of economic development has evolved over time. For example, Kindleberger and Herrick (1958) state that economic development includes improvements in material welfare especially for persons with the lowest incomes, the eradication of mass poverty with its correlates of illiteracy, disease and early death, changes in the composition of inputs and inputs and outputs that generally includes shift in the underlying structure of production. Meirer (1964) defines economic development as a process where an economy’s real national income increases over a long period of time. Seers (1972) defines economic development in terms of what has happened to poverty, unemployment and inequality over time. Thus, a decline in these three elements constitutes economic development. In the 1980s, the World Bank defined economic development as an improvement in the quality of life. In the 1990s, United Nations Human Development report (1994) indicated that the purpose of development is to create an environment in which all people can expand their capabilities and opportunities can be enlarged for present and future generation. Although there are different definitions of economic development, the theme that emerges from all of them is that it entails betterment of humankind.
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Micro Finance and Development Finance in India

Micro Finance and Development Finance in India

If you pay any attention to economic development in the third world, you have heard about microfinance. It’s the hottest thing going. Development organizations announce their involvement in microfinance with a kind of sacred hum. People are appropriately fascinated by the rise of Kiva.org, a website that enables you to engage in microcredit from the comfort of

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Entrepreneurship, Skills Development, Finance

Entrepreneurship, Skills Development, Finance

The ILO’s TREE programme evolved out of its Community Based Training programmes which were similarly anchored in participatory approaches at the local level. In Bangladesh the CBT project targeted rural women and integrated confidence building and gender awareness training with technical and business skills. Market assessment was conducted prior to designing the training package and post training support has also been particularly important in enabling women to start enterprises. Training was designed in modular forms and at times convenient and locations to the women partici- pants. A small training allowance encouraged participation and supported transport costs. In Cambodia CBT focused on training and employment needs, course identification with NGOs and the private sector, development of curriculum, training of trainers and selection of trainees for self employ- ment. Flexible modalities included both centre based training and shorter mobile courses. Microfinance options were linked to training. Tracer studies showed that of the 5,500 enrolments, drop-out rates were as low as 0.4 per- cent and some 77 percent of graduates were employed after training (mainly self employed). In the Philippines the CBT approach has flourished into the Community based training and Entrepreneurship Development (CBTED) programme which has become a standard programme of the national skills development organisation TESDA. The importance of pre-training economic research has been widely recognised and has been streamlined into all train- ing. CBTED is primarily implemented at the municipal level through coali- tions of government agencies and NGOs 26 .
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