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Bank Gala (Dalam Perspektif Ekonomi Syariah)
Abstract
Gala (Gadai tradisional) merupakan suatu praktik ekonomi tradisional yang telah lama hadir di wilayah Aceh, semua wilayah Aceh tentunya telah mengenal gala sebelum kemerdekaan Indonesia, jauh sebelum berkembangnya sistem ekonomi modern yang kita kenal sekarang. Masyarakat Aceh telah lama menerapkan suatu sistem ekonomi yang berlandaskan keadilan, tolong menolong kesetaraan transparansi religi saling percaya antara dua individu dalam mengadakan suatu perikatan yang saling menguntungkan diantara dua pihak.
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Purpose
The paper investigates the empirical relationship between microsavings and the financial performance of microfinance institutions (MFIs) in Sub-Saharan Africa (SSA).
Design/methodology/approach
The approach in this paper is decidedly empirical, and employs data obtained from Microfinance Information eXchange (MIX). The dataset consists of 350 microfinance MFIs domiciled in 36 Sub-Saharan African countries for the period covering 1998 to 2012
Findings
The panel estimation results consistently show that there exists a negative and statistically significant relationship between microsavings and the financial performance of MFIs in SSA. This is perhaps surprising, albeit rational considering the exceedingly elevated operating expenses that ascend from mobilising and managing microsavings, ceteris paribus, that could erode firm profitability. We draw policy implications from these important findings.
Research limitations/implications
Even though GMM estimation technique was employed and robustness checks, the issue of endogeneity cannot be eliminated entirely.
Practical implications
Microfinance industry is one of the fastest growing segments of the financial sector in SSA. The industry is increasingly becoming the core of financial inclusion in the region where two-third of the adult population lack access to formal financial services. Therefore, gaining an in-depth understanding of the role microsavings play in the financial performance of MFIs can contribute to the growth of the industry.
Originality/value
This study is timely considering the significant growth in the number of microsavings - there are currently twice as many microsavings accounts in SSA as there are microcredits. More importantly, based on 400 MFIs, that reported data to MIX in 2016, the total microsavings stood at about USD 11 billion against an aggregate loan portfolio of about USD 10.5 billion. The remarkable growth of microsavings in SSA, from less than USD 100million in 2000 to USD 11 billion in 2016, is the main motivation of undertaking this study.
Purpose
The purpose of this paper is to develop a critical analysis of the innovation discourse, arguing that a more contextualised understanding of the challenges of innovation for development and poverty reduction in low-income economies will help the authors’ to unravel new development opportunities and provide alternatives to conventional capitalist paths to innovation.
Design/methodology/approach
The authors offer an integrative review of the literature addressing the topic of innovation emerging from within developing countries. Because existing innovation models are generally presented in ways that reflect practices and thought patterns inherent to the industrialised world, a literature review that offers an initial conceptualisation and synthesis of the literature to date on the theme of innovation from within developing countries provides for a more valuable contribution than a reconceptualization of existing models.
Findings
The paper highlights different narratives of innovation, how they emerge and what are their implications. The authors outline a research agenda for generating new knowledge about innovation capabilities in what is generally known as the developing world.
Originality/value
This paper shows that the recent evolution of the discourse of development is increasingly intertwined with elements that originated in other discursive worlds. The last three decades of innovation research have been characterised by a “cross-pollination” between different disciplines: development studies, science and technology studies, business management and organisation studies. By reviewing major research works conducted by scholars in these disciplines, this paper weds literature that heretofore have remained largely isolated from each other. The key innovation narratives that the study unveils – e.g. inclusive growth, bottom of the pyramid, grassroots innovation – address major questions of concern to these academic scholars around the political and socio-technical aspects that influence a firm’s capacity to innovate in the context of developing countries.
Purpose
The purpose of this study is to empirically examine the impact of financial development on poverty reduction in Egypt. The paper also investigates whether financial development affects poverty via gross domestic product (GDP) growth.
Design/methodology/approach
This study uses the autoregressive distributed lag approach to estimate two specifications. The first is dependent on poverty by the ratio domestic credit to the private sector (percentage of GDP) and the second is dependent on the poverty by the ratio liquid liabilities to GDP or M3/GDP. The data are annual and cover the period from 1980 to 2015.
Findings
In long run, the study finds that relationship between economic growth and poverty is bidirectional. Financial development and poverty (household final consumption expenditure per capita) are complementary as bidirectional (in Granger sense). In short run, the study finds the bidirectional causality between financial development (real domestic credit to private sector per capita) and poverty reduction.
Practical implications
The findings suggest that governments should remove policies that impede the ability of banks to offer loan products or undermine the commercial incentive structure for banks or borrowers. It is crucial to enhance the role of specialized state-owned banks in financial intermediation.
Social implications
Several attempts have been made to investigate the relationship between financial development and other macroeconomic variables, but few studies have examined the impact of financial development on poverty reduction. Furthermore, the majority of the previous studies are based on Asia and Latin America – affording Egypt very little or no coverage at all.
The purpose of this chapter is to develop a framework that can be used to study the impact of multinational enterprises (MNEs) on sustainable development and poverty alleviation in developing countries. In the 3-year project awarded by the EC-FP7 program, six universities from Europe and three partners from developing countries participated: Brazil, Ghana, and India. For this purpose, a thorough literature review is done and a framework is presented. To confirm the conceptual framework, we performed several case studies with three MNEs in two countries, Ghana and India. Data collection was done through qualitative in-depth interviews with managers in the headquarters of MNEs, the subsidiaries, and the "linked" local firms and host governments. Results confirm our conceptual model that the autonomy of the subsidiary, strategies of MNEs, and local government policies play a major role in achieving positive externalities from MNE operations in developing countries. The key contribution of this study is the development of a relevant conceptual framework that can be used in the overall project. Our study confirms that an interaction between the MNE subsidiary and the local government is essential for the linkages and spillovers to occur that may benefit local economic development and poverty reduction in developing countries.
Purpose
The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance institutions across the globe. This paper examines the impact of practice and methods of credit delivery employed by ‘non- profit’ and ‘for-profit’ microfinance institutions on financial sustainability and outreach programmes of the microfinance institutions in Nigeria.
Design/methodology/approach
The study adopts the survey research design and multi-stage stratified random sampling procedure to collect data from 372 senior management staff, managing directors and board members of microfinance institutions of both groups in Nigeria. Data collected was analysed using descriptive statistics and multiple regressions analysis.
Findings
The findings suggest that the current practice and methods of credit delivery of microfinance in both ‘non-profit’ and ‘for-profit’ microfinance institutions have an inverse relationship with the financial sustainability and outreach programmes of the institutions. This study provides empirical evidence for the incessant failure of microfinance institutions in Nigeria.
Research limitations/implications
The study therefore recommends an immediate overhaul of the methodology and practice of microfinance institutions in the country to align with international best practice.
Originality/value
In spite of the huge literature on microfinance in Nigeria, there is not enough evidence to empirically prove that the practice of microfinance has affected the performance of the industry in Nigeria. This study sets out to fill that gap in the literature. The paper examines the practice of microfinancing in Nigeria vis-à-vis the performance of the microfinance institutions, categorized into NGO and microfinance bank ‘for-profit’ institutions using international best practices from countries where microfinance is highly successful as a benchmark for deployment of microfinance in Nigeria, in order to proffer policy direction to stakeholders on steps to take to ensure viability in the microfinance subsector in Nigeria.
Purpose
The purpose of this paper is to shed light on the factors that affect microfinance institutions’ (MFI) credit risk. These factors include MFIs’ characteristics and country-level indicators.
Design/methodology/approach
This empirical study uses an unbalanced panel data of 638 MFIs from 87 countries observed over a period ranging from 2005 to 2015. Random-effects models are used to estimate the models.
Findings
The results reveal that group-lending methodology, percent of loan granted to women and diversification activities reduce credit risk; credit quality is enhanced by the relevance of the information published by public or private bureaus and law enforcement cost increases credit risk. Finally, credit risk tends to be limited in a good institutional environment.
Practical implications
Several implications can be drawn in light of these findings. For MFIs’ managers, using group lending or granting more credit to women and diversifying their activities enhance their credit quality. Furthermore, authorities need to strength debt repayment institutions and reinforce institutional environment to help MFIs to limit their credit risk.
Originality/value
Previous studies focus on specific MFIs’ practices that enhance repayment rate or on country-level indicators. One of the contributions of this paper is the use of both types of indicators.
Purpose
The purpose of this paper is to identify the factors which are instrumental to poverty reduction opposed to many factors that are considered as impediments to poverty reduction in a poor country like Bangladesh.
Design/methodology/approach
This paper is an outcome of review of literature covered wide range of issues including sectoral contribution to economic growth but none has exclusively dealt with the instrumental role of the poverty reduction factors, insider’s view, long-term observations (1960-2014), and reviews of secondary data.
Findings
In order to reduce poverty, rather than attempting to change the “culture of poverty,” remove the “structural trap,” or “kin system as poverty trap” it can be achieved through harnessing the enabling factors of poverty reduction. Study argues that rather than focusing on “barriers” to poverty reduction, a country needs to identify and focus on its “potential” factors of poverty reduction. The dominant enabling factors for Bangladesh were agricultural development and remittance. The utilization of land and labor could bring a transformation in the rural economy of Bangladesh which was essential to poverty reduction.
Practical implications
The study shows that the individuals can escape poverty largely through their own effort where a proper policy support from the government is needed. The state needs to play the facilitating role rather than the instrumental in the case of poverty reduction.
Originality/value
The paper reveals instruments to poverty reduction where usual practice was to identify the barrier to development and to suggest the means of overcoming those barriers. It suggests how to look into the matter from other way round where instead of identifying the barrier attempt should be made to identify the enabling factors and to harness those enabling factors. The findings are based on the country-specific literatures but not generalized in the form as attempted here. The study shows a means of poverty reduction where country-specific strategy or home-grown model can be drawn out based on the identification of potential factors.
Purpose
India is a developing nation where the marginal benefit of Infrastructure Development is tremendous. This paper aims to analyze the relationship between infrastructure development and poverty reduction for India using the yearly data from 1991 to 2015.
Design/methodology/approach
We use the Principal Component analysis to construct indices for four major sub-sectors namely: Transport, Water and Sanitation, Telecommunications and Energy, falling under the broad Infrastructure sector and then using these sector wise indices, we construct an overall index which represents infrastructure development. We provide evidence on the link between infrastructure development and poverty reduction by using the Auto Regressive Distributed Lag (ARDL) bound testing approach.
Findings
The ARDL test results suggest that infrastructure development and economic growth reduce poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from infrastructure development to poverty reduction.
Research limitations/implications
The study confirms that India’s Infrastructure development plays a vital role in reducing poverty and calls for the Indian government to adopt economic policies which are aimed at developing and strengthing the Infrastructure levels and bringing in more investment in the Infrastructure sector in order to help the poor population by making them exposed to better opportunities of employment and income growth, thereby achieving the goal of poverty reduction.
Originality/value
This paper is a fresh and unique attempt of its kind to empirically investigate the causal relationship between infrastructure development and poverty reduction in India using modern econometric techniques.
Purpose
The purpose of this paper is to explore the perspectives of workers in one of the least developed economies (Cambodia) on the creation of new job and livelihood opportunities created by foreign firms or foreign investment.
Design/methodology/approach
Qualitative: randomly selected interviews of individuals.
Findings
Individuals working in international organizations find international business activities increase their livelihood options and therefore help to improve their lives.
Research limitations/implications
An exploratory approach using convenience sampling was taken which limits generalizing the results to a broader population.
Practical implications
The concepts explored can be used by individual firms when formulating their social responsibility programmes and the ethical implications of their business practices in emerging markets as well as by governments in creating public policies concerning poverty reduction.
Social implications
Presents and respects the views of lower income individuals working in the tourism industry whose voices are often overlooked when corporate social responsibility and public policies are designed.
Originality/value
Provides a perspective about poverty reduction of individuals from low-income backgrounds whose lives are directly impacted by international investment and trade.