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    485 research outputs found

    Impact of Interest Rate Cap Policies on the Lending Behavior of Microfinance Institutions: Evidence from Millions of Observations in the Credit Registry Database

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    In April 2017, the Cambodian central bank introduced an interest rate cap (IR cap) policy relating to lending by microfinance institutions (MFIs). There was no restriction on lending rates before the policy implementation and many of the MFIs was lending at a rate of more than 18%. Thus, there was some concern about the negative effects the IR cap policy may have on outreach efforts by MFIs. This paper explores the impact of the IR cap on MFIs, by accessing granular data from the credit registry database in Cambodia. We use 6,897,168 individual loans from all regulated financial institutions, including commercial banks, specialized banks, and microfinance institutions in the period from January 2016 to March 2019. We find that both the average size per loan and the probability of requiring collateral increased after the IR cap policy was introduced for MFIs, as small-sized loans and non-collateral loans are typically costly for microfinance institutions to extend. In addition, we found that the borrowers of small-sized loans before the IR cap were likely to be excluded from the formal financial market after the IR cap. Those findings suggest that the IR cap did have an impact on the outreach of financial systems.departmental bulletin pape

    Gender Income Gap among Cambodian Farmers: The Effects of Formal Credit Usage

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    The purpose of this article is to analyze the determinants of the gender income gap among farmers in Cambodia, with a focus on the role of formal credit usage. To decompose the gender income gap, this article applies the Blinder–Oaxaca decomposition technique to the data from the FinScope survey conducted at the end of 2015. First, our findings show that the gender income gap is mainly explained by the gender gap in education levels and farm size. Second, the use of formal credit may contribute to the gender income gap although there is no difference in the level of formal credit usage between male and female farmers. Male farmers with formal credit usage are associated with 8 percentage points higher earnings than female farmers. Further research into the factors to explain why this correlation is higher for male farmers is therefore crucial.departmental bulletin pape

    Understanding Financial Inclusion in Mongolia from a Micro Perspective: Is There a Gender Gap?

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    This paper investigates the determinants of financial inclusion in Mongolia – a country where persistent “reverse” gender gap in financial inclusion exists. When applying multivariate logistic models to nationally representative data, results show that women, and those who are more educated and older are more likely to be financially included. Women are four percentage points more likely than men to have access to formal finances; men are more likely to report barriers to finance and use informal finances. The Blinder-Oaxaca decomposition technique is employed to analyze the “reverse” gender disparity in financial inclusion. The results demonstrate that the disparity is largely due to coefficient effects that reflect behavioral or unobserved differences towards financial inclusion between men and women.departmental bulletin pape

    Perceived Home and Host Country Institutional Environment Pressures by Bilateral Development Cooperation Agency's Constituents

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    Neo-institutional theorists assert that institutional environments control organisational behaviour. They have extensively researched private multinational corporations (MNCs) but have scarcely touched public sector organisations. Prior studies have also tended to overlook the heterogeneity of constituents. The current study examines how four distinct groups of bilateral development cooperation agency (BDCA) staff (Headquarters [HQ] management, HQ non-management, overseas offices [OOs] management, and OOs non-management) perceive institutional environment pressures from home and host countries. For this, the author developed six hypotheses and then statistically tested them. Data were obtained through an online survey primarily using a five-point Likert scale (strongly disagree=1, disagree=2, neutral=3, agree=4, strongly agree=5). 131 valid responses were analysed by the Mann–Whitney U test. The results showed no statistically significant differences between the horizontally distant groups in perceived institutional environment pressures. Both the HQ and the OOs staff felt an identically powerful home country accountability pressure (Md=5 for both). Host country government and technical cooperation project counterpart expectation and demand pressures were modest for both the HQ (Md=3 and Md=3) and the OOs staff (Md=3.5 and Md=3). Meanwhile, significant differences were identified in perceived home country accountability pressure by the HQ management and the HQ non-management staff (p<.01) and in perceived host country government expectation and demand pressures by the OOs management and the OOs nonmanagement staff (p<.05). The OOs staff, both management and non-management, perceived a dual institutional environment pressure or what Kostova and Roth (2002) call 'institutional duality' (Md=4). The perceived level of institutional duality marginally differed between the OOs management and the OOs non-management staff (p=.11). These findings, seen through the lens of a neo-institutionalist perspective, suggest that OOs prioritise legitimacy to the home country’s accountability pressures over host countries’ requirements and demand pressures. Powerful institutional environment pressures perceived by management staff may even strengthen the OOs’ legitimacy-driven behaviour towards their home country.departmental bulletin pape

    Transport and Equity: Toward Inclusive Transport Development

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    SDGs 2030 target 11.2 aims at providing “access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons” by 2030. This vulnerable population also includes low-income people, especially in the context of developing countries. In developing countries’ cities, poverty is likely to be concentrated in the urban periphery far from the CBD (Central Business District) where jobs and other activities are concentrated. Thus, one of the goals of investment in public transport is to reduce these spatial and social inequalities by improving accessibility to jobs and other opportunities for vulnerable populations. This literature review aims to summarize recent empirical evidence on urban transport and equity in developing countries as well as to introduce the theoretical foundations of transport equity so that gaps for further research may be identified. Overall, the existing literature reveals that it is mainly lower-income segments that are likely to be disadvantaged as measured by potential accessibility. Possible factors underlying this transport inequality may include disadvantageous fare structures for lower-income populations and so on, but the mechanism behind this depends on its context in each city. These consequences may relate to the traditional appraisal methodologies for transport projects that highlight economic efficiency. To plan and design more inclusive transport projects, further studies including improving appraisal methodologies focusing more on equity aspects are necessary. In this regard, this literature review identifies research gaps including differing methodological points of view in the transport projects. Filling these gaps would also contribute to planning more inclusive transport projects from a practical point of view.articl

    The Importance of Farm Management Training for the African Rice Green Revolution: Experimental Evidence from Rainfed Lowland Areas in Mozambique

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    There remains an unsettled question regarding the achievement of the African rice Green Revolution (GR): Must a region start from the adoption of basic farm management practices (e.g., seed selection, nursery bed set-up, field leveling, bund construction, and transplanting), many of which were already common in Asia at the time of its GR? This study evaluated a randomized controlled trial (RCT) of training in such basic practices in remote rainfed lowland areas of Mozambique. The training employed two approaches: implementing farmer field schools in demonstration plots and promoting farmer-to-farmer social learning. The intention-to-treat (ITT) effect on the yield was 447–546 kg/ha (29%–36% of the control group average yield), with statistical significance at 7%–8%, regardless of the irregular rainfall conditions. The results indicate that the adoption of basic practices alone can improve rice yield even without modern inputs such as modern varieties and inorganic fertilizer, which are not easily available in local markets in remote areas or accessible to cash-constrained farmers. We also found complementarity among the basic practices, indicating that they must be adopted as a package for effective yield improvement.departmental bulletin pape

    明治期の工部大学校の経験が開発途上国のエンジニア教育に与える示唆

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    JICA緒方貞子平和開発研究所工部大学校は、殖産興業を進める明治政府により、各種インフラ事業を担う人材の育成を目的として設立された。1873年(明治6年)の開校以降、明治20年代半ば頃までに近代的な技術を習得した日本人技師が公共事業において主導的な役割を担うに至ったこと、また工部大学校自体も1882年(明治15年)ころから教師の日本人化が図られたことから、工部大学校によるエンジニア教育は一定の成功を収めたと評価される。その要因として、実学重視のカリキュラム、技術教育のみならず、全人格教育を重視し、公益マインドと高い倫理観を有するエンジニアの養成に成功したこと、技術教育の自立化を当初から掲げ、計画的に教師陣の日本人化を図ったことの3点を指摘した。また、工部大学校の経験が途上国に与える示唆として、理論と実地訓練のバランスが取れたカリキュラム、技術教育と全人格教育、官庁の現場での実地訓練をカリキュラムに含めることがエンジニア教育上、有効であることが示唆された。research repor

    Student Mobility to Japan in the Age of COVID-19: A Matter of Degree

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    JICA Ogata Sadako Research Institute for Peace and DevelopmentThe COVID-19 pandemic has left no corner of our lives untouched. This exploratory report examines the impact of the COVID-19 pandemic on international student mobility to Japan, illuminating recent mobility trends and possible driving factors behind these patterns. To contextualize international student mobility to Japan within broader mobility shifts, international and country-specific reports and statistics were analyzed. To investigate possible factors behind these trends, interviews with four university faculty and administrators responsible for international programming and seven international students enrolled in degree programs at Japanese universities during COVID-19 were conducted. The analysis finds that Japan’s emphasis on degree-seeking rather than short-term or exchange students has mitigated enrollment drops at Japanese universities in comparison to other popular study abroad destinations. Further, degreeseeking students prioritize safety and degree acquisition over in-country "study abroad experience.” The findings suggest that as universities endeavor to define the meaning and purpose of online initiatives in international programming, shifting student perceptions of the value of study abroad should not be overlooked. This has implications for the future role of online learning in international education, a central debate for universities devising internationalization strategies for the post-COVID world.research repor

    Interest Rate Cap Policy in Cambodia- Summary of Findings from a Survey and the Policy Implications-

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    An interest rate cap policy has been newly introduced to the Cambodian microfinance sector since April 2017. ■ This policy note summarizes the results of a survey, carried out jointly by JICA, CMA and CBC, that investigates the impact of the Cambodian interest rate cap policy. ■ Based on the results of the survey, it can be seen that the outreach of MFIs (Microfinance Institutions) declined due to the implementation of this policy. Specifically, MFIs reduced the availability of costly or high-risk profile loans, such as non-collateral and small-sized loans, which are more likely to be extended to lower-income households. ■ However, the impact is different from MFI to MFI, depending on each one’s original customer segments and operation. Especially large differences were found between deposit-taking MFIs and non-deposit-taking MFIs. ■ To mitigate the negative side effect of the policy, we suggest that the government and the development agencies should consider taking actions such as implementing supporting measures for financial inclusion, addressing regulatory arbitrage, and enhancing the transparency of the microfinance sector.articl

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