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Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets
Issue:
Volume 5, Issue 5, October 2016
Pages:
135-142
Received:
27 June 2016
Accepted:
5 July 2016
Published:
10 August 2016
Abstract: The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.
Abstract: The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-mak...
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Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania
Ali Othman Abbas,
Zhang Honghui
Issue:
Volume 5, Issue 5, October 2016
Pages:
143-148
Received:
1 September 2016
Published:
6 September 2016
Abstract: Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives.
Abstract: Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected ...
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A Test for the Cobb Douglas Production Function in Manufacturing Sector: The Case of Bangladesh
Shaiara Husain,
Md. Shahidul Islam
Issue:
Volume 5, Issue 5, October 2016
Pages:
149-154
Received:
16 August 2016
Accepted:
1 September 2016
Published:
21 September 2016
Abstract: The manufacturing sector has been a major driver of GDP growth in Bangladesh. The sector recorded an impressive average annual growth during last a couple of decades. This study is an attempt to test empirically the Cobb-Douglas production function for manufacturing sector of Bangladesh. Data of total value of output, total asset, total liabilities, number of permanent workers etc. of about six major types of industries including Garments, Textiles, Food & Food Processing, Leather & Leather Products, Electronics and Chemicals& Pharmaceuticals have been used. Researchers use total value of output as Y, total liabilities as K, and number of permanent workers (including officials managers, personal) as L. Study finds that coefficient for K and L are 0.49 and 0.51 respectively for entire manufacturing sector. In case of Garments, coefficient for K is 0.30 and L is 0.61 implying that labor is more productive than capital. The statement is also true for Textile sector and Leather & leather products. Capital is, on other hand, more productive than labor in Food & food processing industries, Electronics, Chemicals & Pharmaceuticals sectors. The coefficients are significant and do not suffer from MC and also not from Autocorrelation. To correct heteroscedasticity, WLS method (weighted Least Square) has been adopted. Findings reveal that Cobb-Douglas production function is applicable and exhibits increasing returns to scale in the context of manufacturing sector of Bangladesh.
Abstract: The manufacturing sector has been a major driver of GDP growth in Bangladesh. The sector recorded an impressive average annual growth during last a couple of decades. This study is an attempt to test empirically the Cobb-Douglas production function for manufacturing sector of Bangladesh. Data of total value of output, total asset, total liabilities...
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Investment Approval Process of ISLAMIC Banking - An Identical Investment Approval Process Model: A Case Study on Some Selected Islamic Banks in Bangladesh
Md. Shahinoor Rahman,
Md. Shafiul Islam,
Md. Morshadul Hasan Arif
Issue:
Volume 5, Issue 5, October 2016
Pages:
155-160
Received:
29 June 2016
Accepted:
22 July 2016
Published:
22 September 2016
Abstract: Bangladesh is a developing country having various religious people. The majority portion of people is Muslim in this country. Bangladesh is in a growing stage of Business and its development. Banking sector is one of the best source of this development in Business. For being one of the developing country as well as Muslim country, there are several variation in this banking systems. General commercial banks and some Islamic banks are doing business today across this country but their systems of banking is different. Researchers had a curiosity of finding out those differences in this paper researchers tried to find out the dissimilarities in investment approval process of Islamic Banks with investment approval process or credit or loan approval process of others commercial banks. Researchers also tried to review the actual and identical investment process of Islamic banks as well as differences with other commercial banks. Researchers used both direct and indirect method to collect data on this rigorous issue. Researcher took several Islamic Banks and worked on their investment process. Researchers found several dissimilarities with general commercial banks’ credit approval process. Finally researchers recommended a specific and complete model for investment approval process of Islamic Sariah Oriented banks.
Abstract: Bangladesh is a developing country having various religious people. The majority portion of people is Muslim in this country. Bangladesh is in a growing stage of Business and its development. Banking sector is one of the best source of this development in Business. For being one of the developing country as well as Muslim country, there are several...
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Determinants of Micro and Small Enterprises Growth: The Case of Durame Town, Kembata Tembaro Zone, Southern Nations and Nationalities and Peoples Region, Ethiopia, 2016
Dagmawit Alemayehu,
Yishak Gecho
Issue:
Volume 5, Issue 5, October 2016
Pages:
161-175
Received:
16 August 2016
Accepted:
31 August 2016
Published:
14 October 2016
Abstract: This study was conducted in Durame Town, KembataTemaro zone, Southern Ethiopia. The objective of the study is to find out factors that determine growth of Micro and Small Enterprises and to assess current status of Micro and Small Enterprises in terms of employment and capital growth. Out of 148 Micro and Small Enterprises in the study area, 100 Micro and Small Enterprises (MSEs) were selected as a sample using stratified and simple random sampling technique. They were stratified based on the sector they are operating. The data were analyzed using descriptive statistical tools including mean, percentage and standard deviation. The binary logit model was applied to identify determinants of MSEs growth. The study used employment and capital as growth indicators. Growth rate for the two indicators was computed by the change of natural logarithm of employment or capita over the life of enterprise. After calculating growth rate, Micro and Small Enterprises were grouped into two categories growing and non growing. Micro and Small Enterprises which had growth rate < 0 categorized into non growing and Micro and Small Enterprises which had growth rate ≥ 0.The finding of the study shows that out of the total sample 40% of Micro and Small Enterprises are growing and 60% of Micro and Small Enterprises are non growing in terms of employment. In terms of capital 69% of Micro and Small Enterprises are growing and 31% are non growing. The model result indicated that out of 19 explanatory variables, 10 variables were found to be significant in determining Micro and Small Enterprises growth. Factors found to be significant for employment growth were: entrepreneurship training, location of enterprise, motivation of owner, market linkage, access to finance, access to water. Factors found to be significantly influencing capital growth were: education level of owner, motivation of owner, number of owners, initial employment size, social network. Hence, government and non-government organizations that are concerned with the promotion and development of MSEs need to take these factors in to account to accomplish better result and increase the potential contribution of MSEs to the economic growth.
Abstract: This study was conducted in Durame Town, KembataTemaro zone, Southern Ethiopia. The objective of the study is to find out factors that determine growth of Micro and Small Enterprises and to assess current status of Micro and Small Enterprises in terms of employment and capital growth. Out of 148 Micro and Small Enterprises in the study area, 100 Mi...
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Strategy of Cluster Innovation in the Economic Transformation of Resource Cities of China: Experiences of Britain and Germany
Tao Meng,
Andrew M. Forman
Issue:
Volume 5, Issue 5, October 2016
Pages:
176-182
Received:
31 August 2016
Accepted:
18 September 2016
Published:
26 October 2016
Abstract: The economic transformation of resource cities is one universal economic difficulty. The resource cities in China are confronted with double difficulties at the same time-resource exhaustion and economic system transformation. The economic transformation and social stableness of such cities are the important issues in the development and reformation of China. Industrial clusters are the network organizations of cooperative innovation and the effective polices to improve the regional development. It is very necessary for Chinese cities to improve the innovation and cooperation among organizations by industrial clusters and formulate industrial policies in relevant industries to promote the improvement of regional innovation capability and economic transformation. The resource cities will be transformed from old industrial regions based on the natural resources and capital into innovative industrial cluster based on the regional innovation capability and competence edge of the industry. This paper analyzes the conception of cluster innovation and introduces some experiences of Britain and Germany, then researches how the Chinese resource cities apply the strategy of cluster innovation to strengthen the regional innovation capability.
Abstract: The economic transformation of resource cities is one universal economic difficulty. The resource cities in China are confronted with double difficulties at the same time-resource exhaustion and economic system transformation. The economic transformation and social stableness of such cities are the important issues in the development and reformatio...
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