Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal
| Main Author: | |
|---|---|
| Language: | English |
| Published: |
The Ohio State University / OhioLINK
2017
|
| Subjects: | |
| Online Access: | http://rave.ohiolink.edu/etdc/view?acc_num=osu150054952679372 |
| id |
ndltd-OhioLink-oai-etd.ohiolink.edu-osu150054952679372 |
|---|---|
| record_format |
oai_dc |
| collection |
NDLTD |
| language |
English |
| sources |
NDLTD |
| topic |
Public Policy Formal and informal borrowing Household well-being Nepal |
| spellingShingle |
Public Policy Formal and informal borrowing Household well-being Nepal Kondratjeva, Olga Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| author |
Kondratjeva, Olga |
| author_facet |
Kondratjeva, Olga |
| author_sort |
Kondratjeva, Olga |
| title |
Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| title_short |
Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| title_full |
Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| title_fullStr |
Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| title_full_unstemmed |
Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal |
| title_sort |
exploring the connection of formal and informal borrowing and household well-being: the case of nepal |
| publisher |
The Ohio State University / OhioLINK |
| publishDate |
2017 |
| url |
http://rave.ohiolink.edu/etdc/view?acc_num=osu150054952679372 |
| work_keys_str_mv |
AT kondratjevaolga exploringtheconnectionofformalandinformalborrowingandhouseholdwellbeingthecaseofnepal |
| _version_ |
1719452800112394240 |
| spelling |
ndltd-OhioLink-oai-etd.ohiolink.edu-osu1500549526793722021-08-03T07:03:35Z Exploring the Connection of Formal and Informal Borrowing and Household Well-Being: The Case of Nepal Kondratjeva, Olga Public Policy Formal and informal borrowing Household well-being Nepal Low-income households in developing countries borrow extensively from formal and informal borrowing channels for various consumption and production needs. Formal financial institutions include commercial banks, rural development banks, non-governmental organizations, microfinance institutions, and other financial institutions. Informal borrowing channels include friends and family, private moneylenders, landlords, and informal cooperatives and associations. The overall objective of this dissertation is to explore the connection between borrowing and subsequent household well-being. Broadly, well-being describes the general state of household’s comfort and happiness, and can be described along material (e.g. financial well-being) and non-material dimensions (e.g. physical and psychological well-being). As part of the broader research question, I examine three specific research questions, in the context of Nepal.In the first essay, I examine whether borrowing – both formal and informal – positively impacts subsequent economic household well-being. Using panel data from the Nepal Living Standards Survey from 2003-2004 and 2010-2011, I estimate regressions using fixed effects ordinary least squares and two-stage least squares to account for selection into borrowing channels. The findings suggest that for the most part, the relationship between borrowing channels and investment and consumption outcomes is mediated through the borrowing purpose.In the second essay, I explore the financial decision making process related to borrowing decisions, and investigate how formal, semi-formal and informal borrowing is connected to the well-being of low-income households. The chapter focuses on the case of Nepal, which experienced a large-scale earthquake in April 2015. For this chapter, the primary data come from semi-structured interviews with 33 borrowers from two semi-rural towns in Nepal – one was severely affected by the earthquake and another was unaffected by the earthquake. I use content analysis techniques to analyze interview data. The findings provide in-depth insights into borrowing decisions from borrowers’ perspectives, highlighting the diversity of borrowers’ experiences and the importance of accounting for research context.In the third essay, I examine how several simulated macro-interventions in credit delivery can potentially influence the extent of formal borrowing, under certain conditions and assumptions. I develop an agent-based model (ABM) simulating the use of formal and informal loans by lower-income households in the context of a developing country. Then, I describe how simulated macro-interventions in credit delivery can potentially shape the extent of formal borrowing at the macro-level. The three simulated macro-interventions include the expansion of direct lending to the deprived sector by banks, improvements in borrower screening methods, and financial education programs. The results demonstrate that macro-interventions may differ in their effectiveness to increase formal borrowing, depending on underlying conditions and assumptions of the model.This dissertation addresses the overall research question from different perspectives, which helps to gain a more comprehensive understanding of the relationship between borrowing and well-being. The research has broader policy implications for poverty reduction and risk management, financial inclusion, and the design of interventions in credit delivery in the context of developing countries. It also contributes to a growing body of policy scholarship that seeks to inform government interventions through the use of mixed method research studies. 2017 English text The Ohio State University / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=osu150054952679372 http://rave.ohiolink.edu/etdc/view?acc_num=osu150054952679372 unrestricted This thesis or dissertation is protected by copyright: some rights reserved. It is licensed for use under a Creative Commons license. Specific terms and permissions are available from this document's record in the OhioLINK ETD Center. |