A Study of Inclusive Financial System in China

Since 2006, the United Nation has strongly promoted the inclusive finance system to the world. The goal is to achieve that each of the developing countries should have an inclusive financial sustainability system, common to all levels of the population with providing appropriate financial products and services. Under this circumstance, The World Bank and G20 group further research the basic principles of inclusive finance to help poor and low-income people out of poverty, provide the construction framework, and measure the system quantities’ index. It comes out the short-term goal is to solve the gap between rich and poor, avoid the financial crisis, improve financial fairness, reduce financial exclusion and increase inclusive finance. Furthermore, the long-term goal is to increase the national income (GDP) and maxima the social welfare. However, inclusive finance is fundamentally conflicted. Both welfare and profit are incompatible in nature. The outcome of the conflict is financial inequity and financial exclusion. The low-income, small and medium-sized business owners and these disadvantaged groups are unable to get the completed financial services. Overall, finance inclusion or finance fairness in recent years has been hot topics for UN, IMF or G20. The leadership team has high pressure to provide the packaged solutions that integrates those missing population back into the financial system by 2020. Keywords: inclusive finance, finance exclusion, financial fairness, inequit

Digital financial inclusion and the urban–rural income gap in China: empirical research based on the Theil index

This study examined the effect of digital financial inclusion in reducing the urban–rural income inequality in China. Based on citylevel panel data, the results showed that digital financial inclusion narrowed the urban–rural income gap significantly by boosting economic growth. The results were robust when the core explained variables were replaced. Heterogeneity analysis showed that digital financial inclusion indicates regional differences in narrowing the urban–rural income gap. This study puts forward corresponding countermeasures for the development of digital financial inclusion and adds to the research on this very topical subjec

FINTECH FOR SDGS: DRIVING ECONOMIC DEVELOPMENT THROUGH FINANCIAL INNOVATION

This research delves into the pivotal role of Financial Technology (FinTech) in advancing the financial sector, sustainable development, and financial inclusion. Employing a descriptive-qualitative approach and the systematic literature review (SLR) method, the study investigates FinTech's interplay with Sustainable Development, Financial Inclusion, and Economic Development globally. A meticulous Scopus search utilizing keywords like "Fintech," "SDGs," "Financial Inclusion," and "Economic Development" ensures a thorough review of pertinent literature. The results underscore FinTech's substantial impact on Sustainable Development, Financial Inclusion, and Economic Development, acting as a crucial catalyst for financial inclusion and mediating sustainable growth through financial literacy. Furthermore, FinTech exhibits the potential to underpin sustainable economic growth, financial inclusion, and Economic Development by enhancing financial service accessibility, reducing poverty, and fostering gender equality. Challenges persist, particularly in the Pacific region, where issues of accessibility, awareness, literacy, and trust impede FinTech adoption. The study advocates for awareness campaigns, financial education, and infrastructure development to surmount these obstacles. In conclusion, while FinTech significantly influences financial inclusion and economic growth, its broader impact on Sustainable Development, Financial Inclusion, and Economic Development necessitates careful consideration. The research emphasizes the imperative for interdisciplinary collaboration, global cooperation, and vigilant strategies to address challenges and leverage opportunities arising from the rapid integration of digital financial services for inclusive and sustainable Economic Development.&nbsp

Determinants of Mobile Commerce Adoption in Developing Countries: Evidence from Rwanda

The rapid development of wireless technology and telecommunication networks has led to mobile devices playing an increasing role in people's lives. Businesses have recognised the value of mobile communication tools and trading platforms. A new type of technology-aided commerce – mobile commerce including mobile financial services – has gained importance in theory and practice. However, in the context of developing countries, the literature on the potential of mobile commerce and its driving factors is still limited. Along five empirical studies conducted in Rwanda, this research identifies the factors that drive the success of mobile commerce and financial services. It defines an appropriate infrastructure (power supply and network connectivity), a suitable regulatory setting, sufficient consumer awareness, and a proper distribution network as crucial for adopting mobile commerce and harvesting its potential. Thereupon, the research derives recommendations to Rwandan policymakers and practitioners in order to achieve economic growth, reduce poverty, and enhance national welfare Rwanda

Adopting new technologies during the crisis: An empirical analysis of agricultural sector

Research and development in agricultural sector are becoming a crucial issue, especially to answer to growing global market needs and, in general, for rural innovation development. The innovation process involves stakeholders of all levels and rural development requires both personal farmers' characteristics along with favourable socio-political and infrastructural environment. Many countries and governments have executed innovation projects for agricultural firms, involving a number of actors from the public and private sectors. However, the literature lacks of studies that investigate the identification of the main factors that determine the agricultural entrepreneurs' probability to adopt new technologies during a crisis context. Thus, through the adoption of the Extended Theory of Planned Behaviour, this study aims at filling this lack. More specifically, the exploratory empirical analysis focuses on a sample of 130 agricultural entrepreneurs operating in a rural developing Italian region, during the historical context of global pandemic crisis of COVID-19. The results provided several insights showing the factors that influence the adoption of technologies, such as the Attitude to Environmental-Economic Sustainability and the Planned Behavioural Control. An important role is also assumed by the past farmer's technological experience. The paper offers implications for entrepreneurs and public governmen

Finance, growth and social fairness:Evidence for Latin America and Bolivia

This PhD thesis explores the role of finance in promoting economic growth and social fairness. Our case studies concentrate on Latin America and the Caribbean, and on Bolivia, a developing region and a country for which the relationship between finance, growth, and social fairness turns out to be particularly important. Bolivia is considered as one of the poorest and most unequal countries in Latin America and the Caribbean. Poverty and inequality are not only deeply rooted in the country, but they are also among the most distinctive features of the region. In general, economic growth in Latin American countries has not met expectations, regardless of significant institutional reforms and an inherent potential to fare better. Consequently, the identification of factors that would promote economic growth and social fairness in Bolivia and the region becomes transcendental and necessary. At the same time, the study seeks to contribute to the scarce regional and single country-level research in this field. To pursue this goal, theoretical and empirical literature has been reviewed and original empirical evidence prepared. Moreover, the goal of this research is to conduct an integral investigation that does not rely only on macroeconomic evidence (at the regional and single country level) but also uses microeconomic evidence regarding the role of value chain financial mechanisms in a value chain case study. Throughout the thesis, different dimensions of finance such as financial depth, access to finance, and institutional diversification have been taken into account. Several of these aspects of finance have recently been studied in the empirical literature. Additionally, regarding the limited access to finance for certain agents in Bolivia – in particular, small-sized firms and rural and poor households – value chain finance has been considered as an important alternative for making financial services accessible. The results of this dissertation have implications for the design of financial and social policies for the Latin American and Caribbean region and for Bolivia

Empowering Smallholder Farmers in Markets: Changing agricultural marketing systems and innovative responses by producer organizations

Though some producer organizations have enabled developing country farmers to exploit new opportunities and/or cope with emerging challenges through developing and/or taking advantage of innovative mechanisms and institutions, there are many farmers who lack sustainable access to inputs and services as well as to remunerative output markets. This paper is intended to generate a better understanding of the conditions which make producer organizations capable vehicles by which farmers, especially small-scale farmers in developing countries, can reach markets in a dynamic and demanding trading environment, and respond to the needs of their clients and members. It aims at identifying lessons on the forms of organizations as well as the innovative mechanisms and institutions that producer organizations can adopt and/or help promote in response to challenges in the changing agricultural marketing systems, in particular, to strengthen the bargaining position of farmers.agricultural marketing systems; producer organizations; innovative rural finance

Financing for Gender Equality in the Context of SDGs

This paper identifies a series of macro-level tools to create a supportive environment and the resources to promote SDGs related to gender equality. A key argument is that financing for gender equality can be self-sustaining because of the feedback effects from gender equality to economy-wide well-being. Among the tools related to targeted government spending are demand-stimulating macroeconomic policies to promote full employment and public investment. Two types of public investment are explored. Physical infrastructure investment, such as spending on clean water, sanitation, and health clinics, can reduce women’s unpaid care burden. Social infrastructure investment, defined as investment in people’s capabilities, refers to the fundamental social, intellectual, and emotional skills and health of individuals— or level of human development—a country relies on for its economy to function. Both types have a public goods quality in that they generate positive spillover effects on economy-wide productivity. Financing for gender equality in these areas is more properly seen as an investment that yields an income stream in the future, as a result of the beneficial development and growth effects. As a result, both physical and social infrastructure spending have the ability to create fiscal space. Additional sources of financing for gender equality are discussed, including taxation of the financial sector. Monetary policy can also be harnessed to promote gender equality. A much wider range of policy tools are available to central banks than are now used. These include capital management techniques, asset-based reserve requirements, and loan guarantees in order to overcome women’s lack of legal title to assets. The review of monetary policy tools here also suggests that emphasis on low inflation via the policy interest rate is problematic on two counts. First, higher interest rates dampen aggregate demand and thus employment. Second, the policy interest rate failures to address the underlying causes of inflationary pressures in many countries. Those pressures are often best dealt with through targeted fiscal policies in education, health care, and investment in strategic sectors, such as agriculture and infrastructure. Government and central banks cannot adequately pursue these goals without changing their composition. The lens for identifying appropriate public investment projects and credit targets needs to be gendered and ethnically representative, underscoring the important role of affirmative action in private and public decision-making bodies

A discourse on the potential of crowdfunding and Islamic finance in the agricultural sector of East Java, Indonesia

Literature evidence on the transformation transpires agriculture sector in East Java for the last 5 to 10 years. The contribution of the agricultural sector towards East Java gross domestic product (GDP) in 2008 recorded at 16.55%, however, shrinks to 13.75% in 2015. This statistic shows the regressed contribution of the agriculture sector in comparison to other economic sectors. One common view that linked to shrinking in credit composition is due to the lack of credit accessibility for the sector. Given that, this paper attempts to propose a viable financing model to develop the agricultural sector in East Java known as Integrated Agricultural Land Crowdfunding Model (IALCM) using Islamic financing instruments through a crowdfunding platform. This model is expected to offer farmers in East Java to meet theirliquidity constraints and the Indonesian government to accelerate social entrepreneurship innovation with conceivable recommendations forthe development of agricultural sector in East Jav

Sustainability, Digital Transformation and Fintech: The New Challenges of the Banking Industry

In the current competitive scenario, the banking industry must contend with multiple challenges tied to regulations, legacy systems, disruptive models/technologies, new competitors, and a restive customer base, while simultaneously pursuing new strategies for sustainable growth. Banking institutions that can address these emerging challenges and opportunities to effectively balance long-term goals with short-term performance pressures could be aptly rewarded. This book comprises a selection of papers addressing some of these relevant issues concerning the current challenges and opportunities for international banking institutions. Papers in this collection focus on the digital transformation of the banking industry and its effect on sustainability, the emergence of new competitors such as FinTech companies, the role of mobile banking in the industry, the connections between sustainability and financial performance, and other general sustainability and corporate social responsibility (CSR) topics related to the banking industry. The book is a Special Issue of the MDPI journal Sustainability, which has been sponsored by the Santander Financial Institute (SANFI), a Spanish research and training institution created as a collaboration between Santander Bank and the University of Cantabria. SANFI works to identify, develop, support, and promote knowledge, study, talent, and innovation in the financial sector