Search Results (40)

In Latin America, over 50% of the population has relied on loans from family members or friends, reflecting the importance of trust-based networks in response to financial exclusion. This study examines how distrust in the formal financial system influences the use of informal borrowing. Using data from 17 countries for the years 2014, 2017, and 2021, and applying a fixed-effects logistic regression model by country and time, we confirm that rising distrust significantly increases the likelihood of turning to loans from personal networks. This relationship intensifies in times of crisis. Beyond this, we find that macroeconomic variables such as GDP per capita and unemployment also significantly affect informal borrowing behavior. This research contributes to the literature by integrating institutional, economic, and social variables, highlighting the role of interpersonal trust as a form of social capital. It also advances the field of personal finance by revealing an everyday strategy of financial resilience. Finally, this study offers relevant implications for public policy, advocating for a more realistic and context-sensitive approach to financial inclusion, especially in regions where credit constraints in the formal sector have pushed households to seek more accessible and flexible alternatives. Full article

This study examines how entrepreneurial finance, entrepreneurial networking, and entrepreneurial culture contribute to sustainable business among culinary micro-enterprises in Bandung City, Indonesia. This study fills a gap in the literature by highlighting that micro-enterprises’ sustainability, from economic, social, and environmental aspects, is not always underpinned by formal institutional support. Using a qualitative approach and semi-structured interviews with 10 culinary micro-enterprise owners whose businesses have been able to survive across generations, this study found that business owners manage their finances adaptively, build trust-based social networks, and apply local cultural values to sustainable business practices. The findings show that trust and flexibility in informal funding play a crucial role in entrepreneurial finance, while challenging the view that access to formal financing is the main prerequisite for sustainability. Entrepreneurial culture proves to be a strategic internal resource in strengthening environmentally friendly practices. The originality of this study offers an alternative perspective that is more contextualized and grounded in understanding the sustainability strategies of micro-enterprises in developing countries. Full article

Considering refugees’ employment challenges in their host countries, they often need to create jobs by starting ventures and embracing self-employment. However, this requires financing. This study seeks to assess the roles of formal and informal financing in self-employment while also looking at the drivers of financing decisions and self-employment among refugees in an urban setting. Using the extension of the Blinder–Oaxaca decomposition pioneered by Fairlie, this study found informal financing to be significantly associated with an individual’s decision to be self-employed, while formal financing is not. Male refugees who access informal financing have a higher probability of embracing self-employment than refugee women and Kenyan nationals; this calls for actions that encourage forming community-based organizations that promote affirmative action and steer the use of informal finance. Full article

This study examines the mutual relationships among ESG performance, total factor productivity (TFP), and energy efficiency (EE) in a sample of Chinese A-share listed firms from 2010 to 2022. This study shows that ESG has a significant promotional effect on TFP. Reducing financing constraints and inefficient investment are among the mediating mechanisms, and the latter plays a greater role. Heterogeneity analyses suggest that state-owned enterprises (SOEs) and heavy-polluting enterprises (HPEs) should be consistently committed to ESG responsibility fulfillment. Formal environmental regulation (FER) can be complementary to ESG, but informal environmental regulation (IER) has the opposite effect. TFP was instead suppressed by the triple combined effect of ESG with these two. The results of the threshold effects of ESG and EE indicate that the positive impact on EE becomes more pronounced as ESG performance improves. However, ESG performance varies across subdimensions. As green technology research and development efficiency (GRDE) and green technology transformation efficiency (GTTE) improve, stronger ESG promotes EE. This threshold effect also exhibits heterogeneity with respect to the ownership structure. Moreover, there is bidirectional causality between EE and TFP, and EE has a stronger positive effect on TFP. These findings reveal the optimal paths and potential risks for moving toward sustainability for firms. Full article

The high-quality development of China’s fishery economy serves as its core objective, with robust financial support playing a pivotal role. This study employs provincial panel data spanning 2005 to 2020 and utilizes the entropy method to evaluate the level of high-quality development in China’s fishery economy across three dimensions: fundamental security, sustainability, and comprehensive efficiency. From the perspectives of formal and informal finance, it compares their support effects on different aspects of high-quality development in China’s fishery economy, while also exploring the mechanisms underlying these effects by considering factors such as industrial uncertainty and economic scale. The findings indicate that, overall, the support provided by both formal and informal finance for high-quality development in the fishery economy is insufficient. Further analysis reveals a significant threshold effect of fishery economic scale, with turning points at 108.44 billion CNY and 232.98 billion CNY for formal and informal finance, respectively. For higher-level indicators, such as sustainability and comprehensive efficiency, formal and informal financial systems demonstrate complementary roles, depending on the scale of the regional fishery economy. Furthermore, industrial uncertainty serves as a significant mediating factor only for formal financial support, with the levels of sustainability and comprehensive efficiency most affected. Full article

By exploring the positive elements of traditional business culture and combining them with modern enterprise management concepts, this paper aims to realize the sustainable development of enterprises and cultural heritage and innovation. In this context, this study empirically examines the impact and mechanisms of merchant guild culture (MGC) on corporate innovation, using A-share listed companies from 2010 to 2022 as a sample. The findings indicate that MGC positively influences contemporary corporate innovation through both external and internal channels. External channels include alleviating financing constraints and enhancing ESG performance, and internal influence channels such as improving integrity and emphasizing human capital. Additionally, social networks strengthen the relationship between MGC and corporate innovation. Furthermore, using the legal environment as a moderating variable has led to the discovery of a certain substitution relationship between formal and informal institutions. A heterogeneity analysis further shows that the effect of MGC on innovation is more pronounced in enterprises with low-risk preference and a foreign cultural impact. Full article

The sharing economy (SE) is a strongly contested idea, both conceptually and politically. This paper first explores multiple existing definitions, emphasizing the challenges in both conceptual and operational terms they usually entail. It is argued that most of the common definitions tend to exacerbate tensions between informativeness and veracity, resulting in the SE becoming a catch-all concept. Alternatively, it is often suggested to operationalize the concept by breaking it down among its main areas, such as consumption, knowledge, production, and finance. However, these kinds of classifications lack logical-formal consistency and substantive validity. The paper then addresses the political-normative debate by briefly presenting the three main existing perspectives on the SE: (i) as a more inclusive form of capitalism, (ii) as the advancement of the neoliberal agenda, and (iii) as a sort of emancipatory economy. The primary aim of this paper, however, is not to advocate for a singular viewpoint or scrutinize any particular author’s theory, but to examine three common errors that the emancipatory conception may easily fall into: (i) overemphasizing the role of communities in economic activity, (ii) attributing an inherent collaborative propensity to individuals, and (iii) understanding markets from an a-institutional and psychological standpoint. The conclusions suggest that to truly realize the emancipatory potential of the SE, the conception should distance itself from standard economic theory and adopt a more institutional approach akin to classical political economy. Full article

Access to finance is essential for fostering financial inclusion, improving household economic well-being, and stimulating economic growth. However, if not prudently managed, it can become a double-edged sword, increasing the risk of over-indebtedness, particularly among low-income households. This paper investigates the borrowing behavior of rural households in Egypt, exploring whether it is motivated by the optimization of intertemporal consumption or reflects deeper financial vulnerabilities. The study enhances our understanding of rural households’ financial behavior in Egypt and contributes to the literature by introducing perceived general self-efficacy as a key behavioral factor. The paper employs a quantitative methodology using a probit analysis of the Egypt Labor Market Panel Survey to explore the factors affecting the demand for formal loans, informal borrowing, and Rotating Saving and Credit Associations (RoSCAs). The results show that informal credit plays a dominant role in meeting rural households’ financial needs. A significant positive relationship between formal and informal credit suggests they are complementary. Elderly, married, less educated, and poorer individuals are more likely to seek both forms of credit, with employment stability being a key differentiator. Self-efficacy also has a significant positive effect. No significant regional differences are observed, except in the case of informal borrowing, with rural households in Upper Egypt showing less reliance, suggesting that social image may influence financial behavior in this region. The results suggest that demand for credit is driven by economic and financial vulnerability of rural households. The paper highlights key policy implications. First, to enhance participation in formal credit market, credit policies should offer more affordable, tailored credit relevant to starting a business rather than financing consumption, part of which is conspicuous. Second, the low self-efficacy among the rural poor suggests a need for policies that combine credit access with financial literacy and debt management support to prevent over-indebtedness. Full article

This paper tackles the critical issue of privacy in Natural Language Processing (NLP) systems that process sensitive data by introducing a novel framework combining differential privacy and adversarial training. The proposed solution ensures formal privacy guarantees by minimizing the influence of individual data points on the model’s behavior, effectively preventing information leakage. Simultaneously, adversarial training is applied to strengthen model robustness against privacy attacks by exposing it to adversarial examples during training. The framework is rigorously evaluated across various NLP tasks, demonstrating its capability to balance privacy preservation with high utility effectively. These results mark a significant advancement in developing secure and reliable NLP systems, particularly for applications requiring stringent data confidentiality, such as healthcare and finance. Full article

The rapid growth of the elderly population is a major global demographic and social issue. Unfortunately, there is a shortage of pension plans and social security programmes for this population in developing countries, which has severe consequences for their quality of life and well-being. In this article, we aim to better understand the pension systems in developing country contexts such as Ghana, Pakistan, and Myanmar by reviewing official government materials (for example, pension reports) and the published literature to suggest relevant policy recommendations. We observed several policy implementation gaps and inequities in pension schemes for older people, specifically for informal and private sector workers. Considering the size of formal versus informal economies and the level of development index of each country, we suggest a wide variety of options for pension policies, financing, designing cash benefits, and pension payments to cover all older citizens. This article addresses the unmet needs of the elderly and their wider economic sustainability to ensure social justice and resource utilisation. Governments in developing countries should embrace and establish unique, inclusive, and friendly policies encompassing the informal sector to warrant older adults’ functional and social well-being with dignity and honour. Full article

Sustainable development goals challenge the carbon lock-in dilemma of the industrial economy, and identifying the motivation and mechanism behind carbon unlocking has become an urgent priority. With its inclusive and precise advantages, digital finance (DF) provides a new impetus for the economy’s low-carbon transformation, while reasonable environmental regulation (ER) acts as an important guiding constraint. We focus on the carbon unlocking performance of DF under ER constraints. After constructing and calculating the industrial carbon unlocking efficiency (ICUE), we observe the trends of ICUE fluctuating positively, clustering towards the eastern region, and polarization. Subsequently, based on theoretical analyses, we explore the marginal and configuration effects of DF and ER in improving ICUE using panel data from 30 Chinese provinces between 2011 and 2021 and adopt a mixed research method with regression analysis (Tobit hierarchical regression and quantile regression for panel data (QRPD)) and dynamic fuzzy-set qualitative comparative analysis (fsQCA). The regression analysis results show that DF can notably enhance China’s provincial ICUE, with ER generally serving as a positive moderator; however, the unlocking potential of informal environmental regulations needs further exploration. As ICUE improves in a specific location or time, the positive contribution of DF to ICUE also increases, whereas the moderating effect of ER exhibits an optimal range and follows an inverted U-shape. The dynamic fsQCA results support the findings of the regression analysis and further emphasize that effective cooperation between DF and ER is crucial for high ICUE, while inadequate DF support and the absence of formal environmental regulations remain bottlenecks in industrial carbon lock-in. Moreover, configuration paths demonstrate clear path dependency in both time and space, indicating a prolonged unlocking endeavor. Full article

The policy of linking the increase and decrease in urban and rural construction land is a land policy that gradually forms and develops to solve the contradiction between “food and construction” under the background of urbanization in China. It is of great significance to the sustainable development of China’s social economy. In order to grasp the evolution of the policy of linking the increase and decrease in urban and rural construction land in China as a whole, this paper used the content analysis method to analyze the changes in the content of China’s urban−rural construction land increase/decrease linkage policy from different perspectives, such as the levels of policy promulgation and the types of policy promulgation. Firstly, 105 directly related policy texts were selected from a large amount of policy information and read in detail with this as a sample, and 11 keywords were extracted, which were “balance of occupation and compensation”, “clear property rights”, “reasonable planning”, “project area”, “turnover indicators”, “linkage procedure”, “voluntary principle”, “resettlement compensation”, “cultivated land protection”, “supervision and management”, and “capital finance and taxation”. Secondly, the policy text was coded to provide quantitative data on policy development. Finally, the trajectory of policy development was analyzed on the basis of the quantitative data on policy development. The results show that the existing policies were mostly issued in the form of notifications, management measures, implementation plans, working rules, and so on, involving the nature, principles, conditions, methods, procedures, capital finance and taxation, and circulation indicators of the linkage between the increase and decrease, but the policy effectiveness is low, and there is a lack of formal laws and regulations. Improving the legal status of the policy, changing the relationship between the government and the market, strengthening the protection of cultivated land, and reconstructing the income distribution mechanism will help to further improve the policy of linking the increase and decrease in urban and rural construction land. Full article

The lockdown restrictions during the COVID-19 pandemic led to increased interest in Fintech and digital finance solutions, and it gave people an incentive to join the formal financial sector by owning a formal account. People became interested in information about Fintech and digital finance solutions, and it led them to search the Internet to obtain information about Fintech, digital finance, and financial inclusion. In this study, we investigate whether interest in Internet information about Fintech and digital finance led to interest in Internet information about financial inclusion during the COVID-19 pandemic. Using global data that capture interest over time, we found that interest in information about Fintech was greater in developed countries while interest in information about financial inclusion was greater in developing countries during the pandemic. Interest in Fintech information was strongly correlated with interest in financial inclusion information during the pandemic. Interest in Fintech information had a significant positive effect on interest in financial inclusion information during the pandemic. There is a unidirectional causality between interest in Fintech information and interest in financial inclusion information during the pandemic. The implication of these findings is that interest in Fintech information is an important determinant of interest in financial inclusion information. Full article

Policies, Institutions and Regulation (PIR) aspects matter for different sectors’ growth and inclusive sustainable development, but there is little information in the literature on how to evaluate the effects of PIR on management options and outcomes or, on how positive results PIR changes can bring. In terms of stormwater management systems, or urban drainage, PIR is also a controversial and absent matter. Multidisciplinarity, several actors, countless formal and informal rules, and strong contextual path dependence make the subject complex and intricate. Considering the enabling environment, an alignment between policies, institutions and regulations is required to achieve good results and provide sustainable services. This study conducted a hybrid literature review of peer-reviewed papers in this field to provide an overview of how researchers have been studying PIR relations. The gaps show that the understanding of the PIR is fragile, as an important element for analyzing of results to be achieved, including SDG6, the financing and obtaining funds, guarantees and grants for the execution, delivery, operation and maintenance urban stormwater services and infrastructure. The contribution of this review is not only about what exists, but also mainly about what does not exist, since the void keeps waiting to be filled. Full article

This paper seeks to determine the best subjective probability to use to carry out expectation values of uncertain future cash flows with the smallest number of assumptions. This results in the unique distribution that guarantees no more information is present other than the stated assumptions. The result is a novel derivation of the well-known Black–Scholes equation without the need to introduce high-level mathematical machinery. This formalism fits nicely into introductory courses of finance, where the value of any financial instrument is given by the present value of uncertain future cash flows. Full article