Are there Financial Benefits to Join RoSCAs? Empirical evidence from Equb in Ethiopia

Sammanfattning

Rotating Savings and Credit Associations (RoSCA) are informal financial institutions serving the financial service needs of many people in the developing countries. Though some researchers recommend the transformation of those institutions into formal ones to create economic efficiency, there is not much research on why members join those institutions and what benefits they derive from them. By taking an empirical example of Ethiopian equb and focusing on the financial feasibility of financial viability of becoming a member in RoSCA, this study assesses why members join RoSCAs. The survey conducted revealed that the financial motives outweigh all other motives in large equbs while the social motives are most important for members of small equbs. Most large and medium size equb members choose equbs than other possible alternatives because it is less expensive and involves very small transaction cost, if any. (C) 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Organising Committee of ICOAE 2012

Nyckelord

RoSCA; Equb; Ethiopia; Credit; Transaction cost

Publicerad i

Procedia economics and finance
2012, volym: 1, sidor: 229-238
Utgivare: Elsevier

Konferens

The International Conference on Applied Economics (ICOAE), Uppsala, Sweden, 2012

SLU författare

• Karantininis, Konstantinos

  • Institutionen för ekonomi, Sveriges lantbruksuniversitet
    
  • Københavns Universitet

• Feng, Li

  • Institutionen för ekonomi, Sveriges lantbruksuniversitet
    

Globala målen (SDG)

SDG8 Anständiga arbetsvillkor och ekonomisk tillväxt
SDG17 Genomförande och globalt partnerskap

UKÄ forskningsämne

Nationalekonomi

Publikationens identifierare

• DOI: https://doi.org/10.1016/S2212-5671(12)00027-5

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/100262