Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance
Issue:
Volume 7, Issue 5, October 2018
Pages:
133-142
Received:
10 October 2018
Accepted:
31 October 2018
Published:
19 November 2018
Abstract: Public-Private Partnerships (PPPs), as an important mean to establish a standardized local government debt financing mechanism, relieve the pressure of local government debt, resolve the fund shortage of urbanization and promote supply-side structural reform, has increasingly become the main mode and source of China's infrastructure investment and financing. It has made an important contribution to the increase of supply scale, quality and efficiency in public services and infrastructures. But with the rapid promotion and widespread, local government provided illegal guarantees of fixed income and repurchase, or beared the loss of principal, issued Local Government Financing Vehicles(LGFVs) debts, and even disguised government purchasing services, which have make the PPPs alienated into a new financing vehicles. This paper defines the concept and scope of local government implicit debt, analyzes the tool characteristics of PPPs, the necessary and sufficient conditions for debt governance function of PPPs, and the formation mechanism, manifestation and evolution path of local government implicit debt. Then several countermeasures of implicit debt governance and risk prevention strategies under PPPs are put forward, including clarifying the relationship between the government and the market, promoting PPPs debt governance through win-win cooperation, improving PPPs laws and regulations, strengthening PPPs performance management, and improving PPPs risk sharing mechanism.
Abstract: Public-Private Partnerships (PPPs), as an important mean to establish a standardized local government debt financing mechanism, relieve the pressure of local government debt, resolve the fund shortage of urbanization and promote supply-side structural reform, has increasingly become the main mode and source of China's infrastructure investment and ...
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Role of Financial Institution on the Growth of Small and Medium Enterprises:-The Case in North Shewa Zone, Amhara Region, Ethiopia
Alebachew Goshim Azeref,
Yohanes Tefera Gelagil
Issue:
Volume 7, Issue 5, October 2018
Pages:
143-150
Received:
12 October 2018
Accepted:
29 October 2018
Published:
26 November 2018
Abstract: The objective of this study was to investigate the role of financial institutions on the growth of small and medium enterprises and to give recommendations based on the problems. Despite the tremendous increase in number of SMEs, little research exists that examines role of financial institutions; banks and microfinance institutions; on the growth of small and medium enterprises in developing countries, especially in Ethiopia specifically in north shewa zone of Amhara region. SMEs occupy a prominent position in the development agenda of many developing countries like us. Primary data were collected from 102SMEs in north shewa zone. Data from the respondents was tabulated for descriptive purpose and analyzed and translated into useful information using the statistical package for social sciences (SPSS). Therefore the study identifies size of loan, lower borrowing cost and saving account has positive relationship with growth of small and medium enterprise and the influence of these variables was significant. On the other hand there was positive relationship between duration of loan, simplicity of criteria, follow up & supervision and growth of SMEs. But the influence is relatively insignificance. The study recommends that the government and financial intuitions to make credit available and affordable to SMEs reducing the traditional barriers to SMEs financing, make financial intuitions products & services without unattainable criteria and at lower borrowing cost, setup mechanisms of training for SMEs before and after the loan. The study also recommends that make saving account easily accessible facilitated with technology for their growth.
Abstract: The objective of this study was to investigate the role of financial institutions on the growth of small and medium enterprises and to give recommendations based on the problems. Despite the tremendous increase in number of SMEs, little research exists that examines role of financial institutions; banks and microfinance institutions; on the growth ...
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Determinants of Rural Household Saving: The Case of North Shewa Zone, Amhara Regional State, Ethiopia
Alebachew Goshim Azeref,
Yohanes Tefera Gelagil
Issue:
Volume 7, Issue 5, October 2018
Pages:
151-156
Received:
19 October 2018
Accepted:
7 November 2018
Published:
28 November 2018
Abstract: Long-term economic growth requires capital investment – in infrastructure, education and technology, business expansion, and so forth – and the main domestic source of funds for capital investment is saving by household. In developing countries, economic fluctuations and climate risk lead to important income variations and leave the households vulnerable to severe hardship and challenges. Moreover, their social coverage is restricted and the credit and insurance markets are not well developed and civilized. The study aims at investigating the determinants of households’ saving in north shewa zone of amhara region. Data of 150 respondents are drawn through field survey in 2017/18 by adopting multistage random sampling technique. Questions are asked directly from head of household about their education level, family size, age, amount of savings per year in birr, assets, income etc. Sample contains information about rural households. Ordinary Least Square method is used for estimation. Ordinary Least Square method analysis presents determinants of households’ saving in the zone. Based on the result it is concluded that, total dependency rate, total income of household and family size significantly raise household savings. Education of household head, sex, household landholdings, marital status, and livestock size of the households reduce saving level of households. This study also supports existence of Life cycle hypothesis. Based on the results, study suggests that Government should provide free education materials and scholarships to the students at school, college and university levels. So that household can save more rather than spending on their education. Institutions that are involved in development projects need to increase their support to improve the business environment of the rural populations. Such decisions include improvement in the Transport and communication infrastructure. Also of importance is increased involvement of the government in services that support economic activities in the rural areas such as, electricity, water, extension services and marketing channels. Future research must be conducted which takes into account nonmonetary saving of rural households.
Abstract: Long-term economic growth requires capital investment – in infrastructure, education and technology, business expansion, and so forth – and the main domestic source of funds for capital investment is saving by household. In developing countries, economic fluctuations and climate risk lead to important income variations and leave the households vuln...
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