IOSR-JEF   Volume-1 ~ Issue-1

Abstract: Micro, small and medium sector enterprises have a vital role in in the economic growth of a developing nation like India. These enterprises play a catalyst role in the development of industrial and commercial activities. In the overall value chain of different industries these firms are placed in critical positions. It is, therefore, imperative to focus on the issues which impact the creation, survival and growth of the firms of the sector. One of such prime issues is the need of credits by these firms. This paper delineates the need of greater attention on the financing requirement of MSME sector. The firms need credit assistance at different stages of their life cycle. The unique characteristics of this type of firms imply that their credit needs deserve focused attention. Therefore, the banks and other financial institutions have the responsibility to offer such credit products and financing schemes which address the requirements of MSME sector. In meeting this financing requirement, problems may arise with respect to asset quality of the financial institutions. In order to promote the sector, there is a need to create an enabling environment which can ensure credit flow and at the same time address concerns regarding management of credit made to the sector.

Keywords - MSME, Credit Flow, Asset Quality.

Abstract: Access to financial markets is important for poor people. Like all economic agents, low-income households and microenterprise can benefit from credit, saving and insurance services. But financial markets, because of their special features, often serve poor people badly, since poor people often have insufficient traditional forms of collateral such as physical assets to offer. But the case of informal financial institutions is different as they have greater alternatives to accept as collaterals such as labor of the borrowers. Thus the poor generally excluded from the formal financial institutions and have to depend on informal sector. Microfinance is gathering impetus to become a significant strength in India. The Self Help Group model with bank lending to groups of poor women without collateral has become an accepted part of rural finance. In spite of being successful, there are still disparities in the program in its level of progress across different parts of the country, including the north east India (NER). The SHGs-BLP was concentrated among the southern states (SR) and its performance was not satisfactory among the NE states. The SR achieved higher amount of saving balance of SHGs with banks in comparison with NER. Similarly, the amount of loan disbursed to SHGs by banks was also higher in SR. Thus naturally one point come to mind is that, does amount of NPAs is lower and recovery performance is satisfactory in NER compare to SR. In this paper we analyzed the NPAs and recovery performance of SHGs in SR and NER of India. The researcher studied the same by taking four years data of NABARD. We found that although amount of saving balance of SHGs with banks and amount of loan disbursed to SHGs by banks was lower in NER in compare with SR, but the share of NPAs to total loans outstanding was higher and percentage of recovery to demand of total SHGs was lower in NER. In recent times there has been an improvement of situation of NPAs and recovery rate in NER. However this enhancement was not comparable with SR of India. Consequently, one point come to mind is that, does because of higher NPAs and lower recovery rate, SHGs-BLP had not achieved reasonable achievement in NER of India.

Keywords: Microfinance, Non-Performing Assets, Self Help Group, Recovery Rate

Abstract: This study empirically investigates the growth implication of trade liberalization in twelve West African (WA) countries using time series data for the period of 1970-2011. Relying on a Vector error correction model (VECM), our result indicates that trade orientation (trade policy variable) investment rate and exports shocks have significant positive impact on growth in 8 out of 12 WA economies. This suggests that it is possible to stimulate economic growth in some African countries through an outward-looking strategy of export expansion. We, thus, conclude that WA economies can vigorously pursue trade liberalization in order to enhance their growth performance. The caveat is that this would require a refocusing of domestic production capacity to commodity lines that overlap those of the trading partners, especially those of the OECD nations, so as to be able to garner the benefits derivable from liberal trade policy.

Key words: Trade Liberalization, Economic Growth, West Africa, VECM