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This paper estimates private sector credit cycles for most of the oil-importing and oil-exporting countries in the Middle East and North Africa. Credit cycles are the medium-term component in spectral analysis of real private sector credit growth. In addition, the paper estimates the credit cycles for several Western countries and Japan. The analysis finds substantial differences and rare similarities between credit cycles in the Middle East and North Africa and developed countries. Over 1964-2017, credit cycles in the Middle East and North Africa do not appear to be associated with real gross domestic product growth. They only explain a fraction of the growth in private sector credit, and they do not seem to be synchronized across oil exporters and oil importers.
Access to Finance --- Business Cycle --- Credit Cycle --- Finance and Development --- Finance and Financial Sector Development --- Private Finance --- Rural Finance
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The paper uses a detailed household survey to document precautionary wealth accumulation in Afghanistan, with wealth being significantly higher for households facing higher income uncertainty. Annual household expenditure on nondurable goods is also lower for these households. There is no significant difference in the wealth response to income uncertainty across high- and low-conflict provinces. However, the constituents of precautionary wealth vary drastically. While households in the low-conflict regions rely almost exclusively on livestock to iron out uncertainty, households in the high-conflict areas also build up a reserve of gold and silver. This shift in household portfolio suggests a more substantial decline in real returns of livestock relative to jewelry in high-conflict provinces.
Conflict --- Conflict and Development --- Finance and Financial Sector Development --- ICT Economics --- Jewelry --- Livestock --- Livestock and Animal Husbandry --- Macroeconomics and Economic Growth --- Mining and Extractive Industry(Non-Energy) --- Poverty Reduction --- Precautionary Wealth --- Primary Metals --- Uncertainty --- Urban Governance and Management --- Urban Housing --- Urban Housing and Land Settlements
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Households accumulate wealth as a reserve against unexpected contingencies. We employ a detailed household survey in Afghanistan to study how non-housing wealth accumulation of households varies with labor income uncertainty. We find that households facing higher income uncertainty accumulate significantly larger quantities of non-housing wealth. Exploiting variation in availability of banks and micro-finance institutions across provinces, we find lower wealth accumulation in provinces having better access to financial institutions.
Access to Finance --- Conflict and Development --- Finance and Development --- Finance and Financial Sector Development --- Financial Literacy --- Livestock --- Uncertainty
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