Background: consumption loans negatively affect micro and macro living standards. Methods: two samples were randomly selected, one for loan takers and the other for non-loan takers (n=65) each. ELSI short form is used to measure living standards for each sample in order to compare them. Other variables are taken into consideration. Results: loan takers living standards are less than non-loan takers living standards.
Consumptions loans are negatively associated with living standards in Palestine. Conclusion: Consumption loans negatively affect living standards in Palestine; taking loans without suitable planning for monthly payments might harm loan takers by adding financial burden to them, banks and PMA should review loan payment-to-income ratio to the interest of clients.
Contents
Introduction
Measuring Living standards
Method
Description of target population and sampling design
Recruitment
Living standard measurement/ assessments
Explanatory variables
Variable definitions
Loan Takers variables
Non-loan takers variables
Data Analysis
Results
Discussion and findings
Recommendations
Acknowledgements
Authors’ Contributions
References
Appendix 1
Background: consumption loans negatively affect micro and macro living standards. Methods: two samples were randomly selected, one for loan takers and the other for non-loan takers (n=65) each. ELSI short form is used to measure living standards for each sample in order to compare them. Other variables are taken into consideration. Results: loan takers living standards are less than non-loan takers living standards. Consumptions loans are negatively associated with living standards in Palestine. Conclusion: Consumption loans negatively affect living standards in Palestine; taking loans without suitable planning for monthly payments might harm loan takers by adding financial burden to them, banks and PMA should review loan payment-to-income ratio to the interest of clients.
Introduction
Commonly known; the consumption loans increase the life quality of people by enable them to pay for unaffordable or expensive products or services. In the past people were saving their income to purchases a specific product or service, but today people can immediately collect the future cash flow by applying for loans. However, people will not have money for free; they have to pay interest as cost for fund. Spending what is necessary and desire, purchasing furniture and automobile, House financing and pay for a journey to turkey increase the standard of living. Well that was not affordable in the past. But since the banks were created, people now can do whatever they want. However, financial burden is added to the people who take loans due to mandatory and regular payments and the risk of default.
The last decade in Palestine witnessed a major change in Palestinian lives and economy; number of cars and mortgages was increased dramatically, malls and luxury life began to appear in public and people start to consume more and more. The figures of total consumption show that it has increased by 181.2% since 2008 and by 349.5% since 1997 (PCBS, Palestinian Central Bureau of Statistics, n.d.)(PCBS) see figure 1[1]. Increase in consumption would never take a place without doing some changes in Palestinian banking system. By the end of 2007 the Palestinian Monterey Authority (PMA) announced series of measures to reform the banking system. That policy was to encouraging individual to access soft and long-term loans(Riyahi & Samarah, 2014), but also encouraged bank to offer more loans and that would never happened unless PMA in 2007 approved directives to raise facilities to deposit ratio from 24% to 50%. Moreover the loans offer to people is of a consumer type that used to purchase imported products (Riyahi & Samarah, 2014)
Unfortunately, observer of the Palestinian public talk will notice that people are complaining of the current economic situation especially to the people whom are involved with loans. The truth is; people with middle and low income can buy expensive cars and their houses are full of luxury and necessary furniture on which they would never purchase without banks. But they are complaining that their liquidity cannot cover their daily life expenditure. People who took loans can’t afford the monthly payments to the bank any more taking into consideration that Palestinian economy is not doing well and the consumer prices are too high relative to the average income. On the other hand the legislative parties who are responsible for banks (i.e. PMA) allow people to pay half their income as monthly payment to the bank (PMA, 2015). Some say that this portion is unjustifiable and unfair to the people especially for the people whom are middle and low income. On the other hand, some would say that the concept of personal financing does not exist widely between the public, so it all about management culture. But also many blame the economy rather blaming the banks and PMA, Palestinian economy is not doing well the families expenditures already exceeded income (Muzhir, 2015)[2].
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Figure 1 “Source: Palestinian Central Bureau of Statistics - State of Palestine (PCBS)” (PCBS, Household Budget, 2011)
Upon our knowledge, there have been no literature reviews available that link directly between consumption loans and living standards In Palestine; however, a few studies have been published stating indirectly the correlation between standard of living and consumption loans. These studies focused mainly on the macro economic effects in some Living standards’ components in Palestinian community. Example of methods used to measure living standard on macro Level GBP/Capita, Human Development Index and Happy Planet Index (ROWLANDS, 2011)[3]. One of the studies that conducted in Palestine mentioned the socio economics effects of consumption loans in Palestine (Abu Rjailah & Srouji, 2013) says that expansion of consumption loans in Palestine contributed to Imitates western consumption culture. It’s also affects the economic growth more than commercial loans do.
Moreover, the study (Abu Rjailah & Srouji, 2013) explains that total loans were increased proportionally to the gross domestic’s product (GDP) but in limited proportion comparing with other developed and developing countries. Keeping in mind that GDP measure is one of the methods used to measure standards of living in macro level. At the same time the study demonstrates the relation between consumption loans and the GDP as a negative relationship because Palestine depends on import. On the other hand, it mentioned the relationship between the consumption loans and some social factors in Palestine. Two of these factors are marriage and divorce rates; the study stated that there is no relationship between consumption loans and marriage. However, there is an inverse correlation between consumption loans and number of divorce cases and the reason is that household now is able to provide family basis like furniture and durables by taking loans. It’s worth mentioning that there is no relationship between consumption loans and unemployment and poverty levels.
Another study (Zaideh & Dr. Faris, 2006) stated that consumption loans are used mainly to acquire home furniture, houses and cares. Hence, if these loans were used to purchase durable goods that are locally manufactured then increasing in consumption will increase gross domestic product (GDP), but if the goods were foreigners or imported from outside the country then increasing in consumption will decrease GDP. On the other hand, increasing loans might lead to increase in prices due to increasing demand in products and services.
“Loans designed for improving living standards”. That’s what the national bank[4] provides for its clients as a target group services according to (Muzhir, 2015) deputy general manager of TNB. He affirms that such loans would increase living standards for people. In his opinion when client purchase a car using loans, his living standards would definitely increase. Adding new goods or services for a person life which was not affordable in that past (before have it using credit) would increase living standards. However, we argued that would be true unless those payments for a car loan for example would stand against paying for other necessaries, also available liquidity for debt holders or loan takers would be decrease due to payments. We searched the internet looking for loans for improving living standards; we find that some banks around the world already providing that kind of loans. One of these banks is Pro Credit bank (Bank, 2015). They provide two products loan under their loans-for-improving-living standards which are housing loans and house improving loan. AlQuds[5] bank also affirms that consumption loans increase living standards. “Loans increase living standards, but the problem is with individuals whom are not aware of financial or personal managements” (Sbaih, 2016).
According to (Beck, Asli, & Levine, 2004)increasing credit is bad indicator for an economy and might lead to economic crash; increasing in credit of consumption type lead to increase in liability without changing income level. However, the expansion of investment loans might contribute in making a bank crash but its effects is less than consumption loans.
However, our current study is not focusing on macro economical indexes. Rather, it aims to track the effect of consumptions loans on micro living standard. Upon our knowledge few studies found regarding this subject and they all stating that there are a negative relationship between loans and living standards, one of the studies that stating the relationship between living standards and credit was published in 2011 (Gibbons, Vaid, & Gradiner, 2011) said “Many lower income households struggle to make ends meet and are frequently faced with a choice of either using consumer credit or ‘going without’, both of which can have negative welfare implications where living standards are reduced for long periods of time”. The study used the methodology of the Minimum Income Standard (MIS) provides a measure of what members of the public, informed where relevant by expert knowledge, think should go into a budget in order to achieve a minimum socially acceptable standard of living.
Another study (Chambers, 1992) that conducted on student loans says that debt payments are not the largest factor in their lower income, but the payments will a large effect on their actual standard of living than payments of those with much higher income. Another journal report published USA Today website (Meyers, 2013) stating that massive student loan could threaten the standards living for this generation and harm the country’s economic competitiveness.
Measuring Living standards
Some books uses popular part of measuring of living standards which are income and consumption but a new way found to measure living standards has become the most widely used marketing research tool in Southern Africa (SAARF, 2012). It divides the population into 10 LSM groups, 10 (highest) to 1 (lowest). This measure called LSM (Living standers measures) used first by SAARF[6]. According to official website of SAARF they said that “SAARF was awarded the prestigious AAA "Media Innovator of the Year" award in 1993 for its contribution in helping marketers, advertising agencies and media owners define their target markets more precisely using the SAARF LSM groupings”. In order to measure LS using SAARF model we need to ask the sample a specific questions about product or services they uses in their houses and item. However, each item is giving a weight then compared to 1 to 10 scales. LSMs are calculated based on ownership of household assets and a few other requirements.
Another way to measure living standers is ELSISF[7]. Economic standard of living refers to the material aspect of wellbeing that is reflected in a person’s consumption and personal possessions – their household durables, clothing, recreations, access to medical services, and so on (Jersen, Spittal, & Krishnan, 2005)This study depends on several factors for measuring LS Ownership restrictions, social participation restrictions & economising (i.e. Financial hardship) it’s also taking into consideration the “self rating” of Living Standards .Our study will use the ELSI short Form (ELSISF) for its simplicity. To see how the scale is used and how to give scores please refer to (Appendix 1- A)[8].
Method
The expected study duration is from October to December 2015. The study based on collection of primary and secondary data. The study will take a place in Ramallah. As of primary data people will be divided into two groups Loan takers and Non-loan takers (as two equal different samples S1 & S2). But the two different questionnaires will be spread to three target groups as follows:
a. TG1 (Target Group 1), which are the people from public sector who have a regular monthly salary. ( usually their salary is used as a collateral for bank to take loans)
b. TG2 (Target Group 2), which are the people from the Private sector who have a regular monthly salary.
c. TG3 (Target Group 3), which are the people form public community whom might be employed or not but they don’t receive regular salary so they cannot use their income as collateral for bank. (see the flow chart below)
Mentioning that all targeted groups might be loan takers or non-loan takers. TG3 might take loans by using others salary as collateral or might be any kind of collateral the bank can accept.
As of secondary data Palestinian Central Bureau of Statistics - State of Palestine (PCBS) will be used in addition to Palestinian Monetary Authority (PMA) official statistics in analysing the published figures and compare them with outcomes of the primary data collection. Interviews with some policy makers and bankers will be used as references.
Description of target population and sampling design
We conducted a selected sample in regarding to sample type; Loan Takers (S1) and Non-Loan Takers (S2). Both were equal sample (n=65). The reason stands behind use selected data rather than randomly, is that because this study is not intended to describe number of loans and non-loans taker in Palestine, description on such statistics are already available in Palestinian Central Bureau of Statistics - State of Palestine (PCBS). However, inside each sample S1 and S2 all data were randomly distributed as of TG1, TG2 and TG3. As mentioned above all data are were taken in Ramallah city, we see that Ramallah contains a population that can express all west bank because most residence of Ramallah city are mixture that comes from all over west bank cities and Ramallah considered to be the economical capital of Palestine and the centre of business.
Recruitment
Data were collected using 2 questionnaires (see Appendix 3). Questionnaire 1 was assigned for S1 (Loan takers), while questionnaire 2 was assigned for S2 (Non-loan takers). Both questionnaires S1 and S2 have two commons questions parts: General Questions part and ELSISF for measuring living standards.
General questions are asking for martial statues, number of family members on which participant might or might not financially participate in it, total household income and total household expenditures not include loan payments. All questions are asked in multiple choice forms. Income and expenditure were come in ranges expressing eight income and expenditure levels.
As of ELSISF for measuring living standards as listed above it contains several questions that will be describe in detail in variable measurements. However, there are specific questions designed for each questionnaire. For Loan Takers (S1) they are asked for loan monthly payment, purpose for the loan and satisfaction level for taking that loan. While, on the other hand, non-loan takers (S2) are asked for if they are intended for taking that loan in addition to expected monthly payment if they are willing to.
Living standard measurement/ assessments
Using ELSISF for measuring living standards rather than ELSI Direct measurement is very important to our study due to its simplicity and timeliness. It’s true that Economic Living Standard Index used by New Zealand but it can be applied in most countries. ELSI direct of long form (Jensen, Spittal, Crichton, Sathiyandra, & Krishnan, 2002) measures: 1 . Ownership restrictions : Often people fail to own something they want because they cannot afford it. In contrast, it is an indicator of high living standards to have most of the things that one wants , 2. Social participation restrictions: A second important indicator of living standards is a restriction in the social activities that a person wanted to undertake, but could not because they couldn’t afford to. In contrast, it is an indicator of high living standards to be free of such a restriction , 3. Economising : When people are in a position of financial hardship they will often reduce their spending on items. In contrast, people with high living standards will generally be free from a need to economise , 4. Serious financial problems : another indicator of living standards is the extent to which a household has recently faced severe financial problems and 5. Self-ratings: Self-ratings give a person’s own perceptions and assessments. (See figure 2)[9]
ELSISF (short form) make it easier for participant to fill up the questionnaires. The short form measure uses only four components of the ELSI which are ownership restriction, social participation, economisation and self-rating living standards. However, the chosen questions in ELSI short form are designed for Material Living standards. “Economic standard of living refers to the material aspect of wellbeing that is reflected in a person’s consumption and personal possessions – their household durables, clothing, recreations, access to medical services, and so on” (Jersen, Spittal, & Krishnan, 2005)
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Figure 2
. Some critics (Muzhir, 2015) claim that ELSI short from cannot be applied in Palestine for two reasons, first the living slandered of Palestine is different from those whom in New Zealand. Second, ELSI short form does not included durable goods like Microwaves or cars which on the other hand could increase living standards. However, our respond to critics, ELSI short measures precisely material living standards by asking for financial ability to acquire some selected products or services that in average can represent what household needs. We have compared all questions listed in ELSI short form and study if they are applicable to Palestinian society and it works.
Each question in ELSI questionnaire is given a score, and by calculating the summation of all the scores for each participant you will gave a total score. However, total score is subtracted by ten to give a score ranges between 0 and 31. General equation of ELSI short form gives each part of the ELSI a specific score. See equation 1
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Equation 1[10]
For our study purpose we only need the total score of ELSI short form without dividing it into parts of Economization, social participation and self rating.
The next step of ELSI short form calculation is assigning each result for each participant into a range of living standards level ranges between level 1 ( the worst living standards) to level 7 ( the best living standard) see the table 1 below[11]. For more details about each level see appendix (1-B)
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Table 1 [12]
Explanatory variables
The main explanatory data were Total household expenditures and income. The difference between them is called residual income or saving. Another explanatory variable is called the ratio of total loan monthly payment to total income. According to PMA announcement this ratio must be < 50% as mentioned in the introduction; the study aims to study if that proportion is fair to the loan takers.
Variable definitions
For combined data, which is the data that is common between loan and non-loan taker, we define each variable as follows:
- Statues ( dependent variable) : which defines if the participant is loan or non loan-taker ( 0= non- loan taker, 1= loan taker)
- Marital status: which is defined as ( 1= single , 2= engaged, 3= married , 4 =widower , 5= divorced )
- Occupation: ( 1= public sector employee, 2= private sector employee , 3= NGOs employee, 4= private business and 5= unemployment)
- To measure income and expenditure levels we used the same range list as follow in the table 2 below
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Table 2
Income and expenditure are given in range or scale in order to make it easy for a participant to estimate his or her monthly income and cost. While in calculation the saving or residual income variable, we were more conservative by applying the higher income and the highest expenses into a specific range[13].
- Living slandered score/ level ( dependent Variable) : is assigned to each participant in levels from 1 to 7 see table (1) in page ( xx)
Other variables were designed especially for each sample S1 and S2 (Loan takers and non-loan takers) were defined as follows:
Loan Takers variables
- Purpose for taking the loan: ( 1= land purchase, 2= automobile purchasing , 3= housing, 4 = basics purchase, 5= personal loan, 6= marriage loan, 7= educational loan, 8= investment or business financing, 9= others )[14]
- Total monthly payment which were nominal amount in Israeli shekel currency NIS[15]
- If participant is satisfied of taking loan ( 0= No, 1 = yes )
- Satisfaction level of taking the loan ( 0= no satisfaction, 1= very low satisfaction, 2= low satisfaction, 3= neutral satisfaction, 5= high satisfaction, 5= very high satisfaction)
- If a participant is willing to take another loan ( 0= no, 1 = yes )
- If a participant feeling a financial burden due taking loan ( 0=no, 1= yes )
Non-loan takers variables
- If a participant is willing to take a future loan : ( 0= no, 1= yes)
- Expected monthly payment in NIS the participant is willing to pay if he answers yes.
- If the answer was no, the reason stands behind why the participant is not willing to take a loan ( 1= inability for commitment a monthly payment, 2= legal or any kind of barrier to take loans, 3= low income, 4= no need for a loan, 5= others[16] )
Data Analysis
The data set was analyzed with SPSS 20 (Statistical Package for the Social Science). Microsoft excel was used to design charts and calculation of ELSI score using summation function and value look up function to assign for standard of living ( =Vlookup (score summation, table array, column index, approximate match). To analysis data in SPSS we used data description to describe all variables using the combined sheets and each sample alone (S1 and S2). Cross tables using qui square is added to compare dependent variable to independent set. Correlation is not required upon our professor instruction but it might be stated as an appendix. However, regression is used as liner and binary logistic regression were needed.
Results
For combined samples (Loan taker and Non-Loan Takers), total sample is 130. No missing value for each variable. Loan taker and non loan takers were equal in count (n= 65 each). Most of sample for both status were married (71.5 %). most of them are private sectors employee about (63.1%). The majority of the sample are having a surplus/ saving of their income about (54.6%) but most of the rest are having equal income to expenders (31.5%). Most of sample is focused in 4 to 6 living standards (fairly comfortable to good) see table 3 and appendix 2-A
Cross tabulation and qui square. For the first look at the cross tabulation result that compares each living standard to respective statues you will notice a difference across statues. In simple words it seems that loan takers are suffer more than non-loan takers in fact living standards of non-loan takers is better than loan taker.
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Table 3
Beginning with the worst living standards which is level 1 ( Severed Hardship) people who are involved with loans are 60% suffer of severe hardship comparing to 40% only of non-loan takers. Moving to the less bad living standards (level 2) which labelled as (Significant Hardship) you will find that 28.6% for non- loan taker are facing significant hardships and 71.4% for loan taker, still the case in favour for the non-loan takers. Now for the thirds level of living standards which is still one of the bad living standards level labelled as (Some Hardship), non-loan takers are 23.1% who suffer some hardship in their lives in comparing to loan taker 76.9% of loan takers.
Now moving to the good living standards and starting with less good living standards which is level 4 labelled as (Fairly comfortable). At this level you will notice that loan taker and non-loan takers are a little bit close to each others, 42.9% for non-loan taker and 57.1% for loan takers. So they both have a lack of 6% of basis, have 31% of comforts/ luxuries, have 12% of financial problems and 14% of accommodation problems and lack 3% of the child basics. In our opinion this level is considered as moderate level which can be affected by another factor (i.e. Income level) as you will see after.
Moving to better level as of level 5 which is labeled as (comfortable), again you will find that non-loan taker are better in regarding of their living standards 52.9% but the loan takers are 47.1 %. Also the 6th and the 7th levels are showing the same for non-loan takers 49.4%, 81.8% and 40.6%, 18.3% for loan taker respectively.( See Appendix 2-B and figure 3).
Qui square value shows 11.524 with significant value of .059 which means across all values non-loan takers will have a value of living standards better than loan takers. (See table 4)
Table 4
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a. 4 cells (28.6%) have expected count less than 5. The minimum expected count is 2.50.
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Table 5
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**. Correlation is significant at the 0.01 level (2-tailed).
However, bivairate correlation shows that there negative correlation between consumption loans and living standards in Palestine -0.276 at significant of .001 which consider as a week correlation (see table 5 below).
The linier regression also shows a significant negative relationship between consumption loans and living standards with beta B of -.785 and significant at .002. (See table 6).
Table 6
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a. Dependent Variable: Living Standard Level
Analysing other factors
Now after we figured out the relationship between living standards and consumption loans in Palestine, we need to analyse other factors that might play role and affect living standards within consumption loans in Palestine.
1. Statues (Loan taker or not) VS residual income (Income – Expenders)
Within statues, we can notice that loan taker is suffering of deficit more than non-loan takers. As you can see form (table 7) 4.6% are suffering deficit of non-loan takers, while 23.1% in loan takers are having monthly deficits on their income. Also non-loan taker having a good indicator of equal monthly income with monthly expanders as of 38.5 % of non-loan taker and 24.6% of loan takers while the surplus or saving was in favor of non-loan takers also as you can see 56.9% for non-loan takers and 52.3% for loan takers.
Table 7
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By checking the correlation and regression between status and residual income, we can say that loans affect negatively residual income or saving because the correlation recorded -.160 with significant of .069 while the linier regression beta coefficient was about -.111 with a significant of .069 (See table 8)
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Table 8
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a. Dependent Variable: Status ( Loan taker or not)
2. Number of Family member VS living standards
Figure 4 show that increasing of number of family member will decrease the living standards. Linier regression between the two variables shows beta coefficient of -1.31 with .319 significant levels. However, it was not possible in this study to interfere the status variable in order to study if loan taking affected by family number will affect living standards. (See table 9)
Figure 3
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Table 9
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a. Dependent Variable: Number of Family member
3. Loan takers Debt to monthly income ratio VS Living Standard
This variable comparison is for loan takers only. Correlations is negative -.018 between total debt payment as a percentage of income and living standards which means it’s better to lower this ratio as much as possible. (See table 10).
Table 10
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Also linier regression shows that the relation is negative with beta coefficient B of -.034 with .674 significant levels. (See table 11). It worth mentioning that most of sample data are not exceeding 50% of monthly payments to monthly income ratio which is comply with PMA announce. The fact that most of loan takers are not paying more than 50% and a big portion (29.2%) not paying more than 25% of monthly payments to monthly income. however, few have exceeding 100% which we suggest it might be for two reason; either because participant where not entering their monthly income as the questionnaire requires, or because participant have another source of income but could not declared to our questionnaire for some reason. (See table 12 and figure 5)
Table 11
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Table 12
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Figure 4
4. Loan satisfaction level with living standards
Most of loan taker sample (66.2%) is not satisfied for taking the loan (see figure 6). loan satisfaction level for the sample was mostly neutral and highly satisfied (see table 13). However, a big portion not satisfied at all about 22.5%.
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Figure 5
Table 13
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We suggest that there is a relation between loan satisfaction and living standards for loan takers. Table 14 shows that there is a positive correlation between loan satisfaction level and living standards of .281 at .025 significant levels.
Table 14
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Most loan takers are suffering of financial burden due taking loans.
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5. Non-Loan takers variable description and some cross tabulation
Most of non-loan taker sample are agreed not to take loan in the future (see figure 7)
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Figure 6
However, the reasons stand behind making them disagree of taking loans in the future was varied but mostly because they don’t need loan and religious reasons (i.e. Haram) see table 15 below
Table 15
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Cross tabulation- qui square shows that most of which are not willing to take a loan in the future are having better living standards (see table 16)
Table 16
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Discussion and findings
In line with results above, living standards for non-loan takers is higher than loan takers. The living standard mean for non-loan taker is 5 and 4 for loan takers. So consumption loans in Palestine have a negative relation with living standards. There is a negative relationship between consumptions loan and residual income. It’s worth mentioning that number of family member affects negatively living standards in Palestine. Results shows that the less the ratio of monthly payment to income the higher living standards. Most of loan takers are not satisfied with taking loans. But when talking about satisfaction level, there is a positive relationship between loan satisfaction level and living standards. Most loan takers are suffering of financial burden due taking loans, however, talking about non-loan most of non-loan taker sample are agreed not to take loan in the future. But there is a negative relationship between standards of ling and wiliness for taking loan. Finally, by reviewing participant comments; most of them agreed that consumptions loans negatively associated with living standards.
Recommendations
We recommend that people should be more conservative before taking loans by
- Doing suitable budgeting planning on which their payments should not be exhausting.
- Keeping their payment-to-income ratio less than 25% as much as possible but not exceeding half of income (50%) in order to save liquidity for the rest of the month.
- People take loans only if needed. But also they should provide all necessities before taking loans.
We also recommend banks and debt agencies to take these items into considerations before taking loans:
- Legislative parties that responsible for banks in Palestine (PMA) or debt agencies should approve for monthly payments that is suitable to living standard for clients. However. We suggest that 50% of payment-to-income ratio should be reviewed for client interests.
- Banks should develop integral system that measures each client living standards (not only income) before approve for loans.
- Bank should inform each client individually for all kind of risks of taking loans.
Acknowledgements
We would like to express our special thanks of gratitude to our teacher Dr. Salwa Massad[17] for giving us the opportunity to create. This achievement is all refers to her by choosing the topic (Consumptions loans effects on living standards in Palestine) and giving all kinds of support and knowledge to us.
Secondly, we would like to thank Birziet University for its generous support for students.
Authors’ Contributions
1. Qais Sbaih[18], ID 1145338
- Team Leader
- Introduction Writing
- 5 literature reviews
- ELSI method application
- Data Collection
- Data analysis using SPSS
- Power point slide designing and presentation
2. Duaa Abu Hamdeh[19], ID 1145467
- Introduction Writing
- 4 literature reviews
- Data collection
- Writing results and recommendation
- Power point slide designing and presentation
3. Mohammad Salah[20], ID 1145411
- Introduction Writing
- 2 Literature Reviews
- Data Collection
- Recommendation and findings write
- Power point slide designing and presentation
- Data analysis using Excel spread sheets
4. Abeer Jabr[21], ID 1145087
- Introduction writing
- 3 literature reviews
- Body writing
- Data Collection
- Power point slide designing and presentation
- Recommendation and findings write
References
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Beck, T., Asli, D.-K., & Levine, R. (2004). Finance, Inequality, and Poverty: Cross-Country Evidenc.
Chambers, L. D. (1992). The Burdens of Educational Loans: The Impacts of. University of Michigan Law Schoo.
Gibbons, D., Vaid, L., & Gradiner, L. (2011). Can consumer credit be affordable to households on low income. London: Centre for Responsible Credit and Friends Provident Foundation.
Jensen, J., Spittal, M., Crichton, S., Sathiyandra, S., & Krishnan, V. (2002). DIRECT MEASUREMENT OF LIVING STANDARDS:THE NEW ZEALAND ELSI SCALE. Wellington: The Ministry of Social Development Te Manatū Whakahiato Ora. Retrieved from www.msd.govt.nz
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ROWLANDS, N. (2011, January 11). 4 WAYS TO MEASURE YOUR STANDARD OF LIVING. Retrieved from Matador Network.
SAARF, S. A. (2012). Living Standards Measure LSM. Retrieved from SAARF: http://www.saarf.co.za/LSM/lsms.asp
Sbaih, S. (2016, Jan 03). Do Loans decreas living standerds. (Q. Sabih, Interviewer, & Q. Sabih, Translator) Ramallah , west bank, Palestine .
Zaideh, D. M., & Dr. Faris, A. m. (2006). Default Credit Facilties in the Palestinian Banking System. master reseach.
Appendix 1
1. A (Interpretation of ELSISF scores)
illustration not visible in this excerpt[22]
1-B Calibration results of ELSISF
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Appendix 2 (SPSS tables results)
2-A descriptive of combined data analysis
Status ( Loan taker or not)
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Marital Status
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Occupation
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Number of Family member
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monthly income
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monthly Expenditure
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Living Standard Level
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2-B Living Standard Level * Status (Loan taker or not) Cross tabulation
Living Standard Level * Status ( Loan taker or not) Cross tabulation
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Appendix 3
3_A Questionnaire 1 (for Loan Takers S1)
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6. * research4birzeit@gmail.com
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3_B Questionnaire 1 (for Non-Loan Takers S2)
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7. * research4birzeit@gmail.com
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[...]
[1] This chart is inserted based in figured published by Palestinian Central Bureau of Statistics - State of Palestine (PCBS).
[2] “Interview with Marwan Muzhir the National Bank “Personal Interview by Qais Sbaih.
[3] 4 WAYS TO MEASURE YOUR STANDARD OF LIVING ( web site )
[4] The National Bank, (TNB). Palestine
[5] Al Quds Bank, Palestine
[6] South African Audience Research Foundation (SAARF) is a non-profit organization which publishes media audience and product/brand research on traditional media
[7] ELSISF: Economic Living Standard Index Short Form
[8] We used the same procedures and items that used by original issuers of ELSISF
[9] Figure Source: John Jensen et al, 2002. DIRECT MEASUREMENT OF LIVING STANDARDS: THE NEW ZEALAND ELSI SCALE, Ministry of Social Development
[10] Equation : (Jensen, Spittal, Crichton, Sathiyandra, & Krishnan, 2002)
[11] Table1 : (Jersen, Spittal, & Krishnan, 2005)
[13] Example : as of income level 3 and expenditure level 2, total residual income will be 4000-3000= 1000 NIS
[14] This variable applies on non-loan takers also
[15] Amount that were entered by participant in USD where converted to NIS using rate of 3.80
[16] Most of participant answers to choice “others” was religiously not accepted to take a loan so we want to consider that answer (Loans are Haram in Islamic Countries )
[17] Dr. Salwa G Masad , Research Specialist , Birzeit University
[18] Treasury senior dealer at the national bank-Palestine, MBA student-Birzeit University
[19] HR officer at national Insurance Company-Palestine, MBA student-Birzeit University
[20] Chief Accountant at Mada Alarab.Co-Palestine, MBA student-Birzeit University
[21] Treasurer at Al-Watanya communication Company-Palestine, MBA student-Birzeit University
[22] (Jersen, Spittal, & Krishnan, 2005)
- Quote paper
- Qais Sbaih (Author), Mohammed Salah (Author), Duaa Abu Hamdeh (Author), Abeer Jaber (Author), 2016, Effects of Consumption Loans on Standards of Living in Palestine, Munich, GRIN Verlag, https://www.grin.com/document/315391
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