Download or read book The Dynamics of Rural Credit and Its Impacts on Agricultural Productivity written by Gideon Baffoe and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rural households in developing countries continue to have limited access to credit although credit is thought to play a vital role not only in agricultural activities but also in poverty reduction through improving the economic and social wellbeing of the people. Existing studies on rural credit do not allow us to clearly understand the relationship between agricultural production and credit. The main objective of this study is to investigate the relationship between access to credit and agricultural productivity using Ghana as a case study. Data were collected with structured questionnaire from 109 farm households who were categorised into borrowed and non-borrowed households. The results revealed that 66% of the sampled households (109) do not have access to credit. Non-borrowed households on average spend more (GHc675.6) on variable inputs than borrowed households (GHc652.6). However, the yield productivity (cassava, maize and yam) of borrowed households is larger than that of non-borrowed households and the difference is statistically significant at 5% confidence level. Average profit of borrowed households (GHc468.14) is also larger and statistically different from that of non-borrowed households (GHc323.48). The main factor that distinguishes borrowed households from non-borrowed households is livelihood diversification. The reason is that financial institutions prefer given credit to diversified households because of their ability to spread risk across a number of income generating activities. Results of the study imply that for a household to access credit, they must first improve agricultural productivity and this can be achieved by crop diversification. Access to credit will then help the household to diversify the livelihood more and diversification further, will allow such to have access to more credit. We argue that borrowed households with diversified livelihood have the potential to reduce vulnerability and enhance resilience even though using credit for non-farm activities is seen as risk taking strategy. We conclude by proposing an innovative development transitional model with the potential to increase productivity and enhance resilience.

Download or read book Credit Rationing and Institutional Constraint written by Xiangping Jia and published by Peter Lang. This book was released on 2008 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: The availability of credit has long occupied a central place in development strategies. Rural credit institutions are more than an instrument of intermediation, they also handle risk, mobilize and disseminate information about market and technology. Given the informational problems and innate disadvantages of rural credit markets, the rationale for laissez-faire and liberalization is by no means based on a sound understanding of the state's role in redressing market failures. This study examines the rural credit market in China, its impacts on agricultural transformation and the state's role in the functioning of markets. The particular objectives are to identify the determinants of credit rationing in both formal and informal sectors, to show the extent of credit rationing, to reveal the dynamic role of institutional lending in agricultural transformation, and to understand the challenges in developing efficient institutions.

Download or read book Productivity Shocks and Repayment Behavior in Rural Credit Markets written by Guigonan Serge Adjognon and published by . This book was released on 2018 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Improving rural credit markets requires a good understanding of the root causes of market failures and taking necessary steps to address them. This paper investigates the role of productivity shocks in borrowers' repayment choices. Using a framed field experiment that simulated a repeated interaction in an input credit market, the analysis finds strong evidence that negative productivity shocks lead to higher default, even when they do not induce negative returns. This relationship is robust to the presence of an information exchange system enforcing dynamic incentives. The findings suggest that recurrent agricultural production shocks resulting from the negative effects of climate change could exacerbate failures in rural credit markets, undermining hard-won progress toward rural financial inclusion.

Download or read book Rural credit in developing countries written by Avishay Braverman and published by World Bank Publications. This book was released on 1995 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Agricultural Credit and Its Impact on a Rural Economy written by Mario Miguel Carrillo-Huerta and published by . This book was released on 1972 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Mexico there has been a series of land tenure and credit reforms designed to ameliorate the income problems traditionally faced by Mexican agriculturalists. The most important land tenure reform has been the reinstitution of the Ejido system of landownership and control. Agricultural credit reforms have moulded the present formal agricultural credit system, which is composed of both private and official credit institutuions. This system, however, lacks sufficient loanable funds and therefore fails to provide credit to a large portion of Mexican agriculturalists, especially to those engaged in small scale production. To those farmers, who are the majority in Mexico, the unorganized agricultural credit market remains their only source of funds. Unorganized agricultural credit markets are characterized by the existence of abnormally high interest rates. It has been argued that the reasons for those high interest rates are the high administrative costs and risk involved in financing agricultural operations. But, the conditions of the unorganized agricultural credit market of a Mexican village suggest that it is instead tradition, coupled with the monopolistic position of the lenders that causes those high interest rates. The fact is that the agriculturalists engaged in small scale production are unable to take advantage of the lower interest rates that prevail in the formal credit system. As a consequence, poor agricultural producers are placed on the "vicious circle" so familiar to development economists. But, even if the poor farmers were supplied with cheap and abundant credit, they would still be unable to improvetheir low levels of income and productivity. One reason for this is that the small size of their farms does not allow the undertaking of major investment projects. Another reason is that the lack of community cooperation closes the door to the opportunity for the poor farmers to share the possible benefits derived from collective organization and production. Thus, credit alone is not the key to the resolution of the present crisis in Mexican agriculture.

Download or read book Credit Rationing Tenancy Productivity and the Dynamics of Inequality written by Avishay Braverman and published by . This book was released on 1989 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: When credit to farmers is rationed, changes in technology may lead to a long-term increase in sharecropping and then to reduced productivity. The development of effective rural financial institutions would reduce the likelihood of these negative effects.

Download or read book Near real time welfare and livelihood impacts of an active civil war Evidence from Ethiopia written by Abay, Kibrom A. and published by Intl Food Policy Res Inst. This book was released on 2022-03-01 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ethiopia is currently embroiled in a large-scale civil war that has continued for more than a year. Using unique High-Frequency Phone Survey (HFPS) data, which spans several months before and after the outbreak of the war, this paper provides fresh evidence on the ex durante impacts of the conflict on the food security and livelihood activities of affected households. We use difference-in-differences estimation to compare trends in the outcomes of interest across affected and unaffected regions (households) and before and after the outbreak of the civil war. Seven months into the conflict, we find that the outbreak of the civil war increased the probability of moderate to severe food insecurity by 38 percentage points. Using the Armed Conflict Location and Event Data (ACLED) on households’ exposure to violent conflict, we show that exposure to one additional battle leads to 1 percentage point increase in the probability of moderate to severe food insecurity. The conflict has reduced households’ access to food through supply chain disruptions while also curtailing non-farm livelihood activities. Non-farm and wage related activities were the most affected by the conflict while farming activities were relatively more resilient. Similarly, economic activities in urban areas were much more affected than those in rural areas. These substantial impact estimates, which are likely to be underestimates of the true average effects on the population, constitute novel evidence on the near-real-time impacts of an on-going civil conflict, providing direct evidence on how violent conflict disrupts the functioning of market supply chains and livelihoods activities. Our work highlights the potential of HFPS to monitor active and large-scale conflicts, especially in contexts where conventional data sources are not immediately available.

Download or read book The Impact of Rural Credit on Production and Income Distribution written by João Sayad and published by . This book was released on 1979 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Undermining Rural Development With Cheap Credit written by Dale W Adams and published by Westview Press. This book was released on 1984-09-13 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conference papers on effect of agricultural credit and rural area financial markets on rural development in developing countries - includes case studies; examines problems with moneylenders; looks at interest rate policies, credit costs and soundness of cheap credit; analyses relationships between politics and financing, incl. The subsidyzing of credit; suggests alternatives such as informal savings mobilisation, credit for rural industries, etc. Graphs, references and statistical tables. Conference held in Washington 1981.

Download or read book Some Aspects Of Agricultural Credit In A Developing Economy written by Sarbajit Chaudhuri and published by Serials Publications. This book was released on 2004 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Papers In This Volume Seek To Focus Through Rigorous Mathematical Models On Some Important Aspects Of Rural Economy In The Late Developing Countries. The Emphasis Is On Filling In The Gaps In The Existing Theoretical Literature On Rural Markets In These Countries By Constructing Models, Which Are More Realistic And Free From The Disquieting Features Of The Existing Models In This Field. The Models In This Volume Have Been Built Around The Typical Environmental And Socio-Economic Conditions As Well As Behaviour Patterns In The Less Developed Countries E.G., Price Uncertainty In The Product Market, Production Uncertainty, Crop Insurance Scheme Of The Government, Delay In The Disbursement Of Formal Credit, Price And Credit Subsidy Policies Of The Government Etc. The Principal-Agent Framework And Game Theory Have Been Pressed Into Service Where Necessary. The Book Presents, Inter Alia, Two Models On Credit-Product Interlinkage, One Model On Interlinked Credit-Share Tenancy Contract, And Three Models On Interaction Between Formal And Informal Credit Markets. A New Theory Of Interest Rate Determination In The Informal Credit Market Has Also Been Provide, Which Can Explain The Prevalence Of High Interest Rate In That Market. The Effects Of Price And Credit Subsidy Policies On The Productivity Of Farmer S Land And Alternative Ways Of Formulating A Credit Subsidy Policy Have Been Studied. Finally, There Is An Empirical Analysis Of The Flow Of Formal Credit To Farmers Based On A Survey Of Two Selected Villages In West Bengal, India.

Download or read book Agricultural Credit written by Balwinder Singh and published by Deep and Deep Publications. This book was released on 2000 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: At Present, The Peasantry Is In Crisis Because Of Less Remunerative Nature Of Farming. As A Result, The Issue Of Indebtedness Of The Peasantry Has Raised Many Questions And It Was Focus Of The Recent Debate After Some Reported Suicide Cases. This Book Evaluates The Nature And Extent Of Rural Credit Along With The Growth Of Agricultural Production And The Process Of Farm Mechanisation. This Book Will Certainly Prove Useful To The Planners And Policy Makers And Would Guide The Academics In General, And The Researchers And Students Of Economics.

Download or read book An Economic Investigation on Developments in Agricultural Credit During China s Collective Period written by Hexin Wang and published by . This book was released on 2019 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in the delivery of agricultural credit during the collective era, 1950 to 1978 is poorly understudied and poorly understood. In this thesis, I examine and provide an economic assessment of the political movements and developments in rural finance in China from 1950 to 1978/1984 with the latter date capturing the interim period before modern reforms took place. To examine the influencing factors of provincial agricultural loans, this thesis models agricultural loans from 1950 to 1984 as a function of natural disasters, grain output and 5 historical policy dummies. Interestingly, establishments of the Agricultural Bank of China (ABC) and Rural Credit Cooperatives (RCC), occurrence of the Great Leap Forward and two stages of the Cultural Revolution. My objective is to determine whether, and to what effect, these factors influenced agricultural credit. Using data collected from local gazetteers at the provincial and city levels, this preliminary assessments shows that these events and circumstances had significant impacts on rural credit. I find, for example, that the relationship between loan outstanding and interest rates is downward sloping which indicates what I refer to as a 'demand dominant' dynamic, that is shifts in supply along the credit demand curve has a much stronger impact on loan balances (a quasi-equilibrium) than shifts in demand along the supply/marginal cost curve. But I also show, for example that the change of steel output imposed a negative effect on RCC loans during the Great Leap Forward. Although RCC loans increased during this period this result suggests that the rate of growth in rural credit was dampened by the push for iron. In furtherance to this I show a significant increase in the deposit to loan ratio which suggests a form of red-lining in which rural deposits were not reinvested in rural loans but diverted towards non agricultural uses. Last not least, the documentation of contemporaneous living and economic conditions reported in the local financial gazetteers provide interesting and valuable stories and insights into agriculture credit in China.

Download or read book The Impact and Accessibility of Agricultural Credit written by Kojo Spio and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is an exploratory analysis of the impact and accessibility of formal agricultural credit to small-scale farmers, based on data collected from a sample of farmers in two regions of South Africa's Limpopo Province. The main aims of the research were to: -- Determine the impact of credit and its shadow price. -- Investigate the efficiency of the rural financial market. -- Determine the characteristics and factors that influence the accessibility of credit in the small-scale farming sector, as well as the differential access to credit within the sector. The results of the study indicate that productivity differs between borrowers and non-borrowers. The difference of 40% in favour of borrowers is caused both by credit use (21%) and the farmers' inherent characteristics. Thus, credit can increase a randomly selected farmer's output b 21 per cent. The marginal credit return rate is 2.10 at zero loan, implying a 110 per cent shadow price of capital. The hypothesis that non-borrowers are credit constrained is empirically supported. The marginal credit effect at mean loan size is 1.35, indicating that the average loan size is below income-maximising size. This implies that loan-quantity rationing is still prevalent among borrowers, and that it is possible that borrowers may still be liquidity constrained but to a lesser degree than non-borrowers. The estimated shadow-price of credit (35%) exceeds the average interest rate (18%) also suggesting that the rural credit markets in the survey areas are not o9perating in the most efficient manner. It also indicates that the farmers in the study area can afford to pay the prevailing market interest rate. About 29.4% of the farmers sampled for the study had access to formal credit. More than 57% of the credit used by small farmers comes from informal credit. Access to formal credit is also highly skewed, and shows greater ease of access for large farm size than smaller groups. Factors such as area cultivated, family labour, title deed, non-farm income, remittances and pensions (social benefits), awareness of the availability of credit, and repayment records are found to be important variables in predicting accessibility of credit to small scale farmers in the study area. The main findings are: -- Small-scale farmers have limited and differential access to credit: those with holdings approaching commercial size are better-off. -- Rural agricultural financial markets are inefficient. Borrowers and non-borrowers alike are credit constrained. -- Credit is not too expensive to be used profitably: it effects on productivity can improve the welfare of small-scale farmers. In view of these findings, the following policy proposals are suggested. Firstly, the policy of not providing interest rate subsidies for loans is justified. Credit subsidisation, with its unfortunate history, should be avoided. Secondly, there is the need to restructure costly and poorly performing rural financial institutions to effectively and efficiently provide the needed services to its clientele. To ensure rapid credit delivery, it is also imperative that agricultural institutions are encouraged to decentralise their activities. Expansion of banking outlets is one of the most important surge factors affecting financial services. In addition, policy makers should also focus on critical elements of the financial infrastructure, such as the information system and training facilities, which are necessary for the development of the rural financial system in South Africa. Finally, the threshold for entry into the financial market is simply too high for many. Hence, creating a conducive environment in rural areas is one of the areas that will require more attention. Investment in rural infrastructure will also act as catalyst for the establishment of some of the missing institutions that cause market failures in rural financial markets.

Download or read book The Role of Agriculture in Poverty Reduction written by Luc J. Christiaensen and published by World Bank Publications. This book was released on 2006 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country national accounts and poverty data from household surveys. Special attention is given to Sub-Saharan Africa. While the direct growth effect of agriculture on poverty reduction is likely to be smaller than that of non-agriculture (though not because of inherently inferior productivity growth), the indirect growth effect of agriculture (through its linkages with nonagriculture) appears substantial and at least as large as the reverse feedback effect. The poor participate much more in growth in the agricultural sector, especially in low-income countries, resulting in much larger poverty reduction impact. Together, these findings support the overall premise that enhancing agricultural productivity is the critical entry-point in designing effective poverty reduction strategies, including in Sub-Saharan Africa. Yet, to maximize the poverty reducing effects, the right agricultural technology and investments must be pursued, underscoring the need for much more country specific analysis of the structure and institutional organization of the rural economy in designing poverty reduction strategies.

Download or read book Rural China Takes Off written by Jean C. Oi and published by Univ of California Press. This book was released on 1999-05-17 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A distinctive and important contribution."—Thomas P. Bernstein, author of Up to the Mountains and Down to the Villages

Download or read book Agriculture and Development written by Gudrun Kochendörfer-Lucius and published by World Bank Publications. This book was released on 2008-01-01 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book highlights proceedings from the Berlin 2008: Agriculture and Development conference held in preparation for the World Development Report 2008.

Download or read book Agricultural Input Subsidies written by Ephraim Chirwa and published by Oxford University Press, USA. This book was released on 2013-09-26 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes forward our understanding of agricultural input subsidies in low income countries.