To see the other types of publications on this topic, follow the link: Rural credit policy.
Journal articles on the topic 'Rural credit policy'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Rural credit policy.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Turvey, Calum G. "Policy rationing in rural credit markets." Agricultural Finance Review 73, no. 2 (2013): 209–32. http://dx.doi.org/10.1108/afr-04-2013-0020.
Full textAbstract:
PurposeThe purpose of this paper is to present a discussion on the idea of “policy rationing”. Policy rationing refers to constraining impacts on farm credit through policy action or inaction. To present the ideas the author discusses ten themes in policy rationing, ranging from macro‐finance policies to smart lending and financial inclusion.Design/methodology/approachThe paper is developed as a narrative on agricultural credit policies based largely on existing literature.FindingsThis paper argues that the various critiques of rural credit policy in favor of free market principles have generally not worked in developing economies. Large numbers of farmers do not have access to formal credit. It is argued that there is a role for government and credit programs.Research limitations/implicationsThe opinions expressed in this paper are based on existing literature and not all ideas hold with general agreement across researchers and practitioners. The discussion is not exhaustive and in some cases the ideas might have been parsed further.Practical implicationsIn this paper the author discusses ten themes that he thinks are relevant for a balanced discussion of farm credit in a development context. These themes illustrate a variety of complexities with respect to rural credit policy. The author ends by restating the themes in the form of ten questions that should be asked in whole, or in part, before any farm credit policy is field‐implemented.Social implicationsThis paper deals with a broad range of issues on rural credit policy. It is directed towards a reformation of ideas about credit policy, especially in developing economies. It is argued that, all things considered, on balance there is a role for government in rural credit policy.Originality/valueThere is much discourse amongst development economist about the role of government and credit policy in agricultural development. By thinking of government action or inaction as a form of policy rationing, some clarification is brought to the policy debate.
2
Harrap, Tim. "Rural credit: Lessons for rural bankers and policy makers." Journal of Rural Studies 6, no. 2 (1990): 231–32. http://dx.doi.org/10.1016/0743-0167(90)90010-6.
Full text
3
Qureshi, Sarfraz Khan, and Akhtiar H. Shah. "A Critical Review of Rural Credit Policy in Pakistan." Pakistan Development Review 31, no. 4II (1992): 781–801. http://dx.doi.org/10.30541/v31i4iipp.781-801.
Full textAbstract:
Lack of liquidity which acts as a constraint for agricultural development has provided a rationale for rapid growth in formal agricultural credit in Pakistan since the early 1960s. Between 1959-60 and 1991-92 institutional credit for the sector had registered an annual growth rate of 31 percent in nominal terms and 20 percent in real terms. The explosive increase in agricultural credit was accompanied by a creation of new financial institutions, the strengthening of already existing institutions and the adoption of credit policies to increase the flow of credit for the sector in general and for small farmers in particular. In this paper, an attempt is made to review farm credit policy in Pakistan in relation to its impact on agricultural growth and equity and to assess the strength of the credit institutions to keep contributi~g effectively to the provision of credit in the rural sector.
4
Lin, Liqiong, Weizhuo Wang, Christopher Gan, David A. Cohen, and Quang T. T. Nguyen. "Rural Credit Constraint and Informal Rural Credit Accessibility in China." Sustainability 11, no. 7 (2019): 1935. http://dx.doi.org/10.3390/su11071935.
Full textAbstract:
This paper investigates the effects of rural households’ demographic characteristics on formal credit constraint, and explores the relationship between informal and formal lending in rural China. Using 2013 China’s Household Finance survey data, the authors apply probit regression models to investigate the effects of demographic factors on formal credit constraint and the household’s decision to borrow from informal credit sources. In addition, the endogenous switching regression model is applied to evaluate the impact of credit constraint on the welfare of rural farm households. The empirical evidence confirms that age, family size, annual household nonagricultural income, level of education, and history of informal borrowing have significant influence over credit constraint. Moreover, annual household nonagricultural income, the presence of children, borrowing from social networks and monthly communication expenses significantly impact rural households’ decision to utilise informal borrowing. Results from the endogenous switching regression model suggest that credit constraint by formal credit sources has no impact on household consumption.
5
Dinh Phi, Ho, and Duc Dong. "Formal Credit; Policy Impact; Household Income; Difference-Indifferences Method; Panel Data Regression." Journal of Asian Business and Economic Studies 22, no. 02 (2015): 144–60. http://dx.doi.org/10.24311/jabes/2015.22.2.01.
Full textAbstract:
Many studies have been conducted to estimate effects of rural credit programs on household income in both Vietnam and foreign coutries. Some provided positive evidence of such programs’ efficiency while others suggest that not all credit programs improved household income. Responding to the question of whether formal credit affects household income will contribute to directions determined to adjust allocation of resources for agriculture and rural development. In addition to the use of Difference-in-Differences (DD) method in connection with pooled OLS regression, this paper employs panel data from Vietnam Access to Resources Household Survey (VARHS) in the years 2006–2012, and finds that the formal credit does have effects on the rural household income. Additionally, the paper offers three groups of policies for promoting the role and improving efficiency of the formal credit programs on the household income in rural Vietnam.
6
Qureshi, Sarfraz Khan. "Credit for Rural Poor in Pakistan." Pakistan Development Review 34, no. 4II (1995): 769–78. http://dx.doi.org/10.30541/v34i4iipp.769-778.
Full textAbstract:
Farmers, large and small, and the non-farm population in rural areas all suffer from the liquidity constraint. Credit is needed to acquire command over the use of working capital, fixed capital, and consumption goods. The Green Revolution technologies have increased the credit requirement for modern inputs and farm investment. A new expanded role of rural credit institutions has emerged in the wake of the technology revol~tion in rural areas. Two distinct approaches have been used to provide the financial services to the rural poor. The most widely favoured approach in the past was the use of subsidised interest rates with a portion of credit reserved for the poor. The low interest policy was based on the premise that it would induce farmers, large and small, to use modern' inputs on a larger scale. One of the adverse side-effect of this policy was the introduction of an element of financial unsustainability in the loan portfolios of the credit institutions. The recent view about the delivery of rural credit consists of using market interest rates and using a mixture of 'bottom-up initiatives' at the local level, using non-government groups and 'top-down initiatives' by the formal credit institutions in terms of the simplification of the procedures and decentralisation of the credit operation for credit supply to the rural poor. In this paper, an attempt is made to evaluate the efficacy of these two approaches in the case of Pakistan for delivering credit to the rural poor.
7
Sriram, M. S. "Productivity of Rural Credit." International Journal of Rural Management 3, no. 2 (2007): 245–68. http://dx.doi.org/10.1177/097300520800300204.
Full text
8
XIE, Ping. "Reforms of China's rural credit cooperatives and policy options." China Economic Review 14, no. 4 (2003): 434–42. http://dx.doi.org/10.1016/j.chieco.2003.09.015.
Full text
9
Zhao, Jianmei, and Peter J. Barry. "Effects of credit constraints on rural household technical efficiency." China Agricultural Economic Review 6, no. 4 (2014): 654–68. http://dx.doi.org/10.1108/caer-10-2012-0115.
Full textAbstract:
Purpose – The purpose of this paper is to evaluate the effects of access to formal credit on rural household technical efficiency in China. Design/methodology/approach – Based on the rural household survey data in Weifang city, Shandong province in northern China, the authors apply recent developed bootstrapped DEA approach to investigate rural technical efficiency at the household level under the consideration of off-farm activities. Rural households are then identified as credit constrained and classified as supply-side and demand-side credit constraints by applying direct elicitation method. Finally, the authors apply a tobit regression to examine the effects of credit constraints on household technical efficiency. Findings – Rural households in China not only suffer supply-side credit constraints, but also demand-side credit constraints resulted from the transaction costs and risk rationing. The tobit regression discloses that demand-side credit constraints impose significant negative impacts on household technical efficiency. Originality/value – The authors clarify the definition of credit constraints and classify the credit constraints into supply-side and demand-side credit constraints. The results of this paper have significant policy implications for rural finance policies in China.
10
Odonkor, Alexander Ayertey. "An Assessment of Credit Risk Management Practices of Adansi Rural Bank Limited." International Journal of Economics and Finance 10, no. 11 (2018): 110. http://dx.doi.org/10.5539/ijef.v10n11p110.
Full textAbstract:
Rural banks in Ghana are not exempted from the risk exposures associated with managing credit. Given their importance to the economy, appropriate measures should be taken to mitigate credit risk exposures of rural banks in the country. The study critically examines the credit risk management practices of rural banks in Ghana making reference to Adansi Rural Bank Limited. The study was carried out to examine the credit management practices, credit policies and strategies for managing credit as well as challenges faced in this practice and to recommend solutions that will mitigate the credit risk exposures of Adansi Rural Bank Limited. The researcher used a purposive sampling technique to select a sample size of forty respondents which comprised of branch managers and credit officers from four different branches of the rural bank. The researcher used a well structured questionnaire and a face to face interview to collect primary data for this study. The researcher employed both primary and secondary data in the study. Descriptive statistical tools were used in analysing the data collected. The researcher discovered that Adansi Rural Bank Limited had implemented a rigorous credit risk management policy. This included; loan appraisal, use of collateral and checking the credit history of borrowers. The results of the study revealed that, rural banks that have implemented rigorous credit risk management policies were exposed to few challenges in managing credit risk as compared to rural banks with poorly implemented credit risk management policies. This affirms the point that a comprehensive credit risk management system should be adopted and implemented well by rural banks in Ghana.
11
Tarn, On-Kit. "Rural Finance in China." China Quarterly 113 (March 1988): 60–76. http://dx.doi.org/10.1017/s0305741000026400.
Full textAbstract:
There is a common policy bias against creating an appropriate economic environment for rural growth in many less developed countries as governments attempt to strive for rapid industrialization through various interventions in both the urban and rural sectors. As a result, signals for resource flows are distorted and incentive to raise agricultural productivity is destroyed. Such structural distortions and the low level of income mean that investment in agricultural production is often unattractive and therefore funds for that purpose are scarce. Many developing countries have, over the past 40 years, attempted to alleviate this perceived inadequacy of credits, which was seen as the only inhibiting factor to rural development, by the provision of highly subsidized and controlled finance through the creation of specialized credit institutions. However, there is an increasing recognition that this conventional approach has failed to achieve its aim and its premises are seriously challenged.
12
Manig, Winfried. "The Importance of the Informal Financial Market for Rural Development Financing in Developing Countries: The Example of Pakistan." Pakistan Development Review 35, no. 3 (1996): 229–39. http://dx.doi.org/10.30541/v35i3pp.229-239.
Full textAbstract:
The informal credit market is of crucial importance in the rural areas in Pakistan, even after decades of considerable development of formal credit organisations and of subsidised credit programmes by the government. This is due mainly to the fact that informal credit relations are embedded in the economic, political, and social interaction networks of the inhabitants in the rural areas. These interaction networks also maintain the direct credit costs and the transaction costs at a low level. However, the national development policy underestimates or even negates the significance of the informal financial market. Here, political action is required for initiating change.
13
Yadav, Priyanka, and Anil K. Sharma. "Agriculture Credit in Developing Economies: A Review of Relevant Literature." International Journal of Economics and Finance 7, no. 12 (2015): 219. http://dx.doi.org/10.5539/ijef.v7n12p219.
Full textAbstract:
<p>This paper aims to present a comprehensive review of 110 studies on agriculture credit in developing countries during 1995 to 2015. The literature has been classified and presented on the basis of time period, country of study, methodology used, issues covered, and sources of study. Agriculture credit has gained interest of policy makers and researchers in developing economies in recent years with raising concerns of issues like food security and rising population. However, the situation of small and marginal farmers is still vulnerable and they lack timely and adequate access to institutional sources of finance. Non-institutional sources of credit are still dominant in rural credit markets; while the role of micro-finance appears dubious. This study will prove helpful for policy makers and future researchers who wish to study diverse issues in rural finance in general and agriculture credit in particular.</p>
14
Tan, Haoyang, and Qiang Zhang. "Application of Blockchain Hierarchical Model in the Realm of Rural Green Credit Investigation." Sustainability 13, no. 3 (2021): 1324. http://dx.doi.org/10.3390/su13031324.
Full textAbstract:
In order to realize the application research of blockchain technology in the field of green credit investigation, the current paper adopts the method of a blockchain hierarchical model to study the rural green credit. With regard to the realm of rural green credit investigation, this paper sorts out the characteristics of credit data in China’s countryside by countryside credit investigation and determines the major problems and in rural green credit investigation of financial inclusion. Subsequently, the authors put forward a blockchain hierarchical model, which not only has reinforced the advantages in original blockchain dedicated to agriculture, rural areas and rural residents, such as traceability and immutability, but also has transformed the decentralization into disintermediation and changed the single-layered P2P network into a multilayered structure based on China’s rural financial environment. Finally, the authors collect and extract the proper credit investigation data on the rural internet to assess the application value of the model by investigating its practical applicability in reality and problems that may occur during the application of the model. Results show that private credit information has an important impact on the prediction accuracy, and the blockchain hierarchical model is helpful to ensure the reliability and security of rural green credit data.
15
Ray, Sougata. "Challenges and changes in Indian rural credit market: a review." Agricultural Finance Review 79, no. 3 (2019): 338–52. http://dx.doi.org/10.1108/afr-07-2018-0054.
Full textAbstract:
Purpose Post-independence, the rural credit market in India has undergone significant structural changes in order to enhance the availability and efficient use of credit. The purpose of this paper is to understand the challenges and changes in the Indian rural credit market in the post-independence period. Design/methodology/approach Using data from the All India Debt and Investment Survey conducted by the National Sample Survey Organisation of the Government of India from 1971–1972 to 2012 and Reserve Bank of India in 1951–1952 and 1961–1962, the study focuses on three important aspect of rural credit market, i.e. the availability, sources and uses of credit. The analysis is based on both the national and state level data and uses the decadal growth rates to explain the changes in the rural credit market. Findings Availability of credit, in terms of volume and number of households indebted, has increased substantially. However, the sharp rise in outstanding debt is a matter of concern. The share of credit from institutional agencies has seen a continuous decline post liberalisation. The non-institutional agencies, particularly the professional moneylenders, continue to be the most preferred sources of credit owing to their flexible nature of operation. Interesting, microfinance has emerged as a major source of credit particularly for the poor rural households. The rise in credit usage for non-income generating activities amongst poor households is another important concern. Originality/value The study highlights some of the most important features and characteristics associated with the Indian rural credit market. An understanding of these issues would provide valuable insight for shaping the future policy responses.
16
Allister McGregor, J. "Credit and the rural poor: The changing policy environment in Bangladesh." Public Administration and Development 8, no. 4 (1988): 467–82. http://dx.doi.org/10.1002/pad.4230080408.
Full text
17
Hoff, Karla, and Joseph E. Stiglitz. "Introduction: Imperfect Information and Rural Credit Markets—Puzzles and Policy Perspectives." World Bank Economic Review 4, no. 3 (1990): 235–50. http://dx.doi.org/10.1093/wber/4.3.235.
Full text
18
Assunção, Juliano, Clarissa Gandour, Romero Rocha, and Rudi Rocha. "The Effect of Rural Credit on Deforestation: Evidence from the Brazilian Amazon." Economic Journal 130, no. 626 (2019): 290–330. http://dx.doi.org/10.1093/ej/uez060.
Full textAbstract:
Abstract In 2008, the Brazilian government made the concession of rural credit in the Amazon conditional upon stricter requirements as an attempt to curb forest clearings. This article studies the impact of this innovative policy on deforestation. Difference-in-differences estimations based on a panel of municipalities show that the policy change led to a substantial reduction in deforestation, mostly in municipalities where cattle ranching is the leading economic activity. The results suggest that the mechanism underlying these effects was a restriction in access to rural credit, one of the main support mechanisms for agricultural production in Brazil.
19
Cheng, Enjiang, and Abdullahi D. Ahmed. "The demand for credit, credit rationing and the role of microfinance." China Agricultural Economic Review 6, no. 2 (2014): 295–315. http://dx.doi.org/10.1108/caer-07-2012-0076.
Full textAbstract:
Purpose – The purpose of this study is to examine the demand for credit and credit rationing conducted by formal, informal and emerging microfinance lenders in the four poor counties of China. Design/methodology/approach – This paper extends the existing studies on credit rationing in rural China by comparing the determinants of credit rationing by three different lenders, the formal lenders rural credit cooperatives (RCCs), the informal lenders and the new microfinance institutions (MFIs). Findings – MFIs are capable of reaching out to the even poorer households if they develop the loan products based on the income and expenditure flows of these households. Research limitations/implications – The determinants of credit rationing by three types of institutions are estimated separately. Practical implications – RCCs in China shall change their policy of discrimination against female-headed households. RCCs shall also simplify the loan application procedures and assess the clients based on their repayment capacities rather than the age or assets alone. RCCs could learn from MFIs to use incomes from migrant workers as a criterion to assess the loan applicants. Social implications – gender equity for loan access. Originality/value – This paper extends the existing studies on credit rationing in rural China by comparing the determinants of credit rationing by three different lenders, the formal lenders (RCCs), the informal lenders and the new MFIs.
20
Islam, Md Ariful, Mahmudul Hasan Siddiqui, Kh Fahim Hossain, and Md Rayhan Islam. "Micro Credit: The Empowerment of Women." Business and Management Horizons 2, no. 1 (2014): 1. http://dx.doi.org/10.5296/bmh.v2i1.4853.
Full textAbstract:
All Micro-credit institutions of Bangladesh claim that they bring the poor women from dead end situation to a promising position by providing a very small size of loan, which is given in cash. This paper attempts to critically examine the impacts of micro credit program of micro credit institution on the empowerment of the rural poor women. In this study some major indicators of women empowerment have been specified so as to make a judgment whether or not micro credit institution could actually reach the poor women. The details of the impact analysis in this sphere have been made by using both the qualitative and quantitative tools on the basis of secondary data. The estimates show hardly any significant relationship between micro credit institute operations and a strong position of the rural women in question.However the gloomy findings of this paper are expected to create awareness of the policy makers about the long run impact of micro credit programs of micro credit institution and followers on the rural poor women.
21
Garcias, Marcos de Oliveira, and Ana Lucia Kassouf. "Assessment of rural credit impact on land and labor productivity for Brazilian family farmers." Nova Economia 26, no. 3 (2016): 721–46. http://dx.doi.org/10.1590/0103-6351/2761.
Full textAbstract:
Abstract: The objective of this study was to evaluate the impact of rural credit on land and labor productivity for Brazilian family farmers and assess factors influencing the rural credit approval process. The study employs data contained in the 2006 Brazilian Municipality1 Agricultural Census and a “trade index” (TI) specifically constructed to differentiate family farmers. The impact of credit on land and labor productivity was calculated by comparing the productivity of a group of family farmers that received credit with the productivity of a group of family farmers that were credit restricted. The groups were constructed with the aid of propensity score matching. When statistically significant, the average effect of credit was found to increase the recipient’s productivity of land and labor. It was also found that productivity increases due to the use of credit aligned with the level of the family farmer’s integration into the commercial market and, therefore, one credit policy does not fit for all Brazilian family farmers.
22
Malik, Sohail Jehangir, and Hina Nazli. "Rural Poverty and Credit Use: Evidence from Pakistan." Pakistan Development Review 38, no. 4II (1999): 699–716. http://dx.doi.org/10.30541/v38i4iipp.699-716.
Full textAbstract:
The 1990s have seen poverty reduction become the overarching objective of all economic development. In countries where poverty is largely a rural phenomenon it is obvious that considerations of poverty focus on improving rural welfare. The welfare impact of credit use in the process of agricultural development is generally not explicitly documented in the literature.1 The emphasis is generally on “the requisites for development of rural financial policies that facilitate rural growth” [Desai and Mellor (1993)]. Welfare gains arise from this growth through net gains in income from the relaxation of the capital constraint leading to higher input use and resultant higher output, in addition to increasing the risk bearing capacity of households thus leading to the adoption of new technology and diversification of crop mix and income sources. Additionally welfare gains can also arise from credit use directly through improved and more efficient consumption smoothing. Pakistan is predominantly rural and poor. Attempts over several decades, by successive governments, at developing the institutional credit market in Pakistan have failed miserably. The rural credit market continues to be fragmented and beset by distortions. Credit policy aimed at improving access of the small landowners and the poor ended up being diverted to the powerful large landowners. This misuse is widely documented in Malik (1989, 1990 and 1999). Badly designed policies coupled with a weak institutional structure and rampant corruption called into question the very basis for using credit markets as a means for poverty alleviation.
23
Moahid, Masaood, and Keshav Lall Maharjan. "Factors Affecting Farmers’ Access to Formal and Informal Credit: Evidence from Rural Afghanistan." Sustainability 12, no. 3 (2020): 1268. http://dx.doi.org/10.3390/su12031268.
Full textAbstract:
Adequate access to credit is necessary for the sustainable development of agriculture. This study uses a double hurdle model to investigate what affects farming households’ credit participation and amount, and a Probit model to find out credit constraints. For this purpose, the data from a survey of 292 farming households in Afghanistan was utilized. The study finds that households obtain credit for their agricultural activities from various formal and informal sources. The results of the double hurdle model reveal that the financial activities of the households were positively determined by crop diversity, education, number of adults in a household, size of land, and access to extension. Non-agricultural income decreases the likelihood of participation. The results of the analysis of credit constraints indicate that formal credit did not help small-scale and remoter farming households; however, these households relied on informal credit, especially when they faced income shock. Furthermore, religious belief increased the chances of avoiding formal credit but not informal credit. It is suggested that formal credit should be expanded to rural areas, especially to small-scale farming households. Policy makers should also consider increasing access to extension. Formal financial institutions should provide Sharia-compliant credit, which increases the confidence level of households in using formal credit in Afghanistan.
24
Ouattara, N’Banan, Xiong Xueping, Trazié Bertrand Athanase Youan BI, Lacina Traoré, J. K. Ahiakpa, and Odountan Ambaliou Olounlade. "Determinants of smallholder farmers’ access to microfinance credits." Agricultural Finance Review 80, no. 3 (2020): 401–19. http://dx.doi.org/10.1108/afr-07-2019-0075.
Full textAbstract:
Purpose Several years after the regularization of microfinance activity in Côte d’Ivoire, smallholder farmers’ access to microfinance credits still remains marginal. The purpose of this paper is to identify and analyze key determinants of access to microfinance credit in Sassandra-Marahoué District. Design/methodology/approach A total of 150 smallholder farmers were randomly sampled using an interview guide and semi-structured questionnaires. Univariate statistics and Probit binary modeling were employed for data analyses. Findings Results revealed that socio-economic/demographic characteristics of smallholder farmers and credit requirements imposed by microfinance institutions (MFIs) are key determinants of smallholder farmers’ access to microfinance credits in the district. Research limitations/implications Although, the authors shed light on the determinants of microfinance credit access for smallholder farmers in this district, the study focused on a single source of financial credit. Future research will need to explore the determinants of credit demand and the choice between different sources of rural credits in Côte d’Ivoire. Practical implications The findings suggest that MFIs seldom take into account smallholder farmers who are not engaged in off-farm income-generating activities and savings account; and those with low level of education. Sensitization programs on the importance of savings mobilization and credit policy by MFIs will potentially increase smallholder’s knowledge on credit access requirements and thereby increased access. Originality/value To the authors’ knowledge, this is the first study investigating determinants of smallholder farmers’ access to microfinance credits in Côte d’Ivoire specifically in the Sassandra-Marahoué District. The results of this study will serve as a guide for MFIs for improving smallholder farmers’ access to credit.
25
Sun, Li Jun. "Imbalanced Financial Credit and the Macro Economic Risk of China." Advanced Materials Research 204-210 (February 2011): 569–72. http://dx.doi.org/10.4028/www.scientific.net/amr.204-210.569.
Full textAbstract:
China's economic and financial imbalances become increasingly prominent. The imbalances of financial credit are showed as follows: urban-rural imbalance, regional imbalance, state-owned and private business imbalance, virtual-real economy imbalance, and internal-external economic imbalance. The imbalanced financial credit has increased the risk of China's macro-economy, reducing the effectiveness of monetary policy control. Therefore, we should promote the balanced development of financial credit, and so as to promote the balanced economic growth.
26
Cao, Ying (Jessica), Calum Turvey, Jiujie Ma, Rong Kong, Guangwen He, and Jubo Yan. "Incentive mechanisms, loan decisions and policy rationing." Agricultural Finance Review 76, no. 3 (2016): 326–47. http://dx.doi.org/10.1108/afr-08-2015-0032.
Full textAbstract:
Purpose The purpose of this paper is to investigate whether negative incentives in the pay-for-performance mechanism would trigger loan officers to strategically reject potentially good loans. If so, what is the feasible solution to alleviate the problem. Design/methodology/approach A framed field experiment was conducted to test loan decision behaviors using loan officers from Rural Credit Cooperatives in Shandong, China. A 2 by 2 between-subject design was adopted to generate variation in incentives and prior information about credit risks. Findings Results showed that loan officers did ration credit by rejecting more loans when facing risks of personal income loss. However, providing risk information about the application pool boosted the approval rate and offset the behavioral responses by a roughly same magnitude. Research limitations/implications Findings in this study suggest that certain institutional settings can result in credit rationing via strategic loan misclassification. Further, information sometimes generates similar effects as those costly incentives or mechanisms that are not implementable in practice. Originality/value This study adopted an innovative monetized experimental design that allows researchers to examine the (otherwise unobservable) trade-offs between Type I and Type II error in loan misclassification as incentives change. In addition, an anchoring prior information treatment is used to solicit the relative power of almost costless information and costly monetary incentives, and to point out a potentially feasible solution.
27
Atamja, Louis, and Sungjoon Yoo. "Credit Constraint and Rural Household Welfare in the Mezam Division of the North-West Region of Cameroon." Sustainability 13, no. 11 (2021): 5964. http://dx.doi.org/10.3390/su13115964.
Full textAbstract:
The purpose of this study is to examine the effect of the rural household’s head and household characteristics on credit accessibility. This study also seeks to investigate how credit constraint affects rural household welfare in the Mezam division of the North-West region of Cameroon. Using data from a household survey questionnaire, we found that 36.88% of the households were credit-constrained, while 63.13% were unconstrained. A probit regression model was used to examine the determinants of households’ credit access, while an endogenous switching regression model was used to analyze the impact of credit constraint on household welfare. The results from the probit regression model indicate the importance of the farmer’s or trader’s organization membership, occupation, and savings to the household’s likelihood of being credit-constrained. On the other hand, a prediction from the endogenous switching regression model confirms that households with access to credit have a better standard of welfare than a constrained household. From the results, it is necessary for the government to subsidize microfinance institutions, so that they can take on the risk of offering credit to rural households.
28
Wang, Xiaohua, Meilan Chen, Xi He, and Fangfang Zhang. "Credit Constraint, Credit Adjustment, and Sustainable Growth of Farmers’ Income." Sustainability 10, no. 12 (2018): 4407. http://dx.doi.org/10.3390/su10124407.
Full textAbstract:
Research on financial theory and practice has shown that the development of transition economies generally faces two major challenges. First, the less developed regions face more severe financial repression, which leads to imbalanced and unsustainable development of regional economies. Second, farmers face different credit constraints because of their productivity differences, which can further polarize the internal inequality of their income. Based on cross-sectional data of 2037 counties in 30 provinces of China in 2010, this paper employs quantile regression to investigate the relationships among credit constraints, credit adjustment, and the sustainable growth of farmers’ income. Our results confirm that rural residents generally face credit constraints, and there are significant stratified differences in the impact of farmer credit on farmers’ income. Farmers with higher income are more likely to obtain bank credit and continue to grow their income, while farmers with lower income are more likely to fall into the “vicious circle of poverty” because of their lack of capital accumulation. Therefore, to promote more fair and sustainable growth of farmers’ income, it is important to increase the credit available to farmers. Furthermore, it is critical to promote healthy competition among county financial institutions and accelerate the establishment of inclusive financial systems. This can ultimately help ensure sustainable development of agriculture and rural economy.
29
Linh, Ta, Dang Anh Tuan, Phan Thu Trang, et al. "Determinants of Farming Households’ Credit Accessibility in Rural Areas of Vietnam: A Case Study in Haiphong City, Vietnam." Sustainability 12, no. 11 (2020): 4357. http://dx.doi.org/10.3390/su12114357.
Full textAbstract:
The role of agricultural sectors in the economic development of a country is undeniable, especially in developing and least-developed ones, ensuring food supply, increasing national income, export earnings and poverty reduction. Vietnam is known as an emerging market, depending directly on agriculture-related activities for their livelihood, in which the issue of rural credit access still remains a confounding problem. The paper focuses on identifying the determinants of credit access in rural areas of Vietnam using Haiphong city as a case study, including formal and informal credit. The paper uses data collected from a survey of 180 rural households in a district of Haiphong city. The probit and linear regression models are applied to investigate the factors that determine household credit accessibility, i.e., the household’s decision to borrow and borrowing amounts. Results of this analysis reveal the different significant determinants of formal and informal credit market access. Group membership and connection are found to have significantly strong impacts on formal credit accessibility while informal credit access is strongly influenced by agriculture income and dependency ratio. The implications of these findings for enhancing formal credit accessibility and decreasing the dependence on informal markets are discussed.
30
Simelane, Bongile, and Nicholas M. Odhiambo. "The Dynamics of Savings Mobilisation in Lesotho." Studia Universitatis „Vasile Goldis” Arad – Economics Series 29, no. 3 (2019): 92–108. http://dx.doi.org/10.2478/sues-2019-0014.
Full textAbstract:
Abstract This paper provides a conceptual analysis of the dynamics of savings in Lesotho for the period 1960 to 2017. The study is motivated by the low and sometimes negative savings rate and the declining level of economic growth prevailing in Lesotho during the period from 1960 to 2017. The study analyses the behaviour of savings in Lesotho, using the savings trends for the country ever since it obtained independence in 1966. The study further examines the policies that the government of Lesotho has implemented in order to promote savings in the country. The government adopted a policy on rural savings and credit schemes as a means of promoting savings in Lesotho. The purpose of the policy is to improve access to credit for the rural population. The study has identified some challenges that impede savings mobilization in Lesotho. The major savings challenge in Lesotho is the lack of banking facilities in rural areas.
31
Owais Shafique and Maria Habib. "Over-Indebtedness of Rural Micro-credit Financing in Bahawalpur: An Impediment to their Social & Financial Mobility." Journal of Accounting and Finance in Emerging Economies 6, no. 2 (2020): 559–69. http://dx.doi.org/10.26710/jafee.v6i2.1254.
Full textAbstract:
The purpose of this study is to investigate the impact of micro-credit finance on over-indebtedness and social & financial mobility of micro-credit finance participants. The objectives of this research is to investigate that micro-credit finance participation leads to over-indebtedness of micro-credit finance and over-indebtedness of micro-credit finance effect the social and financial mobility of micro-credit finance participants. The study also investigates the role of women participation in those financial decisions through which over-indebtedness exist. The study is quantitative and the research design is explanatory in nature. The data was collected from 266 current and ex-micro-credit finance participants through questionnaire and interview were also conducted in order to facilitate respondents. The data was analyzed through different statistical software I.e. Microsoft Excel and SPSS. The findings of the study indicate that micro-credit finance participants experience over-indebtedness by participation in micro-credit finance program but it does not affect the social and financial mobility of micro-credit finance participants. It also evaluate that women involvement has weak mediating relation with over-indebtedness and financial mobility. This study has important implications because it provides insights regarding over-indebtedness of micro-credit finance participants that effects their social & financial mobility. This study also helps policy makers in formulating new regulations in the area of micro-credit finance sector in Pakistan. The new policies may target the aspect of over-indebtedness among micro-credit participants in future.
32
Lin, Liqiong, Weizhuo Wang, Christopher Gan, and Quang T. T. Nguyen. "Credit Constraints on Farm Household Welfare in Rural China: Evidence from Fujian Province." Sustainability 11, no. 11 (2019): 3221. http://dx.doi.org/10.3390/su11113221.
Full textAbstract:
This study investigates the effect of demographic factors on formal and informal borrowing households in rural Fujian Province. The study tests whether credit constraint affects rural farmers’ welfare in the studied region, using a probit regression and endogenous switching regression model to analyse data collected in 2017 from 960 farm households. Analysis shows that age, poverty, household size, and farmland size operate to constrain credit in formal borrowing. Results also indicate that level of education, farm land size and age have significant impacts on rural household borrowing from informal sources. The results from the endogenous switching model approach suggest that credit constraint does have a significant impact on rural farmers’ consumption and welfare in Fujian province.
33
Qin, Long, Ruoen Ren, and Qinghai Li. "The Dual Threshold Limit of Financing and Formal Credit Availability with Chinese Rural Households: An Investigation Based on a Large Scale Survey." Sustainability 10, no. 10 (2018): 3577. http://dx.doi.org/10.3390/su10103577.
Full textAbstract:
The literature on credit availability for rural households primarily focuses on the supply side, and largely ignores the demand side. This paper divided the credit process into three stages using large-scale household survey data. It also reviewed the credit process in other developing countries. A dual sample selection model was used to deal with the dual self-selection problem, which has been neglected in previous studies. This paper found that the main obstacle that farmers faced in obtaining financing was fear of applying for credit from formal financial institutions. In addition, there were significant differences in the determinants of different stages of the credit process of rural households.
34
Xiang, Cheng, Xiangping Jia, and Jikun Huang. "Microfinance through non-governmental organizations and its effects on formal and informal credit." China Agricultural Economic Review 6, no. 2 (2014): 182–97. http://dx.doi.org/10.1108/caer-04-2013-0062.
Full textAbstract:
Purpose – Internationally, microfinance run by non-governmental organizations (NGOs) is often considered an important approach to meeting the credit demand of rural households, particularly among the poor. However, the perceived competitions with formal financial institutions and concerns about financial risks in the rural economy have impeded the development of microfinance by NGOs in China. Despite these concerns about NGO microfinance, little empirical evidence has been brought to prove them. The purpose of this paper is to provide empirical evidence of the relationship between NGO microfinance and farmers’ demand for formal and informal credit in rural China. Design/methodology/approach – The study is based on a household longitudinal data set consisting of 749 households from 40 microfinance villages in rural China. This study draws evidence from China's largest NGO microfinance. Out of the five county branches where China Foundation for Poverty Alleviation has launched institutionalized microfinance since 2006, the authors selected two of them. A random sampling approach was applied in surveying villages and households. In an effort to create impact assessments, the authors surveyed the detailed information on household characteristics and credit access during the period 2006-2009. A panel data is thus structured for the analysis. Findings – The authors found that the demand for credit in rural China is immense and rising, as formal financial institutions have gradually moved away from less developed regions in rural areas. In its place, informal lending has become a primary source of credit for the poor. However, where NGO microfinance has become available, both formal and informal credit has slowed down. The development and expansion of NGO microfinance did stand up as a substitution for institutional lenders and informal financial networks. Research limitations/implications – The findings have profound policy implications. First, since the development of NGO microfinance fill the demand for credit in rural China and poses low financial risk, the intellectual bias against NGO microfinance is unwarranted. In particular, the regulations that hamper the development of NGO microfinance should be corrected. Second, informal networks do not appear to be costless. Where NGO microfinance can substitute for them, it can mitigate the financial stresses related to the informal credit market.
35
Hu, Yue, Siwei Lu, Huiyuan Zhang, Guibo Liu, and Jiangang Peng. "Empirical Analysis on the Performance of Rural Credit Cooperative’s Shareholding Reform Based on the Rationale of Isomorphic Incentive Compatibility." Sustainability 13, no. 5 (2021): 2844. http://dx.doi.org/10.3390/su13052844.
Full textAbstract:
Rural economic development helps reduce the income inequality in China. Existing studies show the positive effects of rural reforms, however, whether the rural credit cooperative’s shareholding reform promotes rural economic development and whether effects are exerted through the synergism between agricultural producers and rural financial institutions remain unclear yet. Employing the rationale of isomorphic incentive compatibility from system science, we analyze the necessity and influencing conduit of rural credit cooperative’s shareholding reform theoretically. Analysis shows that only the financial services from rural commercial banks can promote the modernized production, and thus the synergism between them drives rural economic development. Then we make empirical analysis on the effect with a Chinese provincial sample. Comparing to provinces with lower reform progress, the provinces with greater reform progress are influenced more prominently by this reform. Applying coupling coordination degree model, the coordination between agricultural production and rural banking development shows obvious increase, especially after the formal implementation of shareholding reform on rural credit cooperative. Empirical results indicate that this synergism plays positive roles in promoting agricultural growth and reducing the urban–rural income gap. In addition, these effects are more pronounced after the formal implementation of shareholding reform.
36
Sulaiman, Zaagha Alexander, and Murray Monday Ebike. "Deposit Money Bank Policy and Private Sector Funding: A Multi-Dimensional Study from Nigeria." Australian Finance & Banking Review 4, no. 1 (2020): 18–35. http://dx.doi.org/10.46281/afbr.v4i1.600.
Full textAbstract:
This study empirically examined the effect of deposit money banks policy on private sector funding in Nigeria. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1985-2018. Credit to private sector, credit to core private sector and credit to small and medium scale enterprises was used as dependent variables while liquidity ratio and loan to deposit ratio was used as independent variables. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings revealed that deposit money banks policy explains 40.8 percent variation on credit to core private sector, 28.1 percent and 58.9 percent of the variation in credit to core private sector and credit to small and medium scale enterprises sector. The study conclude that deposit money banks policy has no significant relationship with credit to private sector and credit to core private sector but has significant relation with credit to small and medium scale enterprises sector. From the findings, the study recommends compliance to deposit money banks policies; this will enhance effective financial intermediation and increase funding of the private sector. There is also need for the regulatory authorities to harmonize the various deposit money banks policies with the objective of enhancing private sector funding. There is need to decentralize the operation of the deposit money banks in the urban cities. Policies should be formulated to extend the operation of the deposit money banks to the rural communities, this will enable the institutions to mobilize much deposit and increase credit to the private sector.
37
Sun, Hong, Xiaohong Li, and Wenjing Li. "The Nexus between Credit Channels and Farm Household Vulnerability to Poverty: Evidence from Rural China." Sustainability 12, no. 7 (2020): 3019. http://dx.doi.org/10.3390/su12073019.
Full textAbstract:
It is well known that finance is at the core of economic activities, and rural finance is an important force for agricultural development, rural economic growth, and farmer income growth, but how rural credit affects vulnerability to poverty of farm households is not yet known. The study on the nexus between the credit channels and vulnerability to poverty can not only realize targeted poverty alleviation but also promote sustainable rural development. This study measures vulnerability to poverty of Chinese farm households by three-stage feasible generalized least squares (FGLS) and tests for the impact of two credit channels on farm household’s vulnerability to poverty based on China Household Finance Survey data. We mainly found that the proportion of structural poverty in western areas is comparatively large, and risky poverty of farm households in eastern areas is relatively serious. The high education cost may be an important factor in farm household poverty; the cost-effectiveness of education is higher than that of earnings. Farm household vulnerability to poverty with folk loans is 0.2% higher than that of farm households without private credit; however, this is not significant. Farm household vulnerability to poverty with bank credit is 0.4% lower than households without bank credit, which is significant. For farm households who have a higher level of vulnerability to poverty, the effect of bank credit on reducing vulnerability to poverty is greater. Moreover, we replaced the vulnerability-to-poverty variable with a more rigid indicator to test the relationship between the credit channels and vulnerability to poverty and got the same results as before.
38
Hartarska, Valentina, Denis Nadolnyak, and Xuan Shen. "Agricultural credit and economic growth in rural areas." Agricultural Finance Review 75, no. 3 (2015): 302–12. http://dx.doi.org/10.1108/afr-04-2015-0018.
Full textAbstract:
Purpose – In this paper, the authors set out to establish if there is a link between finance and economic growth in rural areas. The purpose of this paper is to evaluate the relation between credit by major lenders in rural areas – commercial banks and Farm Credit System (FCS) institutions – and economic growth for the period 1991-2010. Design/methodology/approach – The motivation for this work comes from empirical studies showing a link between economic development and financial system development as well as from work which highlights the positive role of long-term finance provided by banks. The authors use two alternative panel data sets and fixed effects models to estimate the causal effect of credit supply (with lagged explanatory variables) on agricultural GDP growth per rural resident. Findings – The authors find a positive association between agricultural lending and agricultural GDP growth per rural resident with additional billion in loans (about a third of the actual average) associated with 7-10 percent higher state growth rate with this association stronger during the 1990s. Regional data confirm these results. The results point to a positive link between credit and economic growth in rural areas during that period, attributable to the lending by FCS institutions and by commercial banks. Research limitations/implications – Data availability limits the scope of this paper. The authors use state level balance sheet data available for the 1991-2003 period and annual data for 2003-2010 period. An additional regional data set is constructed for 1991-2010 with more aggregated data for the ten USDA agricultural production regions. The small number of panels limits the ability to use more sophisticated econometric models and the choice of dependent variables that captures economic growth. Practical implications – By provides evidence that agricultural finance and in particular lending contribute significantly to the growth of US agriculture, this paper contributes to the policy debate on weather support for agricultural finance initiatives is justified. Originality/value – The authors are not aware of another study that has linked agricultural lending by commercial banks and FCS institutions to growth in rural areas in the USA.
39
Shrestha, R. B., W. Ch Huang, S. Gautam, and T. G. Johnson. "Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal." Agricultural Economics (Zemědělská ekonomika) 62, No. 4 (2016): 181–95. http://dx.doi.org/10.17221/81/2015-agricecon.
Full textAbstract:
Poverty and hunger reduction are intertwined challenges and enduring issues in the world, particularly in developing countries. Improvement in the efficiency in vegetable farming helps the farmers increase the per capita income, reduce poverty and eventually improve the livelihood of smallholder farmers. This paper evaluates economic efficiency of vegetable farms in Nepal using a non-parametric data envelopment analysis (DEA) approach. The results show evidence to suggest that vegetable farms in Nepal have a considerable potential for improving the vegetable production efficiency with a greater access to improved seed, agricultural credit, and training and extension services. Some policies options with regard to the vegetable production technology, and support services for farmers in general and women farmers in particular, are suggested to increase the farm efficiency. While some of these support services are currently available, we suggest that a more focus be given to creating the improved market access, to the women focused extension, and to training packages for the sustainable production. These support services can lead to increases in the farm income and to reduce poverty.
40
Vyasulu, Vinod, and D. Rajasekhar. "Credit for Rural Development: Managerial Reforms in Indian Banks." Development Policy Review 11, no. 4 (1993): 393–412. http://dx.doi.org/10.1111/j.1467-7679.1993.tb00049.x.
Full text
41
Moahid, Masaood, Ghulam Dastgir Khan, Yuichiro Yoshida, Niraj Prakash Joshi, and Keshav Lall Maharjan. "Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?" Sustainability 13, no. 7 (2021): 3758. http://dx.doi.org/10.3390/su13073758.
Full textAbstract:
Access to credit is essential for sustainable agricultural development. This paper evaluates the impact of formal and informal agricultural credit, access to extension services, and different combinations of agricultural credit and extension services on the economic outcomes of farming households in Afghanistan. This study applies a quasi-experimental approach (propensity score matching) and inverse-probability-weighted regression adjustment (IPWRA) analysis. The data comes from a survey of 277 randomly selected farming households in the three districts of rural Afghanistan. The results show that having access to formal agricultural credit has a positive and differentiated impact on the farming costs and net revenue of farming households. However, the effects increase when a farming household has access to both formal credit and extension services. The results also reveal that credit constraints affect farming costs and net revenue. The study provides some practical implications for agricultural development policymakers. First, formal agricultural credit affects farm revenue in rural Afghanistan. Second, the impact of credit bundled with agricultural extension services on farm revenue is higher than the impact of the provision of each service separately. Therefore, a more sustainable agricultural credit arrangement should be supplemented by extension services for farmers in Afghanistan.
42
Linh, Ta, Hoang Long, Le Chi, Le Tam, and Philippe Lebailly. "Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review." Sustainability 11, no. 5 (2019): 1468. http://dx.doi.org/10.3390/su11051468.
Full textAbstract:
Agricultural sectors play an important role in the process of economic development of a country, especially in developing ones. Vietnam is known as an emerging market, which depends directly on agriculture-related activities for their livelihood, in which the issue of rural credit access still remains a confounding problem. The paper focuses on the characteristics of rural credit markets, the determinants of farmer access to the markets, the socio-economic impacts of credit access in Vietnam and briefly comparing with those of some developing countries. This question is addressed by reviewing existing literature and empirical evidence, followed by a comprehensive case study in Vietnam. Comprehensive literature review with secondary data collection and key informant interviews are methods that are applied in this research. The results of this analysis indicate the features of Vietnam markets as participated constraints, government intervention, and segmentation. Other results reveal the significant determinants of credit accessibility. Impacts of credit access on output production, household income, and poverty reduction are highlighted in this paper. Some managerial implications are recommended for households through participation in lending networks; for financial institutions relating to expand target clients as well as capital allocation; and, for policy-makers via ensuring market competitiveness and sustainable development in the long run.
43
Trzeciak-Duval, A. "Agriculture finance and credit infrastructure – conditions, policies and channels." Agricultural Economics (Zemědělská ekonomika) 49, No. 3 (2012): 106–12. http://dx.doi.org/10.17221/5273-agricecon.
Full textAbstract:
Agriculture, like all sectors of the economy, needs credit for its development. Experience in OECD countries demonstrates that in a&nbsp;competitive financial environment, profitable agriculture can obtain the credit it needs. Due to the difficulties faced by farmers in transition economies in obtaining access to credit, the OECD has periodically called upon member and transition experts to reflect upon the issues at stake and to share relevant lessons and best practices in the field of agricultural finance and credit infrastructure. This paper reviews the key messages from past work on this subject, including some observations from the Czech experience. These messages pertain to: the essential framework conditions for access to credit; the role of government policy-making, and possible channels for financing the agriculture and rural sectors. The paper then briefly suggests some linkages and implications that may be drawn between the EU enlargement and these three themes.
44
Gebremariam, Aregawi Gebremedhin. "Hello, I am calling to ask for some money: mobile phones and credit uptake in rural Ethiopia." African Journal of Economic and Management Studies 11, no. 3 (2020): 457–80. http://dx.doi.org/10.1108/ajems-03-2019-0109.
Full textAbstract:
PurposeIt is widely believed that ICT has a significant influence on the daily life of the poor and has positive spillover effects in their livelihoods. Mobile phones are one of the few ICT innovations that have found their way into the hands of the poor residing in remote and rural areas. In Ethiopia, mobile phones are recently introduced but got an acceptance from everyone including the rural poor; in five years’ time, mobile phones subscription has increased from less than 4% to more than 40%. Empirical evidence generally documents the positive role mobile phones play in facilitating the development efforts of poor households. However, using panel data from Ethiopia, the current paper explores a less investigated issue of the possible effects of mobile phone adoption on the credit uptakes of the rural poor who are mostly neglected from the formal credit markets but finance their credit demand from informal sources including relatives/friends.Design/methodology/approachTo investigate the relationship between mobile phones and credit uptake and/or loan size, one can use different empirical strategies. For partly unleashing the endogeneity problem, an instrumental variable estimation approach is adopted in this paper. To deal with the endogeneity problem, one may consider using the linear IV approach or the control function. But the outcome variable and the endogenous variable are binary in nature, and the usual trend is to use the linear IV models or control functions, which do not consider these binary natures of the variables. To this end, a special regressors estimator is adopted, mostly used when both the dependent and the endogenous variables are binary in nature.FindingsThe econometric results suggest mobile phones are positively associated with the credit uptake of rural households, especially credit uptake from informal sources. Households with mobile phones are found to have 4%–14% higher probabilities of credit uptake and about 6%–17% in the case of credit from informal sources. Besides, households with mobile phones are found to have about ETB 65 (USD 3.42) higher loan size and about ETB 78 (USD 4.11) higher amount of loan in the case of a loan from the informal sources. Thus, policy-makers and financial providers working on providing credit in rural areas need to exploit the use of mobile phones in reaching out to the rural poor.Originality/valueThe author attests the fact that the work described has not been published previously and that it is not under consideration for publication elsewhere. Besides, it is the original work of the author.
45
Lam, Bui Thi, Ho Thi Minh Hop, Philippe Burny, Thomas Dogot, Tran Huu Cuong, and Philippe Lebailly. "Impacts of Credit Access on Agricultural Production and Rural Household’s Welfares in Northern Mountains of Vietnam." Asian Social Science 15, no. 7 (2019): 119. http://dx.doi.org/10.5539/ass.v15n7p119.
Full textAbstract:
There is a great consensus on the positive impact of credit access on farmers' incomes and consumption, however, its effect on income inequality among different population segments is still a controversial issue. The paper aims to examine these concerns through using the mixed data collected from the sample of 193 households surveyed (demand-side) and in-depth interviewees with the key credit providers (supply-side) in Lao Cai, the sixth poorest province in Vietnam. At the grass root level, it is evident that better credit access not only significantly positive influences on the effectiveness of agricultural production, but also is the driving force for better structural transition within cultivation versus livestock. Besides this, it enhances both on-farm and off-farm income as well as the well-being of rural households. At the community-impact level, surprisingly, the financial development without agriculture-related supports causes to the negative effect on the distribution of agricultural outcomes and prolongs the inequality in the locality. In addition, an alarm regarding latent social issues has been generating from the preferential credit screen under the community-based lending method. Finally, policy implications are discussed to enhance the effectiveness and outreach of credit in the locality.
46
Feng, Xingyuan, Guangwen He, and Christer Ljungwall. "Rural Financial Reform in China: Progress Made and the Path Forward." Copenhagen Journal of Asian Studies 31, no. 1 (2014): 62–80. http://dx.doi.org/10.22439/cjas.v31i1.4323.
Full textAbstract:
Significant progress has been made in reforming China's rural financial system. Nevertheless, the current institutions are unable to meet the multilayered and diversified demands for rural financial services. Establishing a comprehensive and efficient rural credit system to support the dynamic
 commercial sector of the rural economy, small-scale farming and small and medium-size enterprises is the major challenge in China. This article identifies bottlenecks and suggests policies to develop a well-functioning and sustainable agricultural and rural financial system that would address the diverse needs of the rural and agriculture sectors. To preview the policy recommendations, attention should be given first to legislation and supervision, and then to the corporate governance structure of financial institutions.
47
Liu, Jilu, Qiaoyu Zhang, and Xiaoming Zeng. "Research on the Development of City Financial Systems under the Rural Revitalization Strategy." Journal of Contemporary Educational Research 5, no. 5 (2021): 14–19. http://dx.doi.org/10.26689/jcer.v5i5.2139.
Full textAbstract:
The implementation of the rural revitalization strategy can provide a better solution for problems such as the “three rural” development limitations and the imbalance of urban and rural economic development as it is the key to comprehensive building of a well-off society. Based on Linhai City’s finance status, this article analyzes the financial needs of the city for a better economic development under the rural revitalization strategy which prioritizes the policy of building a city financial system. The city’s financial system should be organized in a multi-level stucture for better economic development. This will improve the credit system of villages and towns, strengthen agricultural product innovation financially, and improve the finances of rural residents.
48
Nkansah Darfor, Kwabena, Martinson Ankrah Twumasi, Selorm Akaba, Michael Kwamega, Gideon Ntim-Amo, and Stephen Ansah. "Determinants of agriculture credit fungibility among smallholder farmers: The case of rural Ghana." International Journal of Agriculture and Natural Resources 48, no. 1 (2021): 1–13. http://dx.doi.org/10.7764/ijanr.v48i1.2235.
Full textAbstract:
This study examined the determinants of rural household agriculture credit fungibility (CF). The study found agricultural CF among farmers, with approximately 79% of farmers involved in agricultural CF. Household financial burden was found to be the main cause of CF among the studied farmers. Most fungible credit was used for clothing and food consumption. A probit model was employed to analyze survey data collected from four regions in Ghana. We employed an instrumental variable approach (IV-Probit) to test for robustness due to endogeneity issues. The econometric model results show that the variables of off-farm income and farm size inversely influenced agricultural CF, while those of education, household size, male farmer gender, and chronic disease variables had a positive effect on agricultural CF. Our findings have policy implications for alleviating agricultural CF.
49
Chisasa, Joseph. "Rural credit markets in South Africa: A review of theory and empirical evidence." Corporate Ownership and Control 12, no. 1 (2014): 363–74. http://dx.doi.org/10.22495/cocv12i1c3p6.
Full textAbstract:
The demand for and supply of financial services in general and credit instruments in particular by rural South Africa still remains a confounding problem. The aim of this paper is to determine the status of rural credit markets in South Africa by reviewing theory and evidence from empirical studies. It is observed that financial markets in South Africa are fragmented between formal and informal markets. Formal financial markets generally serve urban and peri-urban areas with a thin distribution of services to people living in rural areas. Rather, informal financial institutions such as savings clubs (stockvels), co-operatives, moneylenders (mashonisas) and village banks are the more dominant providers of financial services. Commercial banks and other formal financial institutions cite high operating costs such as information gathering, monitoring and enforcement as some of the reasons for limited participation in rural financial markets. Such attitudes have been observed to retard entrepreneurial innovation and growth among small to medium size enterprises and smallholder farmers. Results of this analysis have policy implications in the areas of reduction of unemployment, poverty and sustainable economic growth in South Africa. Policies directed at increasing financial intermediation via formal financial institutions are recommended
50
Aboaba, Kazeem, Damilare Michael Fadiji, and Jamiu Ayomide Hussayn. "Determinants of food security among rural households in Nigeria: USDA food insecurity experience based measurement (forms) approach." Journal of Agribusiness and Rural Development 56, no. 2 (2020): 113–24. http://dx.doi.org/10.17306/j.jard.2020.01295.
Full textAbstract:
This study was carried out to estimate the extent of food security and its determinants among rural households in Nigeria. Data for this study was obtained from 180 rural households consisting of 1260 members through the use of a structured questionnaire. Data was analyzed with a descriptive technique and a less restrictive multinomial logistic regression model. The result found most rural households to be food insecure as they measure high on the food insecurity scale. Age, gender, marital status, access to credit, dependency ratio, household size, ownership of farmland and farming experience significantly influence food security categories. The study concluded that: female-headed married households were more food secure than male-headed households; an increase in age of household heads makes it more likely to be food secure, and so does access to credit facilities; conversely, an increase in family size and in the dependency ratio makes it less likely to be food secure. The study recommends that there should be provision and proper monitoring of credit facilities to small farmers in other to increase their scale of operation and improve their food security status. Also, adequate attention should be given to policy measures that address family planning in order to reduce the household size to a level the household heads can adequately cater for.