Credit rationing in rural credit markets of India

被引:24
|
作者
Chaudhuri, Kausik [1 ,2 ]
Cherical, Mary M. [3 ]
机构
[1] Univ Leeds, Dept Econ, Sch Business, Leeds LS2 9JT, W Yorkshire, England
[2] Madras Sch Econ, Madras 600025, Tamil Nadu, India
[3] Indira Gandhi Inst Dev Res, Bombay 400065, Maharashtra, India
关键词
D O I
10.1080/00036846.2010.524627
中图分类号
F [经济];
学科分类号
02 ;
摘要
This article analyses the prevalent situation of the formal Financial Institutions (FIs) in rural India using data from National Sample Survey 54th Round (January-June, 1998). We use sample selectivity model to examine the sanction of the loan by the FIs as a two-stage process. We model the choice of the household's credit requirement using an unordered choice model, namely, a multinomial logit model. Our results reveal that the rural households are considerably credit constrained. The households who do not have an account in a FI have a lower chance of obtaining the loan and households who are credit constrained have relatively lower land holding and they do not possess livestock. Households who borrow for nonfarm purpose exhibit a lower chance of obtaining credit compared to those households who borrow for farm business. Village level infrastructure plays an important role in determining the credit rationing behaviour in rural India.
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页码:803 / 812
页数:10
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