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The Distribution of Subsidized Agricultural Credit in Brazil: Do Interest Groups Matter?

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  • Steven M. Helfand

Abstract

This article examines the unequal distribution of credit and credit subsidies in the Brazilian agricultural sector from 1969 to 1990. Total credit subsidies exceeded US$ 40 billion in this period. The distribution across crops is studied econometrically. After controlling for area, the crops that benefited most had superior access to credit institutions, were tradeable, had high prices, and were not perennials. Proxies for collective action by crop were an unimportant determinant of credit policy, while a bias in favour of large producers was evident. Alternative explanations for this bias are discussed, including collective action by farm size and transaction costs in lending.

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  • Steven M. Helfand, 2001. "The Distribution of Subsidized Agricultural Credit in Brazil: Do Interest Groups Matter?," Development and Change, International Institute of Social Studies, vol. 32(3), pages 465-490, June.
    • Handle: RePEc:bla:devchg:v:32:y:2001:i:3:p:465-490
    DOI: 10.1111/1467-7660.00213
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    Cited by:

    1. Ghinoi, S. & Piras, S. & Wesz, V.J.J., 2018. "Political debates and agricultural financing policies. Evaluating the crea-tion of Brazil s Pronaf through Discourse Network Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277274, International Association of Agricultural Economists.
    2. Ghinoi, Stefano & Wesz Junior, Valdemar João & Piras, Simone, 2018. "Political debates and agricultural policies: Discourse coalitions behind the creation of Brazil’s Pronaf," Land Use Policy, Elsevier, vol. 76(C), pages 68-80.
    3. Steven M. Helfand & Gervásio Castro de Rezende, 2004. "The Impact of Sector‐Specific and Economy‐Wide Policy Reforms on the Agricultural Sector in Brazil: 1980–98," Contemporary Economic Policy, Western Economic Association International, vol. 22(2), pages 194-212, April.
    4. Gloria Gonzalez-Rivera & Steven Helfand, 2007. "Economic Development and the Determinants of Spatial Integration in Agricultural Markets," Working Papers 201437, University of California at Riverside, Department of Economics.

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