Structure of the Credit Market and its link with the other Markets-An Analysis of Village Survey Data in Bangladesh
AbstractThis paper discusses the structure and operation of different credit markets in two different villages of Bangladesh. As a prelude to the issue, the study, reviews the current literature on farmer's choice of loan and its impact on technological innovation in agricultural practices. The analysis indicates that informal credit markets are an important part of credit markets in both the villages. The study found a variety of linked credit transactions involving credit-land, credit-land tenure, credit crop, and crob-crop. The study reveals that large borrowers are not as affected by transactions cost as the small borrowers. Thus, small borrowers pay higher effective interest rate as compared to large farm borrowers in the formal market.
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Bibliographic InfoArticle provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 28 (1993)
Issue (Month): 1 (January)
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Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
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- Jayraman, Raji & Lanjouw, Peter, 1998.
"The evolution of poverty and inequality in Indian villages,"
Policy Research Working Paper Series
1870, The World Bank.
- Jayaraman, Rajshri & Lanjouw, Peter, 1999. "The Evolution of Poverty and Inequality in Indian Villages," World Bank Research Observer, World Bank Group, vol. 14(1), pages 1-30, February.
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