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The Effect of Ownership Rights on Urban Households' Access to Credit in Lahore

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  • Misha Saleem

    ()
    (Lahore School of Economics, Pakistan.)

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    Abstract

    Land titling and ownership rights have recently been advocated in policy circles as a powerful tool for poverty reduction. The lack of formal titling prevents the use of property as collateral, and hence prevents the capital embedded in these assets from being "unlocked." Some studies show a fairly insignificant relationship between informal loans and property rights, while others indicate a significant positive relationship between formal loans (credit cards, bank loans, etc.) and land ownership. The objective of this article is to look at the impact of owned titled land on formal and informal loans among urban households in Lahore. Here, formal loans are seen in terms of bank loans and credit cards while informal loans are characterized as loans taken from relatives, friends, or local moneylenders. The findings suggest that land ownership has a positive and significant relationship with formal loans but no relationship with either bank loans or informal loans alone.

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    Bibliographic Info

    Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

    Volume (Year): 16 (2011)
    Issue (Month): 2 (Jul-Dec)
    Pages: 111-139

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    Handle: RePEc:lje:journl:v:16:y:2011:i:2:p:111-139

    Contact details of provider:
    Postal: Intersection Main Boulevard Phase VI DHA and Burki Road, Lahore
    Phone: (92-42) 6560939
    Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx
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    Related research

    Keywords: Property rights; land ownership; credit access; formal loans; urban households.;

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    References

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