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Rural Credit Market and the Choice of Tenurial Contracts: A Micro Evidence from Rural West Bengal, India

Author

Listed:
  • Laha, Arindam

    (Lecturer, Department of Commerce, The Un iversity of Burdwan)

  • Kuri, Pravat Kumar

    (Reader, Department of Economics, The University of Burdwan, West Bengal, India.)

Abstract

An attempt has been made in the paper to shed some lights on the economic rationale of the coexistence of alternative tenurial contracts in agrarian institutions. To provide adequate explanations of economic rationale under alternative tenurial contracts, a theore tical conceptualisation has been made to identify the role of credit in contract choices. The theoretical model suggests that choice of a particular contract is determined by the joint influence of credit accessibility of tena nts and the lending potentiality of the landlords. The propositions derived from the model have been tested empirically using firm field data from rural West Bengal under the specification of both Simultaneous and Sequential Choice Models . Empirically both the versions of the empirical model establish the instrumental role of credit in determining the choice of a particular contract among a set of possible contracts

Suggested Citation

  • Laha, Arindam & Kuri, Pravat Kumar, 2010. "Rural Credit Market and the Choice of Tenurial Contracts: A Micro Evidence from Rural West Bengal, India," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 33(4), pages 63-83, December.
    • Handle: RePEc:ris:badest:0507
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    References listed on IDEAS

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    1. Jean-Jacques Laffont & Mohamed Salah Matoussi, 1995. "Moral Hazard, Financial Constraints and Sharecropping in El Oulja," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(3), pages 381-399.
    2. Ananish Chaudhuri & Pushkar Maitra, 1997. "Determinants of Land Tenure Contracts; Theory and Evidence from Rural India," Departmental Working Papers 199710, Rutgers University, Department of Economics.
    3. Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August.
    4. Reid, Joseph D, Jr, 1977. "The Theory of Share Tenancy Revisited-Again," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 403-407, April.
    5. repec:syd:wpaper:9710 is not listed on IDEAS
    6. David M. G. Newbery, 1977. "Risk Sharing, Sharecropping and Uncertain Labour Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 585-594.
    7. Parikshit Ghosh, 1995. "On The Coexistence of Share, Rent and Wage Contracts in a Rural Economy," Boston University - Institute for Economic Development 58, Boston University, Institute for Economic Development.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Laha, Arindam, 2013. "Technical Efficiency In Agricultural Production And Access To Credit In West Bengal, India: A Stochastic Frontier Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(2), pages 1-12, October.
    2. Bidisha, Sayema Haque & Hossain, Md. Amzad & Alam, Rubaiyat & Hasan, Md. Mehedi, 2018. "Credit, tenancy choice and agricultural efficiency: Evidence from the northern region of Bangladesh," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 22-32.
    3. Alem, Habtamu Wandimy & Laha, Arindam, 2021. "Socio-Economic Determinants of Street Children Category and Their Occupational Choice: Evidence from the Regional State of Oromia, Ethiopia," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.

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    More about this item

    Keywords

    Rural Credit Market; Tenurial Contracts; West Bengal; India;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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