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What's Wrong with Romanian Rural Finance? Understanding the Determinants of Private Farmers' Access to Credit

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Author Info
Junior R Davis
Angela Gaburici
Paul G. Hare

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Abstract

This analysis of the determinants of private farmer access to rural finance in Romania has two distinct aspects: (i) a quantitative evaluation of some measurable variables for example factors affecting the amount of loans and the volume of savings; and (ii) a qualitative aspect, concentrating on the relationship between financial service suppliers and private farmers. We also consider the motivations underlying the participation or non-participation of private farmers in the development of the rural financial market. We have estimated two regression models: a) to determine the main characteristics of the private farms that have access to formal credit; and b) to estimate how farm income, the source and utilization of credit each impact on the actual loan amounts obtained. The paper attempts at all times to reflect the problems that farmers have highlighted in gaining access to rural finance in the results of our analysis.

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File URL: http://www.som.hw.ac.uk/cert/wpa/1998/dp9808.pdf
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Publisher Info
Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 9808.

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Date of creation: 1998
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Handle: RePEc:hwe:certdp:9808

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Web page: http://www.som.hw.ac.uk/cert/
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Related research
Keywords: Rural finance; private farming and logistic regression.;

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Find related papers by JEL classification:
D4 - Microeconomics - - Market Structure and Pricing
Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
R51 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
G20 - Financial Economics - - Financial Institutions and Services - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Junior R Davis & Angela Gaburici, 1998. "The Economic Activity of Private Farms in Romania during Transition. Just how competitive are they?," CERT Discussion Papers 9807, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
  2. J.R. Davis & P.G. Hare, 1997. "Reforming the Systems of Rural Finance Provision in Romania: Some Options for Privatisation and Change," CERT Discussion Papers 9713, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
  3. Heidhues, Franz & Davis, Junior R & Schrieder, Gertrud, 1998. "Agricultural Transformation and Implications for Designing Rural Financial Policies in Romania," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 25(3), pages 351-72.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Junior R Davis & Angela Gaburici, 1998. "The Economic Activity of Private Farms in Romania during Transition. Just how competitive are they?," CERT Discussion Papers 9807, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
  2. Dirk J. Bezemer, 2000. "Limitations on De-collectivisation in Central European Agriculture," Tinbergen Institute Discussion Papers 00-037/2, Tinbergen Institute. [Downloadable!]
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