IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Agricultural production credit clubs in Armenia: facilitating investment through market linkages, social capital, and microcredit

  • Hamish R. Gow
  • Aleksan Shanoyan
  • Lilya Abrahamyan
  • Mariana Alesksandryan
Registered author(s):

    Armenia’s 1991 privatization and land redistribution process handed ownership and control of agricultural production to over 300,000 inexperienced, financially distressed, subsistence farmers operating extremely small fragmented plots, and the processing sector to similarly distressed managers. As seen elsewhere across Eastern Europe, the result was chaotic turmoil characterized by pervasive delayed payments, massive disinvestment, and rapid output declines. However, unlike elsewhere, Armenia could not rely upon the entry of FDI to correct channel incentives and revitalize its agricultural and rural financial markets. Instead, an alternative exogenous stimulus was required. This study analyzes the instrumental case of how a quasi-public third party, the USDA Market Assistance Program and Agricultural Production Credit Clubs, successfully imitated FDI-induced incentive structures through market linkages, social capital, and microcredit to establish economically sustainable marketing channels. The findings provide important insights into the design of market-linked microcredit programs.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:;jsessionid=43AE8F21925462C6AD91A4975FB7E4CD?contentType=Article&contentId=1784594
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

    Volume (Year): 66 (2006)
    Issue (Month): 2 (September)
    Pages: 316-329

    in new window

    Handle: RePEc:eme:afrpps:v:66:y:2006:i:2:p:316-329
    Contact details of provider: Web page:

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eme:afrpps:v:66:y:2006:i:2:p:316-329. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.