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Micro-Finance and Credit Access in the Agricultural Sector of Nicaragua

Author

Listed:
  • Ana C Rostran Molina
  • Anindya Banerjee
  • Federico Lampis

Abstract

The primary goal of this paper is to examine credit access of farmers in Nicaragua. We identify the primary factors determining their probability of securing a loan. We are also concerned with understanding the impact on agricultural sector of the large number of micro-finance institutions (MFIs) operating in the country. Multiple correspondence analysis is used and several logit models are estimated. The results indicate that poor farmers face serious problems regarding financing, despite the extended presence of MFIs. In particular, uncertainty in property rights and low levels of education are severe constraints when farmers try to secure financing.

Suggested Citation

  • Ana C Rostran Molina & Anindya Banerjee & Federico Lampis, 2015. "Micro-Finance and Credit Access in the Agricultural Sector of Nicaragua," Discussion Papers 15-04, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:15-04
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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