IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/wp2010-12-02.html
   My bibliography  Save this paper

How have Government Policies Driven Rural Credit in India: A Brief Empirical Analysis, 1969-2009

Author

Listed:
  • Pal, Debdatta
  • Sapre, Amey

Abstract

This paper makes a modest attempt to identify structural breaks in outstanding credit of rural branches of Scheduled Commercial Banks in India during the period of 1969 to 2009. With the use of endogenous method, we find three possible structural shifts in growth, i.e. 1981, 1989 and 1999 and thus four different regimes of growth and performance. These structural changes are analyzed with respect to branch licensing policy and priority sector lending by the Schedule Commercial Banks. Empirical evidence and growth performance shows that such policies have been instrumental in changing the off-take of rural credit in a significant way. The study also finds corroborative evidence of break dates and growth performance in evaluating the outcomes of the prevailing banking policies.

Suggested Citation

  • Pal, Debdatta & Sapre, Amey, 2010. "How have Government Policies Driven Rural Credit in India: A Brief Empirical Analysis, 1969-2009," IIMA Working Papers WP2010-12-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp2010-12-02
    as

    Download full text from publisher

    File URL: https://web.iima.ac.in/assets/snippets/workingpaperpdf/2010-12-02Debdatta.pdf
    File Function: English Version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Zeileis, Achim & Leisch, Friedrich & Hornik, Kurt & Kleiber, Christian, 2002. "strucchange: An R Package for Testing for Structural Change in Linear Regression Models," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 7(i02).
    2. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    3. Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
    4. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
    5. Jushan Bai, 1997. "Estimation Of A Change Point In Multiple Regression Models," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 551-563, November.
    6. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp2010-12-02. 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: (). General contact details of provider: http://edirc.repec.org/data/eciimin.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.