Formal and Informal Credit Markets in Egypt
This paper examines empirically the markets for formal and informal credit in Egypt. Using a dataset specifically collected for the purpose, it examines what factors determine whether or not a person borrows from the informal sector using a probit analysis. The paper then conducts a similar exercise for the informal financial sector and seeks to examine whether any link between borrowing in the formal and the informal financial sectors exists. Conclusions are then drawn as to the role of informal financial markets in the development process.
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