Credit Concentration of Brazilian Rural Activities
This paper aims to analyze the degree of concentration of loans allocated to agricultural and livestock activities in Brazil from 2000 to 2009, and to assess the distribution pattern of rural credit among the Brazilian states. The major motivation is to investigate if the volume of available credit is proportional to states share of agricultural production and harvest areas, and states share herd regarding livestock. The results suggest that rural credit still remains concentrated in states of the Southern and Southeastern regions, although there have been a credit decentralization during the current decade in favor of agricultural frontier in parts of Central and North regions of Rural Brazil. The conclusions suggest that transport and energy infra-structure promoted by local and national governments have been fundamental to expand the potential economic growth as well as the demand for rural credit in those regions.
|Date of creation:||Sep 2011|
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