Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda

Ali, Daniel Ayalew; Deininger, Klaus; Duponchel, Marguerite

doi:10.1080/00220388.2014.887687

Cited by 101 publications

(88 citation statements)

References 26 publications

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“…Thus, rural households with higher levels of education are less likely to suffer from credit constraints. This negative impact of education level on the probability of credit constraint was also found by Akram and Hussain [37] in their study of rural households in 16 districts of Pakistan and by Ali, Deininger [36] in Rwanda.…”

Section: Factors Affecting Credit Constraint From Formal Credit Sourcessupporting

confidence: 74%

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Rural Credit Constraint and Informal Rural Credit Accessibility in China

et al. 2019

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This paper investigates the effects of rural households’ demographic characteristics on formal credit constraint, and explores the relationship between informal and formal lending in rural China. Using 2013 China’s Household Finance survey data, the authors apply probit regression models to investigate the effects of demographic factors on formal credit constraint and the household’s decision to borrow from informal credit sources. In addition, the endogenous switching regression model is applied to evaluate the impact of credit constraint on the welfare of rural farm households. The empirical evidence confirms that age, family size, annual household nonagricultural income, level of education, and history of informal borrowing have significant influence over credit constraint. Moreover, annual household nonagricultural income, the presence of children, borrowing from social networks and monthly communication expenses significantly impact rural households’ decision to utilise informal borrowing. Results from the endogenous switching regression model suggest that credit constraint by formal credit sources has no impact on household consumption.

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Section: Factors Affecting Credit Constraint From Formal Credit Sourcessupporting

confidence: 74%

“…More highly educated rural households generally have a greater ability to create wealth [12,31]. It is also assumed that they allocate credit more efficiently [7,36]. Thus, rural households with higher levels of education are less likely to suffer from credit constraints.…”

Section: Factors Affecting Credit Constraint From Formal Credit Sourcesmentioning

confidence: 99%

Rural Credit Constraint and Informal Rural Credit Accessibility in China

et al. 2019

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“…Recent research shows that 78%ofthe coffee farmers were constrained to access credit services while 52% were excluded from financial services all together. The lack of collateral to offer has discouraged smallholder farmers from accessing credit (Ali, Deininger, & Duponchel, 2014).Different authors such as Malimba and Ganesan (2010) have raised the problem of repayment behavior in Credit and Savings Cooperative Societies and Financial Services Consumption Constraints in Rwanda, but none has discussed about determinants of credit accessibility to smallholder farmers. This study identified and filled in the gap on the institutional factors influencing credit accessibility among smallholder coffee farmers in Gisagara District, Rwanda.…”

Section: Introductionmentioning

confidence: 99%

Institutional Factors Influencing the Decision to Take Financial Credits among Small Holder Coffee Farmers in Rwanda

Mpirwa

Mburu

Mulyungi

et al. 2018

int.jour.sci.res.mana

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Though, a lot of emphasis has been put to decentralize financial institutions to offer agricultural credit, access to credit in many rural households in Rwanda remains limited, so far no study done in the study area on institutional factors influencing the decision to take credit. This study investigated the institutional factors influencing the decision to take credit among smallholder coffee farmers in Gisagara District, Southern Province of Rwanda. A Multi stage sampling techniques was employed to select respondents. Primary data were drawn from222 smallholder farmers using structured questionnaires.Binary logistic regression was employed to estimate the data. The results indicated that the institutional factors which influenced access to credit were cooperative membership, extension services, information on credit use, fear take risk and distance to coffee washing station. Based on the findings of the study, recommended that in order to increase access to use agricultural credit there is need to focus in organizing coffee producers in cooperatives, strengthen the current strategies of extension, education and infrastructural services particularly for road transport.

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“…As discussed earlier, there is substantial evidence that income risks deter poor farmers from adopting higher-return, but riskier, crops or technologies. There is also evidence that income risks may act as significant barriers for poor households to enter high-return, high-risk nonagricultural activities (Ali et. al.…”

Section: Resultsmentioning

confidence: 99%

Subjective Income Expectations And Risks In Rural India

Kumar¹

2019

The Journal of Developing Areas

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provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research.

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Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda

Cited by 101 publications

References 26 publications

Rural Credit Constraint and Informal Rural Credit Accessibility in China

Rural Credit Constraint and Informal Rural Credit Accessibility in China

Institutional Factors Influencing the Decision to Take Financial Credits among Small Holder Coffee Farmers in Rwanda

Subjective Income Expectations And Risks In Rural India

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