A Theory Of Imperfect Competition In Rural Credit Markets In Developing Countries
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Author | : Karla Hoff |
Publisher | : |
Total Pages | : 39 |
Release | : 2003 |
Genre | : |
ISBN | : |
Download A Theory of Imperfect Competition in Rural Credit Markets in Developing Countries Book in PDF, Epub and Kindle
Author | : Karla Ruth Hoff |
Publisher | : |
Total Pages | : 60 |
Release | : 1993 |
Genre | : Bank loans |
ISBN | : |
Download A Theory of Imperfect Competition in Rural Credit Markets in Developing Countries Book in PDF, Epub and Kindle
Author | : Avishay Braverman |
Publisher | : World Bank Publications |
Total Pages | : 44 |
Release | : 1995 |
Genre | : |
ISBN | : |
Download Rural credit in developing countries Book in PDF, Epub and Kindle
Author | : Patrick Avato |
Publisher | : GRIN Verlag |
Total Pages | : 23 |
Release | : 2005-06-13 |
Genre | : Business & Economics |
ISBN | : 3638386848 |
Download Banks, Informal Money Lenders and Asymmetric Information Book in PDF, Epub and Kindle
Seminar paper from the year 2005 in the subject Economics - Monetary theory and policy, grade: A= 1,0, Johns Hopkins University (School of Advanced International Studies (SAIS)), course: Theories and Models of Economic Development, language: English, abstract: Credit markets in developing countries differ substantially from their counterparts in OECD countries. Apart from the obvious differences in institutional development, technology and productivity which are both measures for and causes of underdevelopment, typ ical LDC credit markets have two main characteristics. Firstly, their financial systems are very small compared those in industrial economies. Secondly, developing countries are characterized by very big informal financial sectors that coexist with formal credit institutions. Interestingly, credit contracts differ highly between these two sectors and there seems to be only very limited inter-sector competition. The following paper ventures to explain the persistence of these peculiarities in rural credit markets1 using the model of asymmetric information in credit markets developed by Stiglitz and Weiss. By applying the model specifically to LDC credit markets I show that asymmetric information is among the major reasons for the underdevelopment of rural credit markets. Building on these findings I then explain how Microfinance Institutions (MFI) have lately been able to overcome some of the problems of imperfect information and strive in markets formerly dominated by informal money lenders. The first part of this paper provides an overview of the typical characteristics of credit markets in developing countries, concentrating on the limited size of LDC credit markets and on the apparent dichotomy between formal and informal finance sectors. Then, the importance of financial systems for economic development is briefly outlined in order to explain the relevance of the topic of this essay. The main part of the paper then presents the model of asymmetric information in credit markets pioneered by Stiglitz/Weiss as a possible explanation for the causal origins of these characteristics. The last part shows how successful microfinance institutions may succeed in operating in rural credit markets by their ability to overcome problems of imperfect information.
Author | : Avishay Braverman |
Publisher | : |
Total Pages | : 37 |
Release | : 1986 |
Genre | : |
ISBN | : |
Download Rural Credit Markets and Institutions in Developing Countries Book in PDF, Epub and Kindle
Author | : Patrick Avato |
Publisher | : GRIN Verlag |
Total Pages | : 29 |
Release | : 2012-05 |
Genre | : Business & Economics |
ISBN | : 3656180865 |
Download Banks, Informal Money Lenders and Asymmetric Information Book in PDF, Epub and Kindle
Seminar paper from the year 2005 in the subject Economics - Monetary theory and policy, grade: A= 1,0, Johns Hopkins University (School of Advanced International Studies (SAIS)), course: Theories and Models of Economic Development, 29 entries in the bibliography, language: English, abstract: Credit markets in developing countries differ substantially from their counterparts in OECD countries. Apart from the obvious differences in institutional development, technology and productivity which are both measures for and causes of underdevelopment, typ ical LDC credit markets have two main characteristics. Firstly, their financial systems are very small compared those in industrial economies. Secondly, developing countries are characterized by very big informal financial sectors that coexist with formal credit institutions. Interestingly, credit contracts differ highly between these two sectors and there seems to be only very limited inter-sector competition. The following paper ventures to explain the persistence of these peculiarities in rural credit markets1 using the model of asymmetric information in credit markets developed by Stiglitz and Weiss. By applying the model specifically to LDC credit markets I show that asymmetric information is among the major reasons for the underdevelopment of rural credit markets. Building on these findings I then explain how Microfinance Institutions (MFI) have lately been able to overcome some of the problems of imperfect information and strive in markets formerly dominated by informal money lenders. The first part of this paper provides an overview of the typical characteristics of credit markets in developing countries, concentrating on the limited size of LDC credit markets and on the apparent dichotomy between formal and informal finance sectors. Then, the importance of financial systems for economic development is briefly outlined in order to explain the relevance of the topic of this essay. The main part of the paper then pre
Author | : Sagrario L Floro |
Publisher | : Routledge |
Total Pages | : 164 |
Release | : 2019-03-07 |
Genre | : Political Science |
ISBN | : 0429694792 |
Download Informal Credit Markets And The New Institutional Economics Book in PDF, Epub and Kindle
The conventional wisdomaboutcreditmarketshas been radically alteredin recent years through the introduction of elements of moral hazard,adverseselectionofrisk,and quality-price relationships. Important empiricalstudies have been published which are leading to vastly different policyimplications. This analysis has not been explicitly extended to informalcredit markets so far, although it is widely recognized that credit transactedoutside the banking circuit is quantitatively huge and qualitatively critical,especially in developing countries.This book combines the new theoretical approach to credit markets withcertain precepts of the New Institutional Economics in order to analyzeinformal credit markets. While the formal financial institutions in developingcountries carry out credit transactions within the limits set by the marketenvironment and by government policies, informal institutions evolve by aparticular selection of modes of economic behavior which are responses tointrinsic imperfections of the market. The informal sector enhances trust bymakingexistingtiesanintegralcomponentofcreditcontracts:thecontractualcomponent of informal credit capitalizes on the personalistic (social andeconomic) relationships between the transacting parties.
Author | : Xiangping Jia |
Publisher | : Peter Lang |
Total Pages | : 172 |
Release | : 2008 |
Genre | : Banks and banking |
ISBN | : 9783631582855 |
Download Credit Rationing and Institutional Constraint Book in PDF, Epub and Kindle
The availability of credit has long occupied a central place in development strategies. Rural credit institutions are more than an instrument of intermediation, they also handle risk, mobilize and disseminate information about market and technology. Given the informational problems and innate disadvantages of rural credit markets, the rationale for laissez-faire and liberalization is by no means based on a sound understanding of the state's role in redressing market failures. This study examines the rural credit market in China, its impacts on agricultural transformation and the state's role in the functioning of markets. The particular objectives are to identify the determinants of credit rationing in both formal and informal sectors, to show the extent of credit rationing, to reveal the dynamic role of institutional lending in agricultural transformation, and to understand the challenges in developing efficient institutions.
Author | : Alexander Sarris |
Publisher | : Food & Agriculture Org. |
Total Pages | : 156 |
Release | : 1996 |
Genre | : Business & Economics |
ISBN | : |
Download Rural Informal Credit Markets and the Effectiveness of Policy Reform Book in PDF, Epub and Kindle
Author | : Von Pischke, J. D. |
Publisher | : Johns Hopkins University Press |
Total Pages | : 464 |
Release | : 1983 |
Genre | : Business & Economics |
ISBN | : |
Download Rural Financial Markets in Developing Countries Book in PDF, Epub and Kindle
Until recently the use of agricultural credit as a developmental tool seemed clear and straightforward. Most concerned people believed that increases in the volume of cheap credit were necessary to boost agricultural production, and that the rural poor could be brought into the mainstream of development through supervised credit programs. It seemed that certain ideal types of rural credit institutions offered the promise of meeting farmers' credit needs, and that experience in the industrialized countries with cooperatives and specialized agricultural finance institutions could be effectively transplanted to low-income countries. This collection of readings highlights facets of rural financial markets that have often been neglected in discussions of agricultural credit in developing countries. It moves beyond a narrow concern with the simple provision of credit to a broad consideration of the performance of rural financial markets and of ways to improve the quality and range of financial services for low-income farmers. It reflects new thinking on the design, administration, evaluation and policy framework of rural finance and credit programs in developing countries.