Publication:
Credit Constraints, Agricultural Productivity, and Rural Nonfarm Participation : Evidence from Rwanda

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dc.contributor.authorDuponchel, Marguerite
dc.contributor.authorAli, Daniel Ayalew
dc.contributor.authorDeininger, Klaus
dc.date.accessioned2014-03-18T20:04:31Z
dc.date.available2014-03-18T20:04:31Z
dc.date.issued2014-02
dc.description.abstractAlthough the potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. This study uses a direct elicitation approach for a national sample of Rwandan rural households to assess empirically the extent and nature of credit rationing in the semi-formal sector and its impact using an endogenous sample separation between credit-constrained and unconstrained households. Being credit constrained reduces the likelihood of participating in off-farm self-employment activities by about 6.3 percent while making participation in low-return farm wage labor more likely. Even within agriculture, elimination of all types of credit constraints in the semi-formal sector could increase output by some 17 percent. Two suggestions for policy emerge from the findings. First, the estimates suggest that access to information (education, listening to the radio, and membership in a farm cooperative) has a major impact on reducing the incidence of credit constraints in the semi-formal credit sector. Expanding access to information in rural areas thus seems to be one of the most promising strategies to improve credit access in the short term. Second, making it easy to identify land owners and transfer land could also significantly reduce transaction costs associated with credit access.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/02/18910977/credit-constraints-agricultural-productivity-rural-nonfarm-participation-evidence-rwanda
dc.identifier.doi10.1596/1813-9450-6769
dc.identifier.urihttps://hdl.handle.net/10986/17305
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6769
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CAPITAL
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO INFORMATION
dc.subjectADVERSE SELECTION
dc.subjectAGRICULTURAL COMMODITIES
dc.subjectAGRICULTURAL FINANCE
dc.subjectAGRICULTURAL PRACTICES
dc.subjectAGRICULTURE
dc.subjectAMOUNT OF LOAN
dc.subjectASSET OWNERSHIP
dc.subjectASSETS
dc.subjectBANK ACCOUNT
dc.subjectBANK LOAN
dc.subjectBANK POLICY
dc.subjectBORROWING CONSTRAINTS
dc.subjectCAPITAL MARKET
dc.subjectCOLLATERAL FOR LOANS
dc.subjectCOLLATERAL REQUIREMENTS
dc.subjectCOLLATERAL RISK
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCONSUMER DURABLES
dc.subjectCREDIT ACCESS
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDIT RATIONING
dc.subjectCREDIT UNIONS
dc.subjectDEMAND FOR CREDIT
dc.subjectDEMAND-SIDE FACTORS
dc.subjectDEPENDENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISEQUILIBRIUM
dc.subjectDURABLE
dc.subjectDURABLE ASSETS
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRIC EVIDENCE
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC OUTCOMES
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMICS
dc.subjectEMPLOYMENT
dc.subjectENTRY BARRIERS
dc.subjectEQUILIBRIUM CREDIT RATIONING
dc.subjectEXCESS DEMAND
dc.subjectEXPENDITURE
dc.subjectEXPORTS
dc.subjectFINANCIAL DEEPENING
dc.subjectFINANCIAL MARKETS
dc.subjectFORMAL LOANS
dc.subjectFORMS OF CREDIT
dc.subjectGDP
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSING
dc.subjectINCENTIVE EFFECTS
dc.subjectINCOME
dc.subjectINCOME INEQUALITY
dc.subjectINCOME SHOCKS
dc.subjectINDEBTED
dc.subjectINFORMAL BORROWING
dc.subjectINFORMAL CREDIT
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINSURANCE MARKET
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE RESTRICTIONS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINVESTMENT PURPOSES
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLACK OF COLLATERAL
dc.subjectLAND AS COLLATERAL
dc.subjectLAND OWNERSHIP
dc.subjectLAND PARCELS
dc.subjectLAND TENURE
dc.subjectLAND TITLING
dc.subjectLAND USE
dc.subjectLENDERS
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOAN AMOUNT
dc.subjectLOAN AMOUNTS
dc.subjectLOAN APPLICATION
dc.subjectLOAN APPLICATIONS
dc.subjectLOAN MARKET
dc.subjectLOAN TERMS
dc.subjectLOANABLE FUNDS
dc.subjectLOANS FROM FAMILY
dc.subjectLOSS OF COLLATERAL
dc.subjectLOW INTEREST RATES
dc.subjectMARKET ACCESS
dc.subjectMAXIMUM LIKELIHOOD ESTIMATION
dc.subjectMAXIMUM LIKELIHOOD METHOD
dc.subjectMICRO-FINANCE
dc.subjectMICRO-FINANCE INSTITUTIONS
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMISSING MARKETS
dc.subjectMOBILE PHONE
dc.subjectMONEY LENDER
dc.subjectMONEYLENDERS
dc.subjectOPPORTUNITY COST
dc.subjectPAYOFFS
dc.subjectPERMANENT INCOME
dc.subjectPORTFOLIO
dc.subjectPORTFOLIOS
dc.subjectPOTENTIAL BORROWERS
dc.subjectPRODUCTIVITY
dc.subjectPROFITABILITY
dc.subjectPROPERTY RIGHTS
dc.subjectREGRESSION MODELS
dc.subjectREMITTANCES
dc.subjectREPAYMENT
dc.subjectRESOURCE ALLOCATION
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectRURAL CREDIT
dc.subjectRURAL CREDIT MARKETS
dc.subjectRURAL FINANCIAL MARKETS
dc.subjectSAVINGS
dc.subjectSMALLHOLDER AGRICULTURE
dc.subjectSOCIAL CAPITAL
dc.subjectSOCIAL NETWORKS
dc.subjectSOURCE OF CREDIT
dc.subjectSUPPLY OF CREDIT
dc.subjectTITLES
dc.subjectTRANSACTION
dc.subjectTRANSACTION COST
dc.subjectTRANSACTION COSTS
dc.subjectTRANSITORY INCOME
dc.subjectVALUE OF OUTPUT
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWEALTH EFFECTS
dc.titleCredit Constraints, Agricultural Productivity, and Rural Nonfarm Participation : Evidence from Rwandaen
dspace.entity.typePublication
okr.crossref.titleCredit Constraints, Agricultural Productivity, and Rural Nonfarm Participation: Evidence from Rwanda
okr.date.disclosure2014-02-01
okr.date.doiregistration2025-04-10T11:39:01.898475Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/02/18910977/credit-constraints-agricultural-productivity-rural-nonfarm-participation-evidence-rwanda
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.guid501541468306236166
okr.identifier.doi10.1596/1813-9450-6769
okr.identifier.externaldocumentum000158349_20140206083800
okr.identifier.internaldocumentum18910977
okr.identifier.reportWPS6769
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/02/06/000158349_20140206083800/Rendered/PDF/WPS6769.pdfen
okr.region.administrativeAfrica
okr.region.countryRwanda
okr.sectorAgriculture, fishing, and forestry
okr.sectorPublic Administration, Law, and Justice::General public administration sector
okr.sectorFinance::Housing finance and real estate markets
okr.themeRural development :: Rural markets
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicMacroeconomics and Economic Growth
okr.unitAgriculture and Rural Development Team, Development Research Group
okr.volume1 of 1
relation.isAuthorOfPublication222ae66b-b10f-58d1-892a-56c27c73ba84
relation.isAuthorOfPublication68546f99-84de-5466-be55-9170c38603e2
relation.isAuthorOfPublication.latestForDiscovery68546f99-84de-5466-be55-9170c38603e2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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