Credit Constraints and Agricultural Productivity : Evidence from Rural Rwanda
While potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. We use a direct elicitation approach on a national sample of Rwandan rural households to empirically assess the extent and nature of...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | en_US |
| Published: |
Taylor and Francis
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/18084 |
| Summary: | While potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. We use a direct elicitation approach on a national sample of Rwandan rural households to empirically assess the extent and nature of credit rationing in the semi-formal sector and its impact, using an endogenous switching model. Elimination of all constraints could increase output by some 17 per cent. Implications for policy and research are spelled out. |
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