Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda
Smallholder agriculture in many developing countries has remained largely self-financed. However, improved productivity for attaining greater food security requires better access to institutional credit. Past efforts to extend institutional credit...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19705737/institutional-finance-matter-agriculture-evidence-using-panel-data-uganda http://hdl.handle.net/10986/18827 |
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okr-10986-18827 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT ACCESS TO INFORMATION ACCESS TO LENDERS ACCESSIBILITY AGRICULTURAL ACTIVITY AGRICULTURAL BANKS AGRICULTURAL CREDIT AGRICULTURAL ECONOMICS AGRICULTURAL FINANCE AGRICULTURAL MARKETS AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURE ASSETS AVAILABILITY OF CREDIT BANK CREDIT BANKS BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL CREDIT CONTRACTUAL RELATIONS COOPERATIVE CREDIT COOPERATIVE LENDING COOPERATIVES CREDIT ACCESS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT COOPERATIVE CREDIT DELIVERY CREDIT FACILITY CREDIT MARKET CREDIT MARKET ACCESS CREDIT MARKETS CREDIT PROGRAMS CREDIT SCHEMES DEBT DEMAND FOR CREDIT DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISEQUILIBRIUM DIVERSIFICATION EARNINGS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EMPLOYER ENDOWMENTS ENTREPRENEURS ETHNIC GROUPS EXCLUSION EXPENDITURE FARM ENTERPRISES FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SERVICES FORMAL BANKS FORMAL FINANCE FORMS OF CREDIT GDP GENDER GROSS DOMESTIC PRODUCT HOMEOWNERSHIP HOUSEHOLD INCOME HOUSEHOLDS HOUSING INFLATION INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR FORCE LABOR MARKET LABOR SUPPLY LACK OF ACCESS LIMITED ACCESS LINES OF CREDIT LIQUIDITY LOAN LOANS TO FARMERS LOCAL FINANCIAL INSTITUTIONS MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MONEYLENDERS MOTIVATION POINT-OF-SALE POLITICAL ECONOMY PRODUCTION CREDIT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS RURAL CREDIT RURAL CREDIT COOPERATIVES RURAL FINANCE RURAL FINANCIAL SERVICES SAVINGS SELF-EMPLOYMENT SMALLHOLDER SMALLHOLDER AGRICULTURE SMALLHOLDER FARMERS SMALLHOLDERS SMOOTHING CONSUMPTION SOURCES OF INCOME SUPPLY CHAINS UNION URBAN AREAS VILLAGE VILLAGES WAGES |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO INFORMATION ACCESS TO LENDERS ACCESSIBILITY AGRICULTURAL ACTIVITY AGRICULTURAL BANKS AGRICULTURAL CREDIT AGRICULTURAL ECONOMICS AGRICULTURAL FINANCE AGRICULTURAL MARKETS AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURE ASSETS AVAILABILITY OF CREDIT BANK CREDIT BANKS BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL CREDIT CONTRACTUAL RELATIONS COOPERATIVE CREDIT COOPERATIVE LENDING COOPERATIVES CREDIT ACCESS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT COOPERATIVE CREDIT DELIVERY CREDIT FACILITY CREDIT MARKET CREDIT MARKET ACCESS CREDIT MARKETS CREDIT PROGRAMS CREDIT SCHEMES DEBT DEMAND FOR CREDIT DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISEQUILIBRIUM DIVERSIFICATION EARNINGS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EMPLOYER ENDOWMENTS ENTREPRENEURS ETHNIC GROUPS EXCLUSION EXPENDITURE FARM ENTERPRISES FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SERVICES FORMAL BANKS FORMAL FINANCE FORMS OF CREDIT GDP GENDER GROSS DOMESTIC PRODUCT HOMEOWNERSHIP HOUSEHOLD INCOME HOUSEHOLDS HOUSING INFLATION INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR FORCE LABOR MARKET LABOR SUPPLY LACK OF ACCESS LIMITED ACCESS LINES OF CREDIT LIQUIDITY LOAN LOANS TO FARMERS LOCAL FINANCIAL INSTITUTIONS MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MONEYLENDERS MOTIVATION POINT-OF-SALE POLITICAL ECONOMY PRODUCTION CREDIT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS RURAL CREDIT RURAL CREDIT COOPERATIVES RURAL FINANCE RURAL FINANCIAL SERVICES SAVINGS SELF-EMPLOYMENT SMALLHOLDER SMALLHOLDER AGRICULTURE SMALLHOLDER FARMERS SMALLHOLDERS SMOOTHING CONSUMPTION SOURCES OF INCOME SUPPLY CHAINS UNION URBAN AREAS VILLAGE VILLAGES WAGES Khandker, Shahidur R. Koolwal, Gayatri B. Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| geographic_facet |
Africa Uganda |
| relation |
Policy Research Working Paper;No. 6942 |
| description |
Smallholder agriculture in many
developing countries has remained largely self-financed.
However, improved productivity for attaining greater food
security requires better access to institutional credit.
Past efforts to extend institutional credit to smaller
farmers has failed for several reasons, including subsidized
operation of government-aided credit schemes. Thus, recent
efforts to expand credit for smallholder agriculture that
rely on innovative credit delivery schemes at market prices
have received much policy interest. However, thus far the
impacts of these efforts are not fully understood. This
study examines credit for smallholder agriculture in the
context of Uganda, where agriculture is about 35 percent of
gross domestic product, most farmers are smallholders, and
the country has introduced policies since 2005 to extend
credit access to the sector. The analysis uses newly
available household panel data from Uganda for 2005-2006 and
2009-2010 to examine (a) whether credit effectively targets
agriculture, by examining determinants of borrowing across
different sources; (b) agricultural and nonagricultural
determinants of supply and demand credit constraints among
non-borrowers; and (c) the effects of borrowing and credit
constraints on household income, consumption, and
agricultural outcomes. The analysis finds that although not
many households report borrowing specifically for
agriculture, credit is fungible and agricultural outcomes do
substantially improve with institutional borrowing,
particularly microcredit. Among non-borrowers, supply and
demand credit constraints have fallen considerably over the
period, particularly in rural areas. Access to institutions
and infrastructure play a strong role in alleviating the
negative effect of credit constraints on welfare outcomes,
as well as determining the source of lending among borrowing households. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Khandker, Shahidur R. Koolwal, Gayatri B. |
| author_facet |
Khandker, Shahidur R. Koolwal, Gayatri B. |
| author_sort |
Khandker, Shahidur R. |
| title |
Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| title_short |
Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| title_full |
Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| title_fullStr |
Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| title_full_unstemmed |
Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda |
| title_sort |
does institutional finance matter for agriculture? evidence using panel data from uganda |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/06/19705737/institutional-finance-matter-agriculture-evidence-using-panel-data-uganda http://hdl.handle.net/10986/18827 |
| _version_ |
1764442833669849088 |
| spelling |
okr-10986-188272021-04-23T14:03:49Z Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda Khandker, Shahidur R. Koolwal, Gayatri B. ACCESS TO CREDIT ACCESS TO INFORMATION ACCESS TO LENDERS ACCESSIBILITY AGRICULTURAL ACTIVITY AGRICULTURAL BANKS AGRICULTURAL CREDIT AGRICULTURAL ECONOMICS AGRICULTURAL FINANCE AGRICULTURAL MARKETS AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURE ASSETS AVAILABILITY OF CREDIT BANK CREDIT BANKS BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL CREDIT CONTRACTUAL RELATIONS COOPERATIVE CREDIT COOPERATIVE LENDING COOPERATIVES CREDIT ACCESS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT COOPERATIVE CREDIT DELIVERY CREDIT FACILITY CREDIT MARKET CREDIT MARKET ACCESS CREDIT MARKETS CREDIT PROGRAMS CREDIT SCHEMES DEBT DEMAND FOR CREDIT DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISEQUILIBRIUM DIVERSIFICATION EARNINGS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EMPLOYER ENDOWMENTS ENTREPRENEURS ETHNIC GROUPS EXCLUSION EXPENDITURE FARM ENTERPRISES FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SERVICES FORMAL BANKS FORMAL FINANCE FORMS OF CREDIT GDP GENDER GROSS DOMESTIC PRODUCT HOMEOWNERSHIP HOUSEHOLD INCOME HOUSEHOLDS HOUSING INFLATION INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR FORCE LABOR MARKET LABOR SUPPLY LACK OF ACCESS LIMITED ACCESS LINES OF CREDIT LIQUIDITY LOAN LOANS TO FARMERS LOCAL FINANCIAL INSTITUTIONS MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MONEYLENDERS MOTIVATION POINT-OF-SALE POLITICAL ECONOMY PRODUCTION CREDIT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS RURAL CREDIT RURAL CREDIT COOPERATIVES RURAL FINANCE RURAL FINANCIAL SERVICES SAVINGS SELF-EMPLOYMENT SMALLHOLDER SMALLHOLDER AGRICULTURE SMALLHOLDER FARMERS SMALLHOLDERS SMOOTHING CONSUMPTION SOURCES OF INCOME SUPPLY CHAINS UNION URBAN AREAS VILLAGE VILLAGES WAGES Smallholder agriculture in many developing countries has remained largely self-financed. However, improved productivity for attaining greater food security requires better access to institutional credit. Past efforts to extend institutional credit to smaller farmers has failed for several reasons, including subsidized operation of government-aided credit schemes. Thus, recent efforts to expand credit for smallholder agriculture that rely on innovative credit delivery schemes at market prices have received much policy interest. However, thus far the impacts of these efforts are not fully understood. This study examines credit for smallholder agriculture in the context of Uganda, where agriculture is about 35 percent of gross domestic product, most farmers are smallholders, and the country has introduced policies since 2005 to extend credit access to the sector. The analysis uses newly available household panel data from Uganda for 2005-2006 and 2009-2010 to examine (a) whether credit effectively targets agriculture, by examining determinants of borrowing across different sources; (b) agricultural and nonagricultural determinants of supply and demand credit constraints among non-borrowers; and (c) the effects of borrowing and credit constraints on household income, consumption, and agricultural outcomes. The analysis finds that although not many households report borrowing specifically for agriculture, credit is fungible and agricultural outcomes do substantially improve with institutional borrowing, particularly microcredit. Among non-borrowers, supply and demand credit constraints have fallen considerably over the period, particularly in rural areas. Access to institutions and infrastructure play a strong role in alleviating the negative effect of credit constraints on welfare outcomes, as well as determining the source of lending among borrowing households. 2014-06-30T16:49:41Z 2014-06-30T16:49:41Z 2014-06 http://documents.worldbank.org/curated/en/2014/06/19705737/institutional-finance-matter-agriculture-evidence-using-panel-data-uganda http://hdl.handle.net/10986/18827 English en_US Policy Research Working Paper;No. 6942 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Uganda |