Access the full text.
Sign up today, get DeepDyve free for 14 days.
C.G. Turvey, R. Kong, J. Ma, G. He, P. Meagher
Farm credit and credit demand Elasticities in Shaanxi and Gansu, People's Republic of China
S. Boucher, M. Carter, C. Guirkinger (2005)
Risk Rationing and Wealth Effects in Credit Markets: Theory and Implications for Agricultural DevelopmentPolitical Economy - Development: Domestic Development Strategies eJournal
M.R. Carter, L. Cheng, A. Sarris
The impact of interlinked index insurance and credit contracts on financial market deepening and small farm productivity
T. Srinivasan, C. Bell, Christopher Udyr, T. Srintvasant, Christopher Udryj
An Exploration of China's Mortality Decline under Mao: a Provincial Analysis, 1950-80 Rationing, Spillover, and Interlinking in Credit Markets: the Case of Rural Punjab
Apurba Shee, C. Turvey (2012)
Collateral-free lending with risk-contingent credit for agricultural development: indemnifying loans against pulse crop price risk in IndiaAgricultural Economics, 43
Dean Karlan, E. Kutsoati, M. McMillan, C. Udry (2011)
Crop Price Indemnified Loans for Farmers: A Pilot Experiment in Rural GhanaRandomized Social Experiments eJournal
S. Bhattacharyya (2005)
Interest rates, collateral and (de-)interlinkage: a micro-study of rural credit in West BengalCambridge Journal of Economics, 29
A. Braverman, J. Guasch (1986)
Rural credit markets and institutions in developing countries: Lessons for policy analysis from practice and modern theoryWorld Development, 14
Miles Kimball (1989)
Precautionary Saving in the Small and in the LargeNBER Working Paper Series
G. Salazar, V.L. Bogan, C.G. Turvey
The elasticity of demand for microcredit
Davide Castellani (2014)
Shocks and credit choice in Southern EthiopiaAgricultural Finance Review, 74
P. Ciaian, J. Fałkowski, d'Artis Kancs (2012)
Access to credit, factor allocation and farm productivity: Evidence from the CEE transition economiesAgricultural Finance Review, 72
C. Turvey, R. Kong (2009)
Business and financial risks of small farm households in ChinaChina Agricultural Economic Review, 1
C. Turvey, Guangwen He, R. Kong, Jiujie Ma, P. Meagher (2011)
The 7 Cs of rural credit in China, 1
Francisco Galarza, M. Carter (2010)
Risk Preferences and Demand for Insurance in Peru: A Field Experiment
H. Binswanger (1980)
Attitudes toward risk: Experimental measurement in rural indiaArtefactual Field Experiments
Rajeev Dehejia, J. Morduch, Heather Montgomery (2005)
Do Interest Rates Matter? Credit Demand in the Dhaka SlumsSRPN: Microfinance (Topic)
M. Carter, Pedro Olinto (2003)
Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of InvestmentOrganizations & Markets: Formal & Informal Structures eJournal
Daniel Domeher, R. Abdulai (2012)
Land registration, credit and agricultural investment in AfricaAgricultural Finance Review, 72
R. Swain (2002)
Credit Rationing in Rural IndiaJournal of economic development, 27
Steven Sharpe (1990)
Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer RelationshipsJournal of Finance, 45
Mukesh Eswaran, Ashok Kotwal (1990)
IMPLICATIONS OF CREDIT CONSTRAINTS FOR RISK BEHAVIOUR IN LESS DEVELOPED ECONOMIES, 42
H. Bester (1985)
Screening vs. Rationing in Credit Markets with Imperfect InformationThe American Economic Review, 75
H. Binswanger, S. Khandker, M. Rosenzweig (1989)
How infrastructure and financial institutions affect agricultural output and investment in India
C. Turvey, Guangwen He, Jiujie Ma, R. Kong, P. Meagher (2012)
Farm credit and credit demand elasticities in Shaanxi and GansuChina Economic Review, 23
C. Bell (1990)
Interactions between institutional and informal credit agencies in rural IndiaThe World Bank Economic Review, 4
C. Bell, T.N. Srintvasan, C. Udry
Rationing, spillover, and interlinking in credit markets: the case of rural Punjab
D. Adams, D. Graham (1981)
A critique of traditional agricultural credit projects and policiesJournal of Development Economics, 8
S.V. Khantachavana, C.G. Turvey, R. Kong, X. Xia
On the transactions values of land use rights in China
J. Morduch (1995)
Income Smoothing and Consumption SmoothingJournal of Economic Perspectives, 9
Dean Karlan, Jonathan Zinman (2007)
Credit Elasticities in Less-Developed Economies: Implications for MicrofinanceSEIN Social Impacts of Business eJournal
C. Turvey, R. Kong (2010)
Informal lending amongst friends and relatives: Can microcredit compete in rural China?China Economic Review, 21
D. Adams, J. Pischke (1992)
Micro-Enterprise Credit Programs: Déjà VuFinancial Landscapes Reconstructed
R. Masson (1974)
UTILITY FUNCTIONS WITH JUMP DISCONTINUITIES: SOME EVIDENCE AND IMPLICATIONS FROM PEASANT AGRICULTUREEconomic Inquiry, 12
Ron Weber, O. Musshoff (2013)
Can flexible microfinance loans improve credit access for farmersAgricultural Finance Review, 73
M. Carter (1988)
Equilibrium credit rationing of small farm agricultureJournal of Development Economics, 28
A. Roy (1952)
Safety first and the holding of assettsEconometrica, 20
A. Kochar (1997)
Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural IndiaERN: Other Development Economics: Agriculture
H. Binswanger, D. Sillers (1983)
Risk aversion and credit constraints in farmers' decision‐making: A reinterpretationJournal of Development Studies, 20
H. Leland. (1968)
Saving and Uncertainty: The Precautionary Demand for SavingQuarterly Journal of Economics, 82
Sivalai Khantachavana, C. Turvey, R. Kong, X. Xia (2012)
On the Transaction Values of Land Use Rights in Rural ChinaProperty
A. Kochar (1997)
An empirical investigation of rationing constraints in rural credit markets in IndiaJournal of Development Economics, 53
T. Kurosaki, M. Fafchamps (2002)
Insurance market efficiency and crop choices in PakistanJournal of Development Economics, 67
S. Boucher, C. Guirkinger, Carolina Trivelli (2006)
Direct elicitation of credit constraints: Conceptual and practical issues with an empirical application
S. Boucher, C. Guirkinger, Carolina Trivelli (2009)
Direct Elicitation of Credit Constraints: Conceptual and Practical Issues with an Application to Peruvian AgricultureEconomic Development and Cultural Change, 57
J. Stiglitz, A. Weiss (1992)
ASYMMETRIC INFORMATION IN CREDIT MARKETS AND ITS IMPLICATIONS FOR MACRO-ECONOMICS, 44
C. Turvey, R. Kong, Xuexi Huo (2010)
Borrowing amongst friends: the economics of informal credit in rural ChinaChina Agricultural Economic Review, 2
C. Guirkinger, S. Boucher (2007)
Credit Constraints and Productivity in Peruvian Agriculture
H. Thiele, A. Wambach (1998)
Wealth Effects in the Principal Agent ModelMicroeconomic Theory eJournal
M. Miranda, C. González-Vega (2011)
Systemic Risk, Index Insurance, and Optimal Management of Agricultural Loan Portfolios in Developing CountriesAmerican Journal of Agricultural Economics, 93
C.G. Turvey, G. He, R. Kong, J. Ma, P. Meagher
The 7 Cs of Chinese rural credit
C. Turvey (2013)
Policy rationing in rural credit marketsAgricultural Finance Review, 73
C. Udry (1994)
Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern NigeriaThe Review of Economic Studies, 61
Purpose – The purpose of this paper is to determine the extent of risk rationing among potential rural borrowers in Mexico and China. Design/methodology/approach – Using primary survey data from 730 farm households in the Shaanxi province of China and from 372 farmers in northeastern Mexico, the authors investigate factors associated with risk rationed, price rationed and quantity rationed farmers. The survey was instrumented to self‐identify borrower typologies. In addition the authors created within the survey a discrete‐choice credit demand build to determine borrower credit demand elasticities. The analysis applies a linear probability which the authors found to be consistent with multinomial and binary logit models. Findings – The authors find in China the incidence of risk rationing in farmers to be 6.5, 14 percent for quantity rationed and 80 percent for price rationed. In Mexico, 35 percent of the sample is risk rationed, 10 percent quantity rationed and 55 percent price rationed. The results from China support the hypothesis that the financially poor are more likely to be quantity rationed; in Mexico, however, the level of education is found to be important in determining quantity rationed. In both countries, asset wealthy farmers are less likely to be risk rationed; however, income does not appear to have an impact. The paper provides evidence that the elasticity of demand for credit is different among the three credit rationed groups: risk rationed, price rationed and quantity rationed. Risk aversion and prudence are significantly correlated with risk rationing in China, while only risk aversion is significant in Mexico. The results suggest that efforts to enhance credit access must also deal with risk and risk perceptions. Practical implications – Risk rationing is an important concept in the understanding of rural credit markets. The findings that only 6.5 and 35 percent of Chinese and Mexican farmers are in stark contrast to each other. For agricultural economies such as Mexico with a significant number of farmers being risk rationing, more effort should be put into financial education and financial practices, including perhaps the use of risk‐contingent credit to remove collateral risk. As property rights in China evolve, and new laws are promulgated to permit borrowing against land use rights, the collateralization issue will become much more important in rural credit markets. Originality/value – This paper is the first to investigate risk rationing in China and Mexico and one of the few research studies empirically investigating risk rationing. A comparative analysis of Mexico and China is enlightening because of the structural differences in the respective agricultural economies. The use of a credit demand build and the enumeration of individual credit demand elasticities is an original contribution to this literature.
Agricultural Finance Review – Emerald Publishing
Published: Jul 1, 2014
Keywords: China; Mexico; Agricultural finance; Credit rationing; Credit demand elasticities; Risk rationing
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.