scholarly journals Liquidity or Capital? The Impacts of Easing Credit Constraints in Rural Mexico

2021 ◽  
Author(s):  
Gabriela Aparicio ◽  
Vida Bobic ◽  
Fernando De Olloqui ◽  
María Carmen ◽  
Fernández Diez ◽  
...  
Keyword(s):  
Credit Constraints ◽  
Rural Mexico

scholarly journals Liquidity or Capital? The Impacts of Easing Credit Constraints in Rural Mexico

2021 ◽  
Author(s):  
Gabriela Aparicio ◽  
Vida Bobić ◽  
Maria Paula Gerardino ◽  
Oscar A. Mitnik
Keyword(s):  
Credit Constraints ◽  
Rural Mexico

scholarly journals Liquidity or Capital?: The Impacts of Easing Credit Constraints in Rural Mexico

2021 ◽  
Author(s):  
Gabriela Aparicio ◽  
Vida Bobić ◽  
Fernando De Olloqui ◽  
María Carmen Fernández Diez ◽  
María Paula Gerardino ◽  
...  
Keyword(s):  
Credit Constraints ◽  
Working Capital ◽  
Multiple Treatment ◽  
Annual Crops ◽  
Labor Quality ◽  
Input Use ◽  
Fixed Assets ◽  
Rural Mexico ◽  
Production Value ◽  
Rural Producers

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution. In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two- to four-year time horizon. This paper looks at the effects of such loans on production and investment decisions, input use, and yields. Using a multiple treatment methodology, it explores the differential impacts of providing liquidity for working capital versus providing credit for investments in fixed assets. It finds that loans increased the likelihood that producers grow and sell certain key annual crops, in particular among recipients of working capital loans. It also finds significant effects on production value and sales (per hectare), with similar impacts for recipients of both types of loans, with gains in yields driven by changes in labor quality and more intensive use of key inputs. There is no evidence of significant effects on the purchase of large machinery, but there are impacts on the acquisition of cattle. Overall, the results reported in this paper suggest that lack of liquidity is at least as important as lack of funding for new investment in capital for rural producers in Mexico. Producers benefit from easing their credit constraints, regardless of the type of loan used for that purpose.

Credit constraints and Rural Migration: Evidence from Six Villages in Uttar Pradesh

2018 ◽  
Vol 15 (3) ◽  
pp. 389-398
Author(s):  
Ruchi Singh
Keyword(s):  
Credit Constraints ◽  
Uttar Pradesh ◽  
Binary Logistic Regression ◽  
Binary Logistic Regression Model ◽  
Male Migration ◽  
Rural Economies ◽  
And Migration ◽  
The Relationship ◽  
The Empirical Analysis

Rural economies in developing countries are often characterized by credit constraints. Although few attempts have been made to understand the trends and patterns of male out-migration from Uttar Pradesh (UP), there is dearth of literature on the linkage between credit accessibility and male migration in rural Uttar Pradesh. The present study tries to fill this gap. The objective of this study is to assess the role of credit accessibility in determining rural male migration. A primary survey of 370 households was conducted in six villages of Jaunpur district in Uttar Pradesh. Simple statistical tools and a binary logistic regression model were used for analyzing the data. The result of the empirical analysis shows that various sources of credit and accessibility to them play a very important role in male migration in rural Uttar Pradesh. The study also found that the relationship between credit constraints and migration varies across various social groups in UP.

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