If only I could borrow more! Production and consumption credit constraints in the Philippines

Marie Godquin () and Manohar Sharma ()
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Marie Godquin: TEAM

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper provides a new approach to analyzing credit constraints by differentiating which of the household's production and consumption decisions are affected by credit constraints. It also provides a first attempt to estimate of the extent and determinants of credit constraints in the Philippines. Based on direct questions on households' experiences in credit markets, we estimate the percentage of credit-constrained households at 65%. The lack of credit constrained the level of agricultural production of 37% of the farming households; it also constrained the level of family business production of 31% of the households operating such businesses. Credit constraints also limited consumption choices of 21% of the sample households. We found that the presence of credit programs operating in the village and proximity to commercial banks and rural banks reduced the probability of credit constraints in production decisions. Further, some types of households are more likely to experience credit constraints. These are the households with little education, households that own little or no titled land and sugar-producing households

Keywords: Credit constraints; Philippines; Asia (search for similar items in EconPapers)
JEL-codes: O12 O16 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2005-01
New Economics Papers: this item is included in nep-dev and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: If only I could borrow more! Production and consumption credit constraints in the Philippines (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:bla05008

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