Impact of Infrastructure and Agroclimate on the Location of Rural Bank Branches in Pakistan: A Preliminary Assessment

Kalbe Abbas, Musleh-ud Din (), Ejaz Ghani and Sarfraz K. Qureshi
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Ejaz Ghani: Pakistan Institute of Development Economics, Islamabad.
Sarfraz K. Qureshi: Pakistan Institute of Development Economics, Islamabad.

The Pakistan Development Review, 1996, vol. 35, issue 4, pages 899-909

Abstract: Rural financial institutions play an important role in development and growth of the agricultural sector. In developing economies some rural areas are adequately served by financial institutions, while others have little or no access to these institutions. This uneven pattern of geographic location of rural bank branches has been attributed largely to regional differences in agroclimatic conditions and infrastructural endowments. We have estimated several alternative specifications which can be helpful in understanding the spatial distribution of commercial bank branches across the rural areas. Our results indicate that the location of rural bank branches is significantly influenced by infrastructural endowments and agroclimatic environment.

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