Segmentation in the informal credit markets: the case of the Philippines

Geetha Nagarajan, Richard L. Meyer and Leroy J. Hushak

Agricultural Economics, 1995, vol. 12, issue 2, 171-181

Abstract: This paper explains market segmentation that occurs in the Philippine informal credit markets through the matching of borrowers and lenders by their occupational specializations to internalize transaction costs and facilitate economic activity. The regression results support a predictable pattern of matching farmer lenders with borrowers specialized in non‐farm activities and trader lenders with borrowers specialized in farming.

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:bla:agecon:v:12:y:1995:i:2:p:171-181

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