Does Access to Rural Credit Help Decrease Income Inequality in Brazil?

Mateus Neves, Carlos Otávio Freitas, Felipe de Figueiredo Silva, Davi Rogério de Moura Costa and Marcelo Braga

Journal of Agricultural and Applied Economics, 2020, vol. 52, issue 3, 440-460

Abstract: Agricultural production in Brazil has increased in recent decades. Despite this, the rural population continues to face income inequality. Policies targeting this issue, such as rural credit, have been implemented during this period. This study estimates the influence of credit on income inequality in Brazilian rural areas. Results suggest that the family farming credit program (PRONAF) is not associated with increase in inequality. However, access to rural credit from sources other than PRONAF has led to greater household income inequality. Results also indicate that greater levels of education and access to rural extension have boosted the effect of credit on income.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:52:y:2020:i:3:p:440-460_7

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