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Credit Labour Interlinkage Revisited

Tanmoyee Banerjee (Chatterjee), Malabika Roy and Chandralekha Ghosh
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Tanmoyee Banerjee (Chatterjee): Department of Economics, Jadavpur Universit, Kolkata, India
Malabika Roy: Department of Economics, Jadavpur Universit, Kolkata, India
Chandralekha Ghosh: Department of Economics, West Bengal State University, India

Authors registered in the RePEc Author Service: Tanmoyee Banerjee (Chatterjee) ()

Indian Economic Review, 2015, vol. 50, issue 1, 131-167

Abstract: The present paper examines the incidence of credit labour interlinkage under the assumption that the households that take interlinked credit use it as working capital in agriculture. First a theoretical model is developed. Next the theoretical model is empirically validated on the basis of a primary survey conducted in two villages located in the district of North 24 Parganas, of West Bengal in India. Results show that agricultural land holding status of the borrower positively and significantly influences the probability of interlinked loans and sizes of interlinked loans are influenced by the land holding size of the labourers who are taking such loans.

Keywords: Credit Contracts; Informal Sources; Working Capital Loans; Credit Labour Interlinked Contract (search for similar items in EconPapers)
JEL-codes: J41 O12 (search for similar items in EconPapers)
Date: 2015
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