Structure of the Credit Market and its link with the other Markets-An Analysis of Village Survey Data in Bangladesh
Arindam Banik ()
Indian Economic Review, 1993, vol. 28, issue 1, 55-71
This paper discusses the structure and operation of different credit markets in two different villages of Bangladesh. As a prelude to the issue, the study, reviews the current literature on farmer's choice of loan and its impact on technological innovation in agricultural practices. The analysis indicates that informal credit markets are an important part of credit markets in both the villages. The study found a variety of linked credit transactions involving credit-land, credit-land tenure, credit crop, and crob-crop. The study reveals that large borrowers are not as affected by transactions cost as the small borrowers. Thus, small borrowers pay higher effective interest rate as compared to large farm borrowers in the formal market.
JEL-codes: Q12 Q14 (search for similar items in EconPapers)
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