Interest Rate Determination in Underdeveloped Rural Areas

Anthony Bottomley

American Journal of Agricultural Economics, 1975, vol. 57, issue 2, 279-291

Abstract: Interest rates for rural and unorganized money markets in third world societies have not been extensively studied. This paper uses a comprehensive review of agricultural credit literature to explore the relationships between the costs of extending credit, amounts loaned, and the borrower's ability to absorb further capital. High costs in administering small loans and resistance to repay suggest the convenience of linkages between lending agencies and marketing boards for the crops upon which loans are made. Village moneylenders-cum-traders may be able to operate more efficiently than public agencies, particularly when trained staff are in short supply.

Date: 1975
References: Add references at CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://hdl.handle.net/10.2307/1238503 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:57:y:1975:i:2:p:279-291.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().