Liquidity constraints, access to credit and pro-poor growth in rural Tanzania

Alex Winter-Nelson and Anna A. Temu
Additional contact information
Anna A. Temu: Department of Agricultural Economics and Agribusiness, Sokoine University of Agriculture, Morogoro, Tanzania, Postal: Department of Agricultural Economics and Agribusiness, Sokoine University of Agriculture, Morogoro, Tanzania

Journal of International Development, 2005, vol. 17, issue 7, 867-882

Abstract: Small-scale farmers in developing countries may become trapped in poverty by lack of the liquidity needed to make profitable investments. Increased access to credit could generate pro-poor economic growth if poor households are otherwise liquidity-constrained and if liquidity-constrained households benefit from the new financial services. Using household data from rural Tanzania, this paper presents evidence that increased finance for liquidity-constrained households could generate pro-poor agricultural growth, but that general expansion of financial services to households that have no access to credit would not effectively target lower income households or households whose farm activities are liquidity-constrained. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://hdl.handle.net/10.1002/jid.1175 Link to full text; subscription required (text/html)

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:wly:jintdv:v:17:y:2005:i:7:p:867-882

DOI: 10.1002/jid.1175

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().