An Institutional Economics Approach to the Problems of Small Farmer Credit in India

Samar K. Datta

No WP2003-07-01, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: This paper applies the tools of institutional economics – especially those pertaining to informational asymmetry and transaction costs - for studying the credit problems of small farmers in India, who, in spite of a vast network of credit institutions developed over a long period of time under government ownership and/or control, are alleged as not getting a share of formal sector credit commensurate with their statistical dominance. It uses data collected by the Agro-economic Research Centers and Units under the Ministry of Agriculture, Government of India from a carefully selected sample of 700 borrower households across the country over a period of three years (1997-1998 to 1999-2000) to provide a preliminary explanation of the various dimensions of a credit package in terms of variation in borrower’s village, household and other loan attributes.

Date: 2003-07-01
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Citations: View citations in EconPapers (4)

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