Household-level Credit Constraints in Urban Ethiopia

Gamal Ibrahim (), Abbi Kedir and Sebastián Torres Ledezma

No 07/03, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: Empirical evidence on determinants of credit constraints and the amount borrowed by urban household in Sub-Saharan Africa is almost non-existent. Using an extended direct approach by virtue of the unique data set we have (the Fourth Round Ethiopian Urban Household Survey), we analysed the determinants of credit constraints and the amount borrowed by urban households. We find a high percentage of credit-constrained households, the majority of which constitute discouraged borrowers. Discrete choice models that control for potential endogeneity and selectivity bias have been fitted to our data. Our analysis shows current household resources, number of dependants, and location as significant correlates.

Keywords: credit constrained households; credit rationing; endogeneity; instrumental variables; urban Ethiopia; Africa (search for similar items in EconPapers)
JEL-codes: D12 O12 O55 (search for similar items in EconPapers)
Date: 2007-03
New Economics Papers: this item is included in nep-afr, nep-dcm and nep-dev
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Household-Level Credit Constraints in Urban Ethiopia (2012)
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