Credit Constraints as a Barrier to Technology Adoption by the Poor: Lessons from South-Indian Small-Scale Fishery

Xavier Gine and Stefan Klonner

No RP2006-104, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We study the diffusion of a capital intensive technology among a fishing community in south India and analyze the dynamics of income inequality during this process. We find that lack of asset wealth is an important predictor of delayed technology adoption. During the diffusion process, inequality follows Kuznets' well-known inverted U-shaped curve. The empirical results imply that redistributive policies favouring the poor result in accelerated economic growth and a shorter duration of sharpened inequality.

Keywords: Credit; Equality and inequality; Fisheries; Income distribution; Technology (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (14)

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Working Paper: Credit constraints as a barrier to technology adoption by the poor: lessons from South Indian small-scale fishery (2005)
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