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We examine the effect of regional favoritism on the access of firms to credit. Using firm-level data on a large sample of 29,000 firms covering 47 countries, we investigate the hypothesis that firms in the birth regions of national political leaders have better access to credit. Our evidence suggests that firms located in birth regions of political leaders are less likely to be credit constrained. The effect takes place through the demand channel: firms in leader regions face fewer hurdles in applying for loans. We find no evidence, however, of preferential lending from banks to firms in leader regions. Thus, regional favoritism affects access to credit through differences in perceptions of firm managers, not deliberate changes in the allocation of resources by political leaders.

Does a women-friendly legal environment help women overcome discrimination in credit markets? By examining antidiscrimination laws and their implications for women-led businesses' access to credit in 124 countries, the current study differentiates an effect on discouragement (i.e., not asking for credit when they need it, demand side) and an effect on the probability that they obtain credit (supply side). Legal protections are associated with lower discouragement for women-led firms, but they do not support the attainment of more credit. We demonstrate that enforcement efforts dramatically amplify the effect of women-friendly laws on self-restrictions in terms of credit and enable women-led firms to access more credit. Women are sensitive to the legal environment in which they operate, while banks need strong incentives to change their behavior. This effect is notable with regard to rational discouragement and prevails among smaller firms and in high-income countries. These results are robust to several tests.

Purpose: Small and Medium Enterprises (SMEs) significantly contribute to both social and economic development of people largely through their roles in job and innovation creation, and revenue generation. Majority of SMEs are undercapitalized due to inaccessibility of credit facilities. This adversely influence their capacity to invest in productive ventures and realize their corporate goals. Factors that influence SMEs’ access to credit are not well known. Thus, the current study sought to establish the influence of collateral availability on access to credit by SMEs in Meru County. Methodology: The study was guided by the theory of information asymmetry and the pecking order theory. The study was based on the descriptive survey design. The study targeted 204,810 SMEs in Meru County of which 384 SME owners were sampled using stratified sampling. Quantitative data was analyzed using both inferential and descriptive statistics.Qualitative data was analysed thematically. Findings: The study found that majority of SMEs in Meru County are able to access credit from SACCOs but not from MFIs and Banks without necessarily having to provide collateral since guarantors’ savings act as security for the loans. Recommendations: The study recommend that SMEs should ensure that they do not have negative listing by CRB to increase their chances of accessing credit. The study also recommend SMEs owners to acquire training on how to prepare and maintain proper financial statements.

Research on access to finance of large enterprises has been flourishing in the finance literature while studies relating to small and medium size enterprises have been less common in Sub-Saharan African countries specifically. In this research we investigate the link between some entrepreneurs’ characteristics (experience, gender and perception of entrepreneur) and Cameroonian SMEs access to credit. This study used the World Bank Enterprises Survey data from 324 Cameroonian SMEs. From descriptive analysis and Independence sample T-test, we found that gender is relevant to explain SMEs’ access to credit. Program policies aimed at SMEs’ entrepreneurs must encourage female entrepreneurs to diversify their financial resources through external formal financial resources.

PurposeThis paper investigates the effect of entrepreneurial orientation (EO) on small- and medium-sized enterprises' (SMEs) access to credit. Starting with the idea that SMEs' strategy-making process, structures and behaviour can favour credit access, the authors also explore the moderating role of bank lending technologies in shaping this relationship.Design/methodology/approachThis study relies on a unique survey of Austrian and Italian SMEs which contains detailed information on access to credit, EO dimensions, relationship lending and firm-level characteristics. The authors perform stepwise logistic regressions to assess whether EO interacts with SME's access to finance, and how relationship lending enhances this relationship.FindingsProactiveness, autonomy and competitive aggressiveness are important constructs for improving access to bank financing. Those dimensions became more important when a relationship bank is involved, suggesting a role for relationship lending in overcoming SMEs' opaqueness. In addition, relationship lending is crucial for innovative SMEs in overcoming credit denial rates.Research limitations/implicationsThe small sample did not allow to analyse the effect of EO on discouraged borrowers. Furthermore, alternative measures of relationship lending (such as geographical proximity or the length of the relationship) and the share of credit granted by the relationship bank would have been interesting to further validate our results.Practical implicationsThis study shows that EO dimensions and the type of lending technology are relevant for the financial success of SMEs. More precisely, the authors show that diversity within the banking system helps innovative, autonomous, proactive and competitive SMEs. These important pieces of soft information are injected into the final lending decision when a relationship bank is involved. The evidence suggests the need for SMEs to interact with local banks to fully exploit their EO posture.Originality/valueTo the authors' knowledge, this paper is the first attempt to analyse whether relationship lending can affect the EO–credit access relation.

Purpose of the study:The activities of women represent an untapped source of economic growth in any developing economy, and entrepreneurship is one way of using that vast pool of human resources as intermediaries for wealth creation. For this reason, the strong linkage between financial sector services and women entrepreneurship has continued to generate tremendous interest among researchers, practitioners, policymakers, and other stakeholders both at the national and international levels. The primary goal remains how to deepen financial inclusion of women to enhance their participation in entrepreneurship activities. Methodology:The study thus examines the influence of financial support services on the performance of women entrepreneurs in Jos, Plateau state. The study adopted a descriptive research design and applied multiple regression techniques for empirical analysis. Findings:Findings from the analysis revealed that financial credit awareness has a positive and significant impact on the growth of women entrepreneurs in Jos metropolis. This is basically because most women entrepreneurs have received invaluable business information from the financial sector, which has gone a long way to impact positively on the development of their business in Plateau state. Similarly, access to credit had no significant influence on the growth of women entrepreneurs in Jos metropolis. Lack of collateral, inadequate income statement, and high interest charged on loans made access to credit difficult for women entrepreneurs residing in Jos metropolis, and thus, it has stagnated their business growth. In addition, financial guarantor has an insignificant impact on the growth of women entrepreneurs. Application:Based on these findings, financial institutions should strive to reduce the stringent conditions attached to loan guarantors to ensure easy accessibility of credit by women entrepreneurs to realize a significant impact on their entrepreneurial contribution to the productivity in the state. Novelty/Originality:There is need for the government to develop a policy that will enhance credit assurance services and improve financial information infrastructure for financial accessibility of women-owned businesses in Nigeria

To analyze whether the occurrence of elections affects access to credit for firms, we perform an investigation using firm-level data covering 44 developed and developing countries. The results show that elections impair access to credit. Specifically, firms are more credit-constrained in election years and pre-election years as elections exacerbate political uncertainty. While lower credit demand is a tangible negative effect of elections, their occurrece per se does not seem to affect credit supply. We further establish that the design of political and financial systems affects how elections influence access to credit.

This paper explores the link between jobs, access to Finance, and informality. Using longitudinal firm-level data for countries in the Middle East and North Africa, it documents that jobs creation is positively associated with access to finance. At the same time, the findings show that access to finance is lower for firms that are more exposed to competition from informal firms. As a possible mechanism underlying this result, the paper provides evidence that firms that suffer informal competition have worse expectations on future sales growth, which in turn are associated with fewer loan applications.

The observation of firms’ political connections (PCs) and corruption has raised the question of their benefits to firms’ operation, especially on accessing to the financial resources. Firms with stronger political connections or informal payment willingness may get easier in approaching to formal bank loans. By using different types of PCs and bribe, the study shows that while PCs can help SMEs in getting formal bank loans, bribe does not have any effect on firms’ access to credit. The PCs can be known as the social capital, which helps the firm in accessing the resources. The paper gives a better understanding about the characteristics of SMEs in an emerging market and a network-oriented country like Vietnam.

This study evaluates the implications that access to credit has on welfare inequality in Malawi in order to address the gap left in previous studies concerning credit. The study employed data from Malawi’s Integrated Household Survey 2017 and used the propensity score analysis to examine what impact access to credit may have on the welfare of Malawian households using consumption per capita as a proxy for household welfare. The study further proceeded to use the generalized Lorenz curve, the Theil indexes as well as the Gini to examine the inequalities present in welfare among the households that access credit and those that do not. The results showed a positive impact of access to credit on welfare as households with access to credit experience lower levels of inequality than those without. However, a closer examination of the Theil’s indexes found that factors unrelated to access to credit had a stronger effect on inter-household inequalities than access to credit. The results imply that the impact that access to credit has on welfare inequality is a positive one, but its effect is substantially small. Thus, implying that policies aimed at enhancing distribution of credit should continue. Simultaneously, a more holistic approach on reducing inequality should be included at both household level and national level to achieve a desired result.

Access to agricultural credit is one of the key factors that boost the adoption of technologies to improve agricultural production. Information and Communication Technology (ICT) tools have been referred to as essential channels in the dissemination of agricultural extension information. However, it has been observed that the majority of peasants were not using them to access the information. The aim of this study was to delineate the level of agricultural credit access, sources of the credit, amount of the credit accessed, and the correlation between access to the credit and the use of ICT tools in the extension services among peasants. A correlation research design was utilized in this study at Rangwe Sub-County, Kenya. Data were collected with the help of pretested structured questionnaire from 106 peasants who grow cassava in the Sub-County. The data obtained were analyzed using Spearman’s correlation and descriptive statistics with the aid of Statistical Package for Social Science (SPSS) Version 25. Descriptive results revealed that 68% of the peasants interviewed had no access to the credit, while 32% had access. The majority (70%) of those who had the access received it from Saving and Credit Co-Operative (SACCOs). The majority (68%) received the lowest amount of credit. Spearman’s correlation revealed that there was a moderate, positive correlation between access to credit and the use of the ICT tools. The correlation was statistically significant at 1% level of significance (R = +.646**, P = .000, R2 =0.417). Access to credit appears to provide a positive and moderate correlation with the use of the ICT tools as it predicts 42% of the use of the tools in cassava production. The positive correlation coefficient indicates that an increase in access to agricultural credits among the peasants translates to an increase in the adoption of ICT tools in agricultural extension.

We investigate whether the occurrence of elections affect access to credit for firms. We perform an investigation using firm-level data covering 44 developed and developing countries. We find that elections have a detrimental influence on access to credit: firms are more credit-constrained in election years but also in pre-election years. We explain this finding by the fact that elections exacerbate political uncertainty. The negative effect of elections takes place through lower credit demand, whereas the occurrence of elections does not affect credit supply. We further establish that the design of political and financial systems affects how elections influence access to credit.

An all-or-nothing view of financial access leading to overly simplistic policy recommendations has been largely overturned in the data. Heterogeneity and explicit obstacles to trade are key aspects that need to be incorporated into models when looking at intermediate outcomes in the data. Networks in particular can amplify or work against policy interventions and do so in different directions for different groups at the same time. Work on village money markets allows us to better understand how these networks function, and how and why they can change with policy interventions. Nevertheless, though village economies are as sophisticated as those in New York financial markets, both suffer from familiar problems. One is reliance on relationships that segment markets and limit more universal benefits. A second problem is market contagion. Policy interventions facilitating financial access and the functioning of markets need to be guided by this stricter yet more realistic view.

Purpose: The purpose of this study was to investigate the effect of monetary interventions on access to credit by micro, small and medium enterprises in Kisumu County, Kenya. The specific objective was to assess the effect of moral suasion on access to credit by micro, small and medium enterprises in Kisumu County. The theory supporting this study was the monetarism theory by Milton Friedman of 1967. It states that when money supply expands, it lowers interest rates and when money supply decreases, it raises interest rates making loans more expensive and slowing down economic growth. Methodology: The study adopted a descriptive research design. The target population was the 1,472 micro, small and medium enterprise groups registered at the department of Social Services in Kisumu County, Kenya. A confidence level of 95% was adopted to obtain a representative sample based on the formula by Yamane Taro. A closed ended questionnaire was administered to a stratified sample of 420 finance managers of the micro, small and medium enterprises. A Cronbach’s alpha of 0.801 confirmed the reliability of the instrument while its validity was assessed by expert opinion of finance professionals. Data diagnostic tests and descriptive analysis provided a basis for the inferential analysis, based on correlation and regression analysis. Results showed that moral suasion has a statistically significant effect on access to credit by micro, small and medium enterprises. Findings: The findings provide empirical evidence that moral suasion is significant for interventions targeting access to credit by MSMEs. Unique contribution to Theory, Policy and Practice: This study contributes to the practice of MSMEs because it recommends that access to credit by MSMEs depends on the direct effects of moral suasion. This sector should therefore take advantage of the interventions available to them through moral suasion. The study contributes to policy by recommending that policy-makers ought to employ sector specific interventions through moral suasion by setting aside funds for this sector to be managed by the financial institutions. They could also provide credit guarantees to the MSME sector to cushion the banks from non-performing loans. Contribution to theory

This study investigated the determinants of access to credit among cocoa farmers in Osun state, Nigeria. Specifically, the study described the socio-economic characteristics of cocoa farmers in the study area, examined the factors affecting access to credit by cocoa farmers in the study area; and identified the constraints faced by cocoa farmers in credit acquisition. The study was conducted in Osun state, south-western Nigeria. A multi-stage sampling procedure was used for selecting respondents for this study. A total number of 180 farmers were selected for the study. Data were analyzed using Descriptive statistics and logit Regression. The results for the entire respondents showed average values of 46 years for age, 25 years for year of experience, 8 persons for household size, and about 88% of the respondents have formal education. Farm size (p

This paper investigates the consequences of the COVID-19 crisis on firms’ performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank’s “Enterprise Surveys follow-up on COVID-19” for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms’ ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic’s impact on firms’ performance and amplify liquidity stress and financing problems. Credit-constrained enterprises are not only more likely to experience liquidity shortages and repayment problems, but they also face higher difficulties in accessing bank financing. The COVID-19 crisis has also hampered the beneficial role that green management exerted on access to credit in the pre-pandemic period. During the pandemic, firms with sound environmental management practices do not benefit from improved access to finance and have a lower demand for credit, possibly suggesting a slowdown in their green investment activities.

This study aimed at determining the drivers of access to credit among smallholder farmers in Uganda. Using a cross-sectional survey, data were collected from 374 farmers in Jinja district, followed by data analysis using descriptive statistics and Binary logistic regression model. Additionally, we used Chi-square and t-test to compare farmers with and without access to credit. The results showed that 62.83% of the farmers had access to credit. Additionally, farmers with access to credit were generally better off than those without access to credit. Having a mobile phone (p

Purpose: The purpose of this study was to investigate the moderating role of financial innovations on the effect of monetary interventions on access to credit by micro, small and medium enterprises in Kisumu County, Kenya. The specific objectives were to assess the effect of interest rate cap on access to credit by MSMEs and to investigate the moderating role of financial innovations on the effect of interest rate cap on access to credit by MSMEs in Kisumu. This study was guided by the Keynesian Liquidity Preference Theory. Methodology: The study adopted a descriptive research design with a target population of the 1,472 micro, small and medium enterprises registered at the Department of Social Services in Kisumu County, Kenya. At a confidence level of 95%, a representative sample of 420 MSMEs was obtained based on Yamane Taro’s formula. A closed ended questionnaire was administered to a stratified sample of the finance managers of the micro, small and medium enterprises. A Cronbach’s alpha of 0.801 confirmed the reliability of the instrument while its validity was assessed by expert opinion of finance professionals. Data was analyzed using regression analysis. Results: Results showed that interest rate cap had a statistically significant effect on access to credit by micro, small and medium enterprises. Further, financial innovations moderated the relationship between interest rate cap and access to credit. The study concluded that MSMEs’ access to credit depended on the direct and the hierarchical effects of interest rate cap and also that financial innovations moderated these effects. Unique contribution to theory, practice and policy: The study recommends that the MSMEs could save with commercial banks to enable them access credit made available through lower interest rates unlike those charged by MFIs. Also, they should take advantage of financial innovations at their disposal to enable them access credit cheaply and fast. The policy makers ought to aim at enhancing access to credit by employing sector specific interventions as opposed to blanket interventions like cushioning MSMEs from high interest rates by providing such funds as funds for inclusion of the informal sector (FIIS) and should also derive policies targeting on improving the process and role of financial innovations in the relationship between interest rate cap and access to credit by MSMEs in Kenya. The study supported the Keynesian liquidity preference theory by positing that interest rates are controlled by the rise and fall of supply and demand for money and should be allowed to adjust freely. This theory could therefore be applied to similar studies.

In one of their publications, the Development Finance Department of the CBN noted that Small and Medium-Sized Enterprises (SMEs) are essential to any nation's economic growth. It has been discovered that small and medium-sized businesses (SMEs) have tremendous potential for employment generation, technological advancement, output diversification, the nation’s entrepreneurship development, forward growth, and eventual integration into large-scale industries. The increasing significance of small and medium-sized enterprises (SMEs) and the contributions they make to the nation's economic development necessitate that they receive the necessary assistance and resources, particularly access to financial resources, in order to increase their economic contribution; However, for a variety of reasons, including assumptions and facts, this has not been the case. Financial intermediaries are the most unprepared stakeholders in the provision of the necessary finance for bridging the gap between the SME's financial needs and available funds. Despite the potential that SMEs have demonstrated, they still do not feel comfortable considering them top in loan/credit allocation and pricing. Access to lending or other external sources of financing is one of the factors that determines the growth, survival, and development of a business, including small and medium enterprises, according to previous and recent research. This is especially true for small and medium-sized businesses, which face a number of obstacles when trying to get credit financing from banks and other financial institutions. Some of these obstacles are said to be caused by banks and financial institutions not having enough information to evaluate the credit opportunity. This paper examines the performance and growth of Nigerian SMEs as well as their access to credit. The findings and conclusion showed that the performance and growth of small and medium-sized enterprises (SMEs) in Nigeria are influenced by their access to credit; however, SMEs in Nigeria have less access to credit than large corporations. Despite the difficulties and setbacks that SMEs face, they have always demonstrated the potential for greater performance, growth, and retention of their position as a significant contributor to the country's GDP if they have access to the necessary credit.

Land transfer is a favorable tool to solve the low land utilization rate caused by population aging and migration. Most previous studies on land transfer behavior focused on the participation and area of transfer, while little attention was paid to farmers’ future land transfer intentions. Hence, by building an analysis framework of land transfer-in “participation-area-future willingness,” this study uses the recent farm-level data from China to systematically examine the relationship between access to credit and land transfer-in decisions. To address the potential endogeneity and selection bias from the observable and unobservable factors, we employ the endogenous switching regression (ESR) model and endogenous switching probit (ESP) model for the analysis. The empirical results show that access to credit increases the expected probability of land transfer-in participation and futural intention, as well as helps to expand the land transfer-in area. Specifically, access to credit contributes to increasing the participation, area, and futural willingness of farmers’ land transfer-in by 62.6%, 126%, and 74.9%, respectively. The positive role of access to credit is confirmed by the estimates of the propensity score matching (PSM) approach. Our findings highlight that financial support through access to credit can encourage farmers’ land transfer-in decisions and further protect the limited arable land source.

Modern agricultural technologies hold huge potential for increasing productivity and reducing poverty in developing countries. However, adoption levels of these technologies have remained disappointingly low in Africa. This paper analyzes the effect of access to credit on the likelihood of adoption and use intensity of chemical fertilizers using data from large rural surveys in Ethiopia. Using a heteroscedasticity-based identification strategy to address the endogenous nature of access to credit, we find that access to credit has significant positive effects on adoption and intensity of use of chemical fertilizers. However, important heterogeneities are observed. Credit obtained from formal sources is more important for the intensity of use than for the decision to adopt chemical fertilizers. Credit taken with the primary purpose of financing agricultural inputs is more likely to promote adoption of chemical fertilizers than credit taken per se. Furthermore, reported credit effects are larger when estimated against the sample of credit-constrained non-users as compared with the pool of the whole sample of credit non-users. The results remain robust to several sensitivity analyses. Our results yield useful implications for the design, promotion, and targeting of credit services to leverage their effect on adoption of agricultural technologies.

This thesis examined Nigeria’s insolvency law as a tool for promoting access to credit. It reviewed relevant literature to show the method of capital formation and access to credit in Nigeria’s pre-colonial and colonial period. In the precolonial era, it showed that the indigenous credit system was unwritten; investment was in cash crops and personal labour. With the introduction of colonialism and banking systems, the indigenous credit institutions acquired some modern/innovative methods such as documentation of credit agreements, introduction of interest/high interest rates and forcible collection of debts. Colonialism also brought in its wake, legal transplantation. A record study formed part of the thesis. It adopted the survey method, using oral tradition, interviews and questionnaires to collect data. The population consisted of those who had utilized indigenous credit in Nigeria, using Rivers State as a case study. A sample of sixty participants was drawn from small and medium sized business owners. Only thirty-three responses were retrieved and analyzed. The result showed that there were doubts as to whether the indigenous credit arrangements can raise huge capital; most credits raised were not focused on production. It also showed that until the present day, the indigenous credit system was patronized by educated persons like university employees, and that professional money lenders were creations of colonialism, while indigenous money lending predated colonialism. The result also showed that whereas fifty-four percent had not obtained credit from banks or financial institutions, forty-two percent had obtained credit from indigenous credit sources. Also fifty-one percent of those that had not obtained loans from indigenous sources claimed that it was not due to accessibility problems, but due to the extortionist tendencies of the money lenders. It also identified that the desire to meet social responsibilities and to ‘survive’ has inflamed the need to create wealth sometimes through ‘get rich quick schemes’ which in turn has affected credit and enterprise. The thesis identified mechanisms adopted by the indigenous creditors to recover debts as: community action, extended family system, the Nigerian Police and juju shrine and witchcraft. It noted the inadequacy of Nigeria’s insolvency laws and advocated reforms which it stressed would serve as a collective debt recovery tool and also afford debtors the opportunity of a fresh start. It also recommended that there should be specialized insolvency law education and the use of intermediaries to facilitate education of Nigerians as to their rights and responsibilities as it pertains to insolvency issues.

This study assesses the role that access to credit plays in determining the uptake of adaptation measures in the agricultural sector. To this end, this meta-analysis synthesizes relevant studies contained in a recently published evidence gap map (EGM) on the effectiveness of climate change adaptation interventions in low- and middle-income countries. The results show a significant disparity of effects, with a large proportion of studies showing that credit-related variables do not significantly affect decisions to adopt adaptation measures. Furthermore, our meta-regression shows that certain study design elements have a strong correlation with the studies' results, such as estimation method, number of covariates and selection of control variables. We conclude that narrower definitions of credit variables, together with counterfactual study designs, should be used to obtain more reliable and robust evidence on the subject. From a policy perspective, access to credit, while important and relevant for building resilience and encouraging investments, might not be a sufficient factor in encouraging autonomous adaptation. When designing financial products, it is essential to consider the preferences among highly vulnerable households and individuals, who may channel resources towards other needs. Diese Studie untersucht die Rolle des Zugangs zu Krediten für die Aufnahme von Maßnahmen zur Anpassung an den Klimawandel im Agrarsektor. Dazu werden in dieser Metaanalyse die - für diese Forschungsfrage relevanten - Studien synthetisiert, welche in einer kürzlich veröffentlichten Karte der Evidenzlücken (Evidence Gap Map, EGM) über die Wirksamkeit von Anpassungsmaßnahmen in Ländern mit niedrigem und mittlerem Einkommen enthalten sind. Die Ergebnisse zeigen signifikante Unterschiede in den Auswirkungen. Ein großer Anteil der Studien zeigt, dass kreditbezogene Variablen die Entscheidungen zur Aufnahme von Anpassungsmaßnahmen nicht signifikant beeinflussen. Darüber hinaus zeigt eine Meta-Regression, dass bestimmte Elemente des Studiendesigns eine starke Korrelation mit den Ergebnissen der Studien aufweisen, wie beispielsweise die Schätzmethode, die Anzahl der Kovariaten und die Auswahl der Kontrollvariablen. Eine Schlussfolgerung ist, dass eine engere Definition der Variable "Zugang zu Krediten" zusammen mit kontrafaktischen Studiendesigns verwendet werden sollten, um zuverlässigere und robustere Evidenz zu diesem Thema zu generieren. Aus politischer Sicht ist der Zugang zu Krediten zwar wichtig und relevant für Resilienzstärkung und Investitionen, aber möglicherweise kein ausreichender Faktor zur Förderung autonomer Anpassung. Bei der Gestaltung von Finanzprodukten ist es von entscheidender Bedeutung, die Präferenzen von hochgradig vulnerablen Haushalten und Individuen zu berücksichtigen, die ihre Ressourcen möglicherweise für andere Bedürfnisse einsetzen.

Protected cultivation requires high initial investment and intensive use of inputs for crop production but offers better yield which in turn increases the profitability of the farm. The study attempts to explore the economics of protected cultivation with different interest rates regime and subsidy in Pune and Nasik districts of Maharashtra conducted during 2018-19. About 95 to 97 per cent of the farmers availed subsidy from the government and the rest of the farmers constructed their polyhouse and shade net house without subsidy. About 47 to 50 per cent of the total cost was given as subsidy. Heckman selection model showed that the factors such as years of education, farm size, farm income, membership and occupation were the major determinants of access to credit. The study also indicated that household age, farm size, farm income, distance from the market and access to subsidies were important drivers of technology adoption. Among all, the access to subsidy reflected the availability of external capital support as one of the determining factors for adoption of technology. The factors responsible for non-repayment of loans were increase in farm income, family size and years of schooling.

ilustraciones Dada la importancia del sector agrícola en las áreas rurales del país como fuente de ingreso y determinante en la calidad de vida, existe una gran necesidad de que este sector mejore sus niveles de productividad, los cuales son muy bajos en relación con su potencial y otros países de la región. Existen varias características que influyen sobre la productividad desde las meramente físicas relacionadas con la geografía hasta las decisiones de política pública de los gobiernos. Este trabajo se enfoca en el estudio del acceso al mercado crediticio e indagada por su efecto sobre la productividad agrícola, identificando en primera medida, algunas características particulares que determinan la participación y la aprobación de las solicitudes de financiamiento por parte de los productores, y, en segundo lugar, el impacto que este tiene sobre las distintas variables asociadas a la productividad cuando se posee un crédito y cuando no. Los resultados encontrados, a partir de los datos de tercer Censo Nacional Agropecuario (CNA), permiten identificar que, durante el año de recolección de los datos, la solicitud de préstamos entre los productores del país es muy baja, indicando que el uso de crédito para el desarrollo de actividades agrícolas es reducido. Asimismo, la destinación que se le dio a los recursos se enfocó mayormente en suplir gastos inmediatos de la producción y no en la adopción de maquinaria y mejoras tecnológicas que favorecieran la productividad. Por otra parte, mediante la estimación de un modelo de conmutación endógena (ESR) se pudo identificar que los poseedores de crédito obtienen un mejor resultado en productividad derivado del uso de maquinaria, indicando que el uso del crédito puede mejorar la productividad agrícola. Asimismo, se estudió el efecto del crédito en la productividad de algunos cultivos transitorios como el arroz verde, la yuca y la papa, encontrando que la financiación tiene un efecto positivo significativo en el arroz, mientras que en la papa y la yuca su impacto es negativo. Esta diferencia se atribuye a que la adopción de sistemas de riego en el cultivo de arroz es fundamental para el aumento de la producción, por lo cual los agricultores con acceso a crédito pueden adquirir más fácilmente este tipo de tecnologías; mientras que para los otros cultivos una adecuada fertilización es el principal determinante en la productividad. De acuerdo con los resultados obtenidos, se recomienda desarrollar líneas de crédito enfocadas en la adopción de maquinaria, especialmente para los pequeños agricultores; así como generar programas de asistencia técnica basados en los determinantes de la productividad de cada cultivo, con el fin de garantizar que los recursos crediticios se inviertan de manera eficiente. De igual manera, fortalecer la presencia de las entidades financieras en las áreas rurales más remotas y brindar asesoría para conocer y solicitar préstamos es de vital importancia en el acceso a crédito agrícola y el mejoramiento de la productividad. (Texto tomado de la fuente). Given the importance of the agricultural sector in rural areas of the country as a source of income and a determinant of quality of life, there is a great need for this sector to improve its levels of productivity, which are very low in relation to its potential and other countries in the region. There are several characteristics that influence productivity from the merely physical ones related to geography to the public policy decisions of governments. This work focuses on the study of access to the credit market and investigates its effect on agricultural productivity, firstly identifying some particular characteristics that determine the participation and approval of financing requests by producers, and, secondly, the impact that this has on the different variables associated with productivity when you have a loan and when you don't. The results found, from the data of the third National Agricultural Census (CNA), allow us to identify that, during the year of data collection, the request for loans among the country's producers is very low, indicating that the use of credit for the development of agricultural activities is reduced. Likewise, the destination that was given to the resources was mainly focused on meeting immediate production expenses and not on the adoption of machinery and technological improvements that favored productivity. On the other hand, by estimating an endogenous commutation model (ESR) it was possible to identify that credit holders obtain a better result in productivity derived from the use of machinery, indicating that the use of credit can improve agricultural productivity. Likewise, the effect of credit on the productivity of some transitory crops such as green rice, cassava and potatoes was studied, finding that financing has a significant positive effect on rice, while on potatoes and cassava its impact is negative. This difference is attributed to the fact that the adoption of irrigation systems in rice cultivation is essential for increasing production, for which reason farmers with access to credit can more easily acquire this type of technology; while for other crops adequate fertilization is the main determinant of productivity. According to the results obtained, it is recommended to develop lines of credit focused on the adoption of machinery, especially for small farmers; as well as generate technical assistance programs based on the determinants of the productivity of each crop, in order to guarantee that credit resources are invested efficiently. Similarly, strengthening the presence of financial institutions in the most remote rural areas and providing advice to know and request loans is of vital importance in access to agricultural credit and the improvement of productivity. Maestría Magister en Ciencias Económicas Economía agrícola

Based on the micro-financial perspective of optimizing householdresource allocation, combined with Becker’s family theory, this paperexamines the impact of broader access to credit and capital marketon household decisions with respect to the number of children by constructinga revised four-period life cycle model. The results show thatloosening borrowing constraints significantly promotes the fertility rate,while opportunities for financial investment inhibits the fertility rate.We find that disposable income weakens the direct positive impact ofcredit quota and promotes the direct negative impact of on fertility.The excessive consumption of households strengthens credit constraintsand encourages household consumption, which accelerates a crowdingout effect on fertility. In addition, endowment insurance prompts households’investment in the capital market, which suppresses reproductivebehavior.

Access to credit, with its multiple implications in terms of financial and social inclusion (the latter especially when consumers are involved), has been subject to important interventions at the outbreak of the COVID-19 pandemic crisis. The paper examines the impact of these ���emergency��� measures on the existing framework of private law regulating loans and the opposition of interests which follow from the adoption of these policies. It also evaluates more in general the role of financial institutions as actors, often on behalf of the State, in the governance of emergency situations., Roma Tre Law Review ��� 02/2021

It has been sufficiently established in law and finance literature that an effective legal framework that governs non-possessory security transactions is a key component in the realization of financial inclusion and affordable access to credit in market economies. Recently, the Nigerian lawmakers enacted the Secured Transactions in Movable Assets Act 2017 (STMA), which was modelled after the United States’ Article 9 of the Uniform Commercial Code (UCC Article 9) and its unitary-functional approach to security interests. Arguably, some of the STMA’s provisions are defective: they do not reflect the local conditions in Nigeria and are likely to frustrate its section 1 aim of broadening access to credit for individuals and small businesses. The STMA recognizes registration as the main method of perfection: yet there are multiple but unlinked movable collateral registries in Nigeria which ultimately constitute a breeding ground for secret liens. This article argues that the relegation of other perfection methods, such as ‘possession’ and ‘control’, will diminish the economic success of the reformed law. It calls for a reconsideration of the rules governing publicity and the perfection of security interests under the STMA with insights and lessons from the UCC Article 9 and its underlying case law.

An increase in lending interest rates means a rise in the price of borrowing money. It indicates a rise in the cost of running small and medium enterprises (SMEs) due to servicing of interest and eventually payment of the principal. This causes consumers to cut their expenditures leading to a fall in business sales. This is given that, high lending rates affect business through the influence on both their own direct costs and the ability of the SMEs to borrow and spend. The main objective of the study is to assess the access to credit by SMEs, as well as, how lending interest rate policy affects them. The results of this literature review indicate that the access to credit positively influences growth of SMEs. There is, as well, credit rationing as the lenders determine the amount of credit to allocate and interest to charge based on the probability of default. Finally low levels of credit demand by enterprise in are brought by lack of information about credit.

The purpose of this study was to examine factors that determine micro- and small-scale enterprises’ financing preference in line with pecking order theory and access to credit in Benishangul-Gumuz Regional State of Ethiopia. The study used primary data collected using cross-sectional survey questionnaire. The sample of this study was 296 enterprises selected using proportional stratified random sampling technique. The data were analyzed using descriptive and logistic regression analysis. The results of probit estimation revealed that business experience, collateral, gender, motivation and enterprises’ sectoral engagement affect financing preference. To investigate access to credit determinants, only enterprises that need to raise capital through credit were considered. The empirical results, therefore, revealed that business experience, size, sectoral engagement, collateral, interest rate, loan repayment period, and preparation of business plan, financial reporting, location and educational background of entrepreneurs affect access to credit of enterprises. Before any generalization of the results can be made, more evidence is needed on enterprises’ financing preference and access to credit determinants for the fact that the empirical tests were conducted only on 296 entrepreneurs since 2019. Therefore, the findings are valid and practicable only for the entrepreneurs under the study and the results cannot be assumed to extend beyond this group of entrepreneurs to different study periods. The study makes an original contribution to the literature of small business finance by investigating determinants of micro- and small-scale enterprises’ financing preference and access to credit in Benishangul Gumuz Regional State of Ethiopia as a developing country.

We study the impact of the Community Reinvestment Act (CRA) on access to consumer credit since 1999 using an individual-level panel and three distinct identification strategies: a regression discontinuity design centered on a CRA-eligibility cutoff; a comparison of neighboring census blocks; and an event study of changes in eligibility. All three rule out a significant effect of the CRA on consumer borrowing. We show that this is in part explained by a shift in mortgages from nonbanks, which are free from CRA obligations, to banks in need of CRA-eligible mortgages. Our findings underscore the pitfalls of a circumscribed regulatory regime.

https://xianshiyoudaxuexuebao.com/detail.php?id=DOI:10.17605/OSF.IO/CTSZA

The aims of this paper is to analyze the effect of access to credit on the technical efficiency of farms in Cameroon’s rural area. Using a sample of 545 farm households, we first estimate a Data Envelopment Analysis (DEA) model with constant returns to scale; then a censored TOBIT model enabling us to identify factors of efficiency, especially the effect of access to credit on efficiency. Two main results emerge from our analysis. First, we find that on average, the level of technical efficiency of farms is 56.78%; showing therefore the possibility of substantial efficiency gains. Second, farm size, association membership, and fertilizer expenditure negatively affect technical efficiency, while access to credit, age and education increase it. Based on these results, we believe that it’s interesting for farm householders to organize themselves in associations to benefit from available credits and financial facilities and to share their experiences in the agricultural field in order to improve their efficiency.

This thesis comprises three essays on access to credit and the impact of financial shocks in Nigeria. In the first essay, we examine the impact of the Central Bank of Nigeria’s (CBN) development fund initiative on access to credit for Micro, Small and Medium (MSM) firms using data from the World Bank Enterprise survey for Nigeria. The key findings reveal that the Micro, Small and Medium Enterprise Development Fund (MSMEDF) had a positive effect on access to bank credit by firms. The programme is estimated to have increased the incidence of loan take-up by firms during the period of the study. The second essay investigates whether there is a gender dimension to small- and medium-sized enterprise (SMEs) credit market participation and loan success in Nigeria. The findings reveal evidence of an unequal treatment in loan success in those firms that were 100% female owned. The findings reveal that exclusively female-owned firms are not constrained in applying for loans, but are less likely to be successful in their loan application compared to male-owned firms. The third essay examines the impact of unanticipated shocks on household welfare measures in Nigeria. Using the General Household Survey (GHS) data for Nigeria, we exploit the increase in prices of food items as a measure of financial shock in combination with personal and local shocks to investigate their impact on household-level food and non-food expenditures, household assets, savings and food poverty. The empirical analysis reveals that financial shocks exert the most influence on household welfare measures, and household assets play a key role as a shock absorber in providing some resilience to households in the event of a shock.