Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda

Elimination of all constraints could increase output by 17%. Implications for policy and research are spelled out

From:
Department for International Development
Published
1 January 2014
Country:
Rwanda
Document Type:
Journal Article
Theme:
Agriculture, Economic Growth
Authors:
Deininger, K., Ali, D.A., Duponchel, M.

Abstract

While potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. We use a direct elicitation approach on a national sample of Rwandan rural households to empirically assess the extent and nature of credit rationing in the semi-formal sector and its impact, using an endogenous switching model. Elimination of all constraints could increase output by some 17 per cent. Implications for policy and research are spelled out.

Citation

Ali, D.A.; Deininger, K.; Duponchel, M. Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda. Journal of Development Studies (2014) 50 (5) 649-665. [DOI: 10.1080/00220388.2014.887687]

Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda

Published 1 January 2014
Contents