Persistence of Informal Credit in Rural Karnataka, India-Some Evidences from Primary Data

• Autores: Suresh Mani, P. Raja lingam Goud
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 5, 2023 (Ejemplar dedicado a: Continuous publication; e01897)
• Idioma: inglés
• DOI: 10.26668/businessreview/2023.v8i5.2071
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose: The aim of the study is to examine the rural credit markets in Karnataka region in India. The rural credit structure in India consists of two sectors-formal and informal.  This study focuses on understanding farm credit and mixed households (households with farm and non-farm workers) in the rural economy in terms of socioeconomic status, credit structure, linkage, and so on.

      Design/methodology/approach: A quantitative research approach and a cross-sectional research design were adopted in the study. Primary Data on 100 households collected from two villages in Karnataka India. An attempt was made to understand the difference between informal and formal credit between two villages using cross tabulation and percentage analysis.

      Findings: The results shows the role of informal credit has declined, it still holds a large share in the rural economy. There is a significant difference between loans give agricultural and mixed households. The results showed that the interlinked credit transactions are less in the developed village, while such transactions are highly prevalent in the backward village   Originality/value: The study based on recent changes pertaining to credit markets in the rural Karnataka.

• Referencias bibliográficas
  • Barba Aldo & Giancarlo de Vivo(2012), “An Unproductive labour”view of finance,”Cambridge Journal of Economics,Vol.36,no.6,pp 1479-96.
  • Bardhan, P. and A. Rudra( 1978) Interlinkage of land, labor and credit relations: An analysis of village survey data in East India, Economic...
  • Bardhan, P. and A. Rudra, 1978, Interlinkage of land, labor and credit relations: An analysis of village survey data in East India, Economic...
  • Basu, K. (1983)‘The Emergence of Isolation and Interlinkage in Rural Markets’, Oxford Economic Papers, 35(2): 262–80
  • Basu,K & Bell,C(1991), “Fragmented duopoly: Theory and Application to backward agriculture”,Journal of Development Economics ,36 145-65
  • Bell, C. and Srinivasan, T.N. (1989), “Interlinked Transactions in Rural Markets: An Empirical Study of Andhra Pradesh, Bihar and Punjab”,...
  • Bhaduri, A (1984): The Economic Strutcture of Backwvard Agriculture, Macmillan, Delhi
  • Bharadwaj, K (1974): Production Conditions in Indian Agriculture: A Study Based on Farm Management Surveys, Cambridge University Press, Cambridge
  • Binswanger, H.P., McIntire, J., and C. Udry(1989)Production relations in semi-arid African agriculture, in P. Bardhan (Ed.), The Economic...
  • Braverman, A., and L.J. Guasch(1993) Administrative Failures in Government Credit Programs, The Economics of Rural Organisation: Theory, Practice,...
  • Burgess R and R.Pande and G.Wong(2004),Banking for the Poor: Evidence from India,EEA meetings,22 September
  • Burgess R and R.Pande(2003), “Do Rural Banks Matter?,Evidence from the Indian Social Banking Experiment”,CMPO Working Paper Series No.04/104
  • Deb, S. and Rajeev, M. (2007), “Banking on “Baniyas” for Credit”, Economic and Political Weekly, January 27.
  • Eschenbach F(2004), “Finance and Growth:A Survey of the Theoretical and Empirical Literature,”Tinbergen Institute Discussion Paper,TI 2004-039/2
  • Gill,Anita(2004), “Interlinked Agrarian Credit Markets: Case Study of Punjab,Economic and Political Weekly,Vol.39,No.33,pp.3741-3751.
  • Komicha, H. H. (2007), Farm Household Economic Behavior in Imperfect Financial Markets, Doctoral Thesis, Swedish University of Agricultural...
  • Herring, R (1977): 'Land Tenure and Credit- Capital Tenure in Contemporary India' in R E Frykenberg (ed), Land Tenure and Peasantis...
  • Jodha, N.S.(1979),Some aspects of agricultural tenancy in semi-arid tropical parts of India (paper presented at the ADC-ICRISAT Conference...
  • Hussein Qassem Zahraa, Al-Marzouk Hussein Khaled , Mahmood A. Ehab (2022),The Impact of Bank Credit On Investment And Public Spending In Iraq...
  • Jodhka.S. Surinder(1995) Who Borrows? Who Lends? Changing Structure of Informal Credit in Rural Haryana,Economic and Political Weekly , Sep....
  • Jacob Jain,Munusamy Shanmugam(2022),The Role Of Micro-Enterprises In The Four-Dimensional Framework Of Women's Empowerment,7(4) e0539...
  • Majundar N.A (1999) “Reviving Rural Credit”,Economic and Political Weekly,June 19,pp 1577-1579
  • Mohapatra, K. (1994), “Land, Labour and Credit Market Interlocking: A Study of Orissa Agriculture”, Indian Journal of Agricultural Economics,...
  • Narayana Reddy, M.V. (1992), “Interlinkages of Credit with Factor and Product Markets: A study in Andhra Pradesh”, Indian Journal of Agricultural...
  • Prasad,P( 1974): 'Reactionary Role of Usurer's Capital in Rural India', Economic and Politicail Weeklv, August (Special Number).
  • Saleem,S.T (1987) On the determination of Interest rates in rural credit markets: A case study from the Sudan,Cambridge Journal of Economics...
  • Sarap, K. (1991), Interlinked Agrarian Markets in Rural India, Sage Publication, New Delhi.
  • Stiglitz, J E (1974): 'Incentives and Risk Sharing in Sharecropping,’Review of Economics Studies,Vol.41.
  • Swaminathan, M(1991), "Segmentation, collateral undervaluation, and the rate of interest in agrarian credit markets: some evidence from...
  • Swain, M. (1999),“Agricultural Tenancy and Interlinked Transactions: Neoclassical and Maxist Approaches”, Part I and Part II, Economic and...
  • Thorner. D ( 1964): Agricultural Co-operatives in India, Asia, Bombay.