Credit Demand and Credit Rationing in the Informal Financial Sector in Uganda1

Okurut, Francis Nathan; Schoombee, Andrie; Berg, Servaas van der

doi:10.1111/j.1813-6982.2005.00033.x

Cited by 58 publications

(49 citation statements)

References 49 publications

(143 reference statements)

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“…Private investment depends basically on access to financial resources. Following Okurut, Schoombee and Berg (2005), credit may increase production capacities through the funding of investment on capital. Financial resources come primarily from the banking sector in developed countries, but in poor and developing countries (like those in our Table 2 show the importance of these two variables (credit and MF).…”

Section: Econometric Results: the Impact Of Oda And Mf On Economic Grmentioning

confidence: 99%

“…We begin by recognising that economic activity or economic growth is impossible without financing (Hermes and Meesters 2011;Roodman 2012). In comparison to the argument by Schumpeter (1934) that financial intermediation spurs growth by identifying and funding productive investments, MF funds productive microenterprises for the poor through the funding of investment in physical capital (Okurut, Schoombee, and Berg 2005).…”

Section: Foreign Aid and Economic Growthmentioning

confidence: 98%

“…Khandker (2005) and Mahjabeen (2008) report that MF appears to play a very significant role in increasing income and consumption. Based on these arguments, the transmission mechanism from MF to growth may occur primarily through productive private investment and secondarily through private consumption (Khandker 2005;Okurut, Schoombee, and Berg 2005;Mahjabeen 2008). …”

Section: Foreign Aid and Economic Growthmentioning

confidence: 99%

See 2 more Smart Citations

A comparative analysis of the effect of aid and microfinance on growth

Lacalle-Calderón

Chasco

Alfonso-Gil

et al. 2015

Canadian Journal of Development Studies / Revue canadienne d'ét

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Section: Econometric Results: the Impact Of Oda And Mf On Economic Grmentioning

confidence: 99%

Section: Foreign Aid and Economic Growthmentioning

confidence: 98%

Section: Foreign Aid and Economic Growthmentioning

confidence: 99%

See 1 more Smart Citation

A comparative analysis of the effect of aid and microfinance on growth

Lacalle-Calderón

Chasco

Alfonso-Gil

et al. 2015

Canadian Journal of Development Studies / Revue canadienne d'ét

View full text Add to dashboard Cite

“…Realizing the situation, Nunung et al (2005) emphasize that there is a need for an empirical study to analyze the factors that determine household especially women participation in credit programme. Okurut et al (2004) point out that socio-economic factors play a key role in determining whether credit is applied for, the amount applied for, the amount of credit provided, and credit rationing (the difference between the amount applied for and the amount of credit obtained). These related issues are worth to explore.…”

Section: Socio-economic Constraintsmentioning

confidence: 99%

Socio‐economic constraints to demand for borrowing among rural females of Pakistan

Fatima

2009

International Journal of Social Economics

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to investigate how many rural women have access to finance. It also explores the additional constraint faced by them in accessing the credit. Design/methodology/approach -For the estimation purpose, multivariate logit regression is used, taking borrowing any credit as dependent variable. Findings -Results indicate that women lack easier access to formal credit and the socio-economic, cultural background of the family significantly impact probability of borrowing. More specifically, result indicates that female own age, marital status and employment bring self-confidence and reliability that encourage female borrowing. Research limitations/implications -In the absence of any recent nation-wide data about micro-credit, cross-section survey, the Rural Financial Market Survey is used to examine the factors affecting the demand for borrowing. Practical implications -This paper proposes that government should implement education programmes in order to create awareness towards role of women in economic development. Moreover, to overcome the cultural constraints, information should also be disseminated through influential media. Originality/value -While it is widely recognized that, demand for credit is severely affected by socio-economic, cultural and personal characteristics, this has rarely been confirmed earlier. There are numbers of studies documented on borrowing all focus on the issue of formal and informal sources ignoring the above determinants. This paper attempts to do so.

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“…In addition, Okurut et al (2005) employed a logit model to investigate factors that influence both credit demand and supply in Uganda by using observed household and individual characteristics. The household characteristics that influenced demand included age, education, and household expenditure per adult equivalent.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors influencing agricultural credit demand in Northern Ghana

Hananu¹,

Abdallah²,

Zakaria³

2015

Afr. J. Agric. Res.

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The greatest challenge to food security is low productivity emanating from slow growth in the agricultural sector and one of the reasons for this is little or no access to financial resources by producers. Credit is one of the empowerment tools that have the potential to boost the productivity, increase food security and change the life of farmers from a situation of abject poverty to a more dignified life in the long run. Using a household survey data from United State Agency for International Development's feed the future initiative; this study employed the logistic regression model to investigate the factors influencing households' demand for agricultural credit placing much emphasis on membership to organization. A total sample size of 2,330 farm households selected from Northern Ghana was used. The results of the logistic regression model revealed significant and positive variables such as age, education, group membership and source of credit. We therefore call on stakeholders to encourage formation of cooperative groups to enable farmers pull resources together or streamline loan application procedures, intensify education of farmers on loan procedures and promote flexibility in types of collateral demanded by financial institutions in order to enhance access.

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Credit Demand and Credit Rationing in the Informal Financial Sector in Uganda1

Cited by 58 publications

References 49 publications

A comparative analysis of the effect of aid and microfinance on growth

A comparative analysis of the effect of aid and microfinance on growth

Socio‐economic constraints to demand for borrowing among rural females of Pakistan

Factors influencing agricultural credit demand in Northern Ghana

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