The Credit Constraints of Market-Oriented Farmers in Chile

A. Reyes, B.W. Lensink

Research output: Contribution to journalArticleAcademicpeer-review

11 Citations (Scopus)

Abstract

Using data from two surveys conducted in 2006 and 2008 with 177 farmers, this article determines whether market-oriented farmers in central Chile are credit constrained, and it identifies the main factors that influence formal credit provision. In so doing, this study explicitly tests whether social capital variables play a role in determining credit constraints. That is, the authors explore the determinants of classifications into four categories of credit provision and rationing, using a panel multinomial logit model. The results suggest that most market-oriented farmers are unconstrained. Empirical evidence supports the importance of relationship variables for improving access to financial capital
Original languageEnglish
Pages (from-to)1851-1868
JournalJournal of Development Studies
Volume47
Issue number12
DOIs
Publication statusPublished - 2011

Keywords

  • imperfect information
  • rural credit
  • peruvian agriculture
  • bank loans
  • short-term
  • choice
  • debt
  • reputation
  • impact

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