Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit

This paper analyzes the mechanism underlying access to credit, focusing on two important aspects of rural credit markets. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and, more recently, micro-lending institutions. Se...

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Main Author:	Gine, Xavier
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180
Online Access:	http://hdl.handle.net/10986/5777

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recordtype	oai_dc
spelling	okr-10986-57772021-04-23T14:02:23Z Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit Gine, Xavier Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 This paper analyzes the mechanism underlying access to credit, focusing on two important aspects of rural credit markets. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and, more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs in obtaining external credit. We develop and estimate a model based on limited enforcement and transaction costs that provides a unified view of these facts. Based on data from Thailand, the results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders. 2012-03-30T07:34:29Z 2012-03-30T07:34:29Z 2011 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5777 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Thailand
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Gine, Xavier Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
geographic_facet	Thailand
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper analyzes the mechanism underlying access to credit, focusing on two important aspects of rural credit markets. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and, more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs in obtaining external credit. We develop and estimate a model based on limited enforcement and transaction costs that provides a unified view of these facts. Based on data from Thailand, the results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders.
format	Journal Article
author	Gine, Xavier
author_facet	Gine, Xavier
author_sort	Gine, Xavier
title	Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
title_short	Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
title_full	Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
title_fullStr	Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
title_full_unstemmed	Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit
title_sort	access to capital in rural thailand: an estimated model of formal vs informal credit
publishDate	2012
url	http://hdl.handle.net/10986/5777
_version_	1764396259497476096

Access to Capital in Rural Thailand: An Estimated Model of Formal vs Informal Credit

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