Skip navigation

Publications & Research :: Policy Research Working Paper

Does Institutional Finance Matter for Agriculture? Evidence Using Panel Data from Uganda

ACCESS TO CREDIT ACCESS TO INFORMATION ACCESS TO LENDERS ACCESSIBILITY AGRICULTURAL ACTIVITY AGRICULTURAL BANKS AGRICULTURAL CREDIT AGRICULTURAL ECONOMICS AGRICULTURAL FINANCE AGRICULTURAL MARKETS AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURE ASSETS AVAILABILITY OF CREDIT BANK CREDIT BANKS BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL CREDIT CONTRACTUAL RELATIONS COOPERATIVE CREDIT COOPERATIVE LENDING COOPERATIVES CREDIT ACCESS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT COOPERATIVE CREDIT DELIVERY CREDIT FACILITY CREDIT MARKET CREDIT MARKET ACCESS CREDIT MARKETS CREDIT PROGRAMS CREDIT SCHEMES DEBT DEMAND FOR CREDIT DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISEQUILIBRIUM DIVERSIFICATION EARNINGS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EMPLOYER ENDOWMENTS ENTREPRENEURS ETHNIC GROUPS EXCLUSION EXPENDITURE FARM ENTERPRISES FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SERVICES FORMAL BANKS FORMAL FINANCE FORMS OF CREDIT GDP GENDER GROSS DOMESTIC PRODUCT HOMEOWNERSHIP HOUSEHOLD INCOME HOUSEHOLDS HOUSING INFLATION INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR FORCE LABOR MARKET LABOR SUPPLY LACK OF ACCESS LIMITED ACCESS LINES OF CREDIT LIQUIDITY LOAN LOANS TO FARMERS LOCAL FINANCIAL INSTITUTIONS MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MONEYLENDERS MOTIVATION POINT-OF-SALE POLITICAL ECONOMY PRODUCTION CREDIT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS RURAL CREDIT RURAL CREDIT COOPERATIVES RURAL FINANCE RURAL FINANCIAL SERVICES SAVINGS SELF-EMPLOYMENT SMALLHOLDER SMALLHOLDER AGRICULTURE SMALLHOLDER FARMERS SMALLHOLDERS SMOOTHING CONSUMPTION SOURCES OF INCOME SUPPLY CHAINS UNION URBAN AREAS VILLAGE VILLAGES WAGES
103
0

Attachments [ 0 ]

There are no files associated with this item.

More Details

World Bank, Washington, DC
Africa | Uganda
2014-06-30T16:49:41Z | 2014-06-30T16:49:41Z | 2014-06

Smallholder agriculture in many developing countries has remained largely self-financed. However, improved productivity for attaining greater food security requires better access to institutional credit. Past efforts to extend institutional credit to smaller farmers has failed for several reasons, including subsidized operation of government-aided credit schemes. Thus, recent efforts to expand credit for smallholder agriculture that rely on innovative credit delivery schemes at market prices have received much policy interest. However, thus far the impacts of these efforts are not fully understood. This study examines credit for smallholder agriculture in the context of Uganda, where agriculture is about 35 percent of gross domestic product, most farmers are smallholders, and the country has introduced policies since 2005 to extend credit access to the sector. The analysis uses newly available household panel data from Uganda for 2005-2006 and 2009-2010 to examine (a) whether credit effectively targets agriculture, by examining determinants of borrowing across different sources; (b) agricultural and nonagricultural determinants of supply and demand credit constraints among non-borrowers; and (c) the effects of borrowing and credit constraints on household income, consumption, and agricultural outcomes. The analysis finds that although not many households report borrowing specifically for agriculture, credit is fungible and agricultural outcomes do substantially improve with institutional borrowing, particularly microcredit. Among non-borrowers, supply and demand credit constraints have fallen considerably over the period, particularly in rural areas. Access to institutions and infrastructure play a strong role in alleviating the negative effect of credit constraints on welfare outcomes, as well as determining the source of lending among borrowing households.

Comments

(Leave your comments here about this item.)

Item Analytics

Select desired time period