Effects of Credit Constraints on Productivity and Rural Household Income in China
Effects of Credit Constraints on Productivity and Rural Household Income in China

Author: Fengxia Dong

Publisher:

Published: 2010

Total Pages: 21

ISBN-13:

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Agricultural production is strongly conditioned by the fact that inputs are transformed into outputs with considerable time lags, causing the rural household to balance its budget during the season when there are high expenditures for input purchases and consumption and few revenues. With limited access to credit, the budget balance within the year can become a constraint to agricultural production. As is the case in many developing countries, Chinese rural households have been suffering from a lack of access to capital. While China is one of the biggest countries in terms of rural areas and agricultural production, few studies have focused on the impact of credit on agriculture in China. Using survey data, this study aims to examine how credit constraints currently affect agricultural productivity and rural household income in China. The study findings suggest that under credit constraints, production inputs, along with farmers' capabilities and education, cannot be fully employed. By removing credit constraints, agricultural productivity and rural household income can be improved.

China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach
China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach

Author: Min Zhu

Publisher: International Monetary Fund

Published: 2019-11-27

Total Pages: 46

ISBN-13: 1513515357

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China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.

Agricultural productivity in Africa
Agricultural productivity in Africa

Author: Benin, Samuel

Publisher: Intl Food Policy Res Inst

Published: 2016-07-14

Total Pages: 386

ISBN-13: 0896298817

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Agricultural Productivity in Africa: Trends, Patterns, and Determinants presents updated and new analyses of land, labor, and total productivity trends in African agriculture. It brings together analyses of a unique mix of data sources and evaluations of public policies and development projects to recommend ways to increase agricultural productivity in Africa. This book is timely in light of the recent and ongoing growth recovery across the continent. The good news is that agricultural productivity in Africa increased at a moderate rate between 1961 and 2012, although there are variations in the rate of growth in land, labor, and total factor productivities depending on country and region. Differences in input use and capital intensities in agricultural production in the various farming systems and agricultural productivity zones also affect advancements in technology. One conclusion based on the book’s research findings derives from the substantial spatial variation in agricultural productivity. For areas with similar agricultural productivity growth trends and factors, what works well in one area can be used as the basis for formulating best-fit, location-specific agricultural policies, investments, and interventions in similar areas. This finding along with others will be of particular interest to policy- and decisionmakers.

Agricultural Input Subsidies
Agricultural Input Subsidies

Author: Ephraim Chirwa

Publisher: Oxford University Press, USA

Published: 2013-09-26

Total Pages: 315

ISBN-13: 0199683522

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This book takes forward our understanding of agricultural input subsidies in low income countries.

Sustainability of a Government Targeted Credit Program
Sustainability of a Government Targeted Credit Program

Author: Shahidur R. Khandker

Publisher: World Bank Publications

Published: 1995-01-01

Total Pages: 114

ISBN-13: 9780821335161

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World Bank Technical Paper No. 304. Reviews the status and availability in developing countries of photovoltaic (PV) technology and looks at the prospects for using this technology in light of current energy use and costs of other energy sources. The report provides the necessary background information and highlights the questions raised and the calculations that must be made whenever PV applications are being considered in the developing world

Credit Supply and Productivity Growth
Credit Supply and Productivity Growth

Author: Francesco Manaresi

Publisher: International Monetary Fund

Published: 2019-05-17

Total Pages: 75

ISBN-13: 1498315917

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We study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP.

Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey
Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey

Author: Kumar, Anjani

Publisher: Intl Food Policy Res Inst

Published: 2017-03-02

Total Pages: 36

ISBN-13:

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A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhancing the flow of institutional credit to agriculture, the links between institutional credit and net farm income and consumption expenditures in India are not very well documented. Using a large national farm household–level dataset and instrumental variables two-stage least squares estimation methods, we investigate the impact of institutional farm credit on farm income and farm household consumption expenditures. Our findings show that in India, formal credit is indeed playing a critical role in increasing both the net farm income and per capita monthly household expenditures of Indian farm families. We also find that, in the presence of formal credit, social safety net programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) may have unintended consequences. In particular, MGNREGA reduces both net farm income and per capita monthly household consumption expenditures. In contrast, in the presence of formal credit, the Public Distribution System may increase both net farm income and per capita monthly household consumption expenditures.

Reaching Out
Reaching Out

Author:

Publisher: World Bank Publications

Published: 2005

Total Pages: 52

ISBN-13:

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"The authors (1) present new indicators of banking sector penetration across 99 countries based on a survey of bank regulatory authorities, (2) show that these indicators predict household and firm use of banking services, (3) explore the association between the outreach indicators and measures of financial, institutional, and infrastructure development across countries, and (4) relate these banking outreach indicators to measures of firms' financing constraints. In particular, they find that greater outreach is correlated with standard measures of financial development, as well as with economic activity. Controlling for these factors, the authors find that better communication and transport infrastructure and better governance are also associated with greater outreach. Government ownership of financial institutions translates into lower access, while more concentrated banking systems are associated with greater outreach. Finally, firms in countries with higher branch and ATM penetration and higher use of loan services report lower financing obstacles, thus linking banking sector outreach to the alleviation of firms' financing constraints. "--World Bank web site.