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Can land inequality and land reforms affect agricultural credit access? Evidence from Mexico state-level data, 1940-1960

Author

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  • Bárbara Tundidor

    (Universidad Carlos III, Madrid)

Abstract

High land inequality can lead to lower access to credit in rural populations, as they lack a collateral. In the case of Mexico, the concentration of land and a shortage of agricultural credit caused the rural population to seem less creditworthy; the Mexican agrarian reform was designed to resolve this inequality and lack of resources. Using the Mexican’s original agricultural censuses, a new dataset on land inequality and the flow of agricultur-al credit is provided for each Mexican state. With this unique data set, this article analyses if the agrarian re-form was successful in its early years, by helping to reduce land inequality, and if access to credit was improved by reducing land inequality. The results show that, although harmful, land inequality did not affect credit ac-cess. Access to credit probably depended on political factors instead. KEY Classification-JEL: N26; N56; Q14; Q15

Suggested Citation

  • Bárbara Tundidor, 2024. "Can land inequality and land reforms affect agricultural credit access? Evidence from Mexico state-level data, 1940-1960," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 20(02), pages 18-32.
    • Handle: RePEc:ahe:invest:v:20:y:2024:i:02:p:18-32
    DOI: https://doi.org/10.33231/j.ihe.2023.02.001
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    More about this item

    Keywords

    Land inequality; Agricultural Credit; Land Reform; Mexico.;
    All these keywords.

    JEL classification:

    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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