IDEAS home Printed from https://ideas.repec.org/a/bla/sajeco/v73y2005i3p482-497.html
   My bibliography  Save this article

Credit Demand And Credit Rationing In The Informal Financial Sector In Uganda1

Author

Listed:
  • F.N. OKURUT
  • A. SCHOOMBEE
  • S. VAN DER BERG

Abstract

This paper investigates the household and individual characteristics that influence the demand and supply of informal credit in Uganda, which credit is important for improving the welfare of the poor. Informal credit demand is positively and significantly influenced by age, sex, education level, dependency ratio, household expenditure, and regional location. On the supply side, informal lenders' credit rationing behaviour is negatively and significantly influenced by age, sex, asset values, and regional location. Government policies should focus on increasing both the productive capacity and wealth of households in order to enhance the poor's creditworthiness and make them less susceptible to credit rationing by lenders.

Suggested Citation

  • F.N. Okurut & A. Schoombee & S. Van Der Berg, 2005. "Credit Demand And Credit Rationing In The Informal Financial Sector In Uganda1," South African Journal of Economics, Economic Society of South Africa, vol. 73(3), pages 482-497, September.
    • Handle: RePEc:bla:sajeco:v:73:y:2005:i:3:p:482-497
    DOI: 10.1111/j.1813-6982.2005.00033.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1813-6982.2005.00033.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1813-6982.2005.00033.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Lawson & Andy Mckay & John Okidi, 2006. "Poverty persistence and transitions in Uganda: A combined qualitative and quantitative analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1225-1251.
    2. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890.
    3. repec:ilo:ilowps:357690 is not listed on IDEAS
    4. Aliber, Michael., 2002. "Informal finance in the informal economy : promoting decent work among the working poor," ILO Working Papers 993576903402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faisal Buyinza & John Mutenyo & Anthony Tibaingana, 2018. "Factors Affecting Access to Formal Credit by Micro and Small Enterprises in Uganda," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(4), pages 405-424, October.
    2. Balana, Bedru & Oyeyemi, Motunrayo, 2021. "Credit Constraints and Adoption of Agricultural Technologies in Developing Countries? Evidence from Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315347, International Association of Agricultural Economists.
    3. Olorunfemi Oladapo OGUNDELE & Muslihah Adepeju BADMUS, 2020. "Gender Gap and Credit Use in Smallholder Agriculture in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(9), pages 355-362, September.
    4. Ezra, Munyambonera & Annet, Adong & Musa Mayanja, Lwanga, 2013. "Access and Use of Credit in Uganda: Unlocking the Dilemma of Financing Small Holder Farmers," Research Series 184167, Economic Policy Research Centre (EPRC).
    5. Raccanello, Kristiano & Romero-García, David Arturo, 2012. "Prácticas predatorias y crédito al consumidor," eseconomía, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(36), pages 7-43, cuarto tr.
    6. Olomola, Aderibigbe S., 2014. "Determinants of Agro-Dealers’ Participation in the Loan Market in Nigeria," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-20, September.
    7. Togba, Edith Leadaut, 2012. "Microfinance and households access to credit: Evidence from Côte d’Ivoire," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 473-486.
    8. Emmanuel Tetteh Jumpah & Abdulai Adams, 2020. "Resolving the Constraints in Accessing Microcredit: The Neglected Views of the Smallholder Farmers," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 5(1), pages 1-15, March.
    9. Jihwan Kim, 2018. "Dissonance between formal and informal housing capital: The case of Korea," Environment and Planning A, , vol. 50(6), pages 1171-1188, September.
    10. Rajlakshmi Mallik, 2015. "Being Credit Rationed: Delay and Transaction Cost," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 17(02), pages 1-28.
    11. Most. Nilufa Khatun, 2019. "What are the Drivers Influencing Smallholder Farmers Access to Formal Credit System? Empirical Evidence from Bangladesh," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(3), pages 162-170, September.
    12. Aroosa Khan & Muhammad Shaukat Malik, 2020. "Micro-Financing: A Comparative Study of Bangladesh & Pakistan," Business and Economic Research, Macrothink Institute, vol. 10(3), pages 181-202, September.
    13. Ta Nhat Linh & Dang Anh Tuan & Phan Thu Trang & Hoang Trung Lai & Do Quynh Anh & Nguyen Viet Cuong & Philippe Lebailly, 2020. "Determinants of Farming Households’ Credit Accessibility in Rural Areas of Vietnam: A Case Study in Haiphong City, Vietnam," Sustainability, MDPI, vol. 12(11), pages 1-16, May.
    14. Ta Nhat Linh & Hoang Thanh Long & Le Van Chi & Le Thanh Tam & Philippe Lebailly, 2019. "Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    15. Yusuf Ibrahim Kofarmata & Abubakar Hamid Danlami, 2021. "A micro-level analysis of the intensity of agricultural finance supply in Nigeria: empirical evidence," SN Business & Economics, Springer, vol. 1(1), pages 1-17, January.
    16. Thi Thu Tra Pham & Robert Lensink, 2007. "Lending policies of informal, formal and semiformal lenders," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(2), pages 181-209, April.
    17. Akudugu, M. A., 2012. "Estimation of the Determinants of Credit Demand by Farmers and Supply by Rural Banks in Ghana’s Upper East Region," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 2(02), pages 1-13, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jakob Skoet & Kostas Stamoulis & Annelies Deuss, 2004. "Investing in Agriculture for Growth and Food Security in the ACP countries," Working Papers 04-22, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Justin Lin & Peilin Liu, 2006. "Economic Development Strategy, Openness and Rural Poverty: A Framework and China's Experiences," WIDER Working Paper Series RP2006-43, World Institute for Development Economic Research (UNU-WIDER).
    3. Una Okonkwo Osili & Anna L. Paulson, 2006. "What can we learn about financial access from U.S. immigrants?," Working Paper Series WP-06-25, Federal Reserve Bank of Chicago.
    4. Antonio Ciccone & Marek Jarociński, 2010. "Determinants of Economic Growth: Will Data Tell?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 222-246, October.
    5. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    6. Amanda Ellis & Claire Manuel & C. Mark Blackden, 2005. "Gender and Economic Growth in Uganda : Unleashing the Power of Women," World Bank Publications - Books, The World Bank Group, number 7388.
    7. Francis Teal, 2006. "Consumption and welfare in Ghana in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1252-1269.
    8. Katarina Keller & Panu Poutvaara & Andreas Wagener, 2009. "Does Military Draft Discourage Enrollment in Higher Education? Evidence from OECD Countries," CESifo Working Paper Series 2838, CESifo.
    9. Ehmke, Mariah & Lusk, Jayson & Tyner, Wallace, 2010. "Multidimensional tests for economic behavior differences across cultures," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 37-45, January.
    10. Faria, Andr & Mauro, Paolo, 2009. "Institutions and the external capital structure of countries," Journal of International Money and Finance, Elsevier, vol. 28(3), pages 367-391, April.
    11. Akay, Alpaslan & Martinsson, Peter, 2011. "Does relative income matter for the very poor? Evidence from rural Ethiopia," Economics Letters, Elsevier, vol. 110(3), pages 213-215, March.
    12. Carré, Sylvain & Cohen, Daniel & Villemot, Sébastien, 2019. "The sources of sovereign risk: a calibration based on Lévy stochastic processes," Journal of International Economics, Elsevier, vol. 118(C), pages 31-43.
    13. Rafaelita M. Aldaba & Gloria O. Pasadilla, 2010. "The ASEAN Services Sector and the Growth Rebalancing Model," Working Papers id:2922, eSocialSciences.
    14. Mohamed Dridi, 2014. "Corruption and Education: Empirical Evidence," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 476-493.
    15. David Lawson & David Hulme & James Muwonge, 2007. "Methodological Issues Associated with Combining Quantitative and Qualitative Approaches to Understanding Poverty Dynamics: Evidence from Uganda," Economics Series Working Papers GPRG-WPS-077, University of Oxford, Department of Economics.
    16. Sadhana Srivastava, 2006. "The Role Of Foreign Direct Investment In India'S Services Exports: An Empirical Investigation," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 51(02), pages 175-194.
    17. Robert K. Fleck & Christopher Kilby, 2006. "World Bank Independence: A Model and Statistical Analysis of US Influence," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 224-240, May.
    18. HEPP, Ralf, 2010. "CONSEQUENCES OF DEBT RELIEF INITIATIVES IN THE 1990s," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(1).
    19. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," The World Bank Research Observer, World Bank, vol. 21(2), pages 241-265.
    20. repec:ilo:ilowps:376750 is not listed on IDEAS
    21. Yoruk, Baris, 2007. "Human Capital, Innovation, and Productivity Growth: Tales from Latin America and Caribbean," MPRA Paper 3667, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:sajeco:v:73:y:2005:i:3:p:482-497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.