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Credit Labour Interlinkage Revisited

Author

Listed:
  • Banerjee (Chatterjee), Tanmoyee

    (Department of Economics, Jadavpur Universit, Kolkata, India)

  • Roy, Malabika

    (Department of Economics, Jadavpur Universit, Kolkata, India)

  • Ghosh, Chandralekha

    (Department of Economics, West Bengal State University, India)

Abstract

The present paper examines the incidence of credit labour interlinkage under the assumption that the households that take interlinked credit use it as working capital in agriculture. First a theoretical model is developed. Next the theoretical model is empirically validated on the basis of a primary survey conducted in two villages located in the district of North 24 Parganas, of West Bengal in India. Results show that agricultural land holding status of the borrower positively and significantly influences the probability of interlinked loans and sizes of interlinked loans are influenced by the land holding size of the labourers who are taking such loans.

Suggested Citation

  • Banerjee (Chatterjee), Tanmoyee & Roy, Malabika & Ghosh, Chandralekha, 2015. "Credit Labour Interlinkage Revisited," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 50(1), pages 131-167.
    • Handle: RePEc:dse:indecr:0099
    as

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    More about this item

    Keywords

    Credit Contracts; Informal Sources; Working Capital Loans; Credit Labour Interlinked Contract;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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