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Does Political Identity Matter in Rural Borrowing? Evidence from a Field Survey

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Listed:
  • Tanmoyee Banerjee

    (Department of Economics Jadavpur University, India)

  • Malabika Roy

    (Department of Economics Jadavpur University, India)

  • Chandralekha Ghosh

    (Department of Economics West Bengal State University, India)

Abstract

This study is based on a primary survey conducted over two consecutive years in two villages in the North 24 Parganas district of West Bengal, India. West Bengal has the unique feature of being under a single coalition government for the last 30 years. In this context, we examine the effect of different socioeconomic, political and demographic borrower characteristics on the probability of taking a loan from formal sources and the size of such loans taken. We find that political identity significantly affects the borrowers’ access to the formal loan market. Other factors that are significant in characterising the formal borrowers are occupational categories, landholding and religious status.

Suggested Citation

  • Tanmoyee Banerjee & Malabika Roy & Chandralekha Ghosh, 2010. "Does Political Identity Matter in Rural Borrowing? Evidence from a Field Survey," Journal of South Asian Development, , vol. 5(1), pages 137-163, April.
    • Handle: RePEc:sae:soudev:v:5:y:2010:i:1:p:137-163
    DOI: 10.1177/097317411000500106
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    References listed on IDEAS

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    2. Pranab Bardhan & Sandip Mitra & Dilip Mookherjee & Abhirup Sarkar, 2008. "POLITICAL PARTICIPATION, CLIENTELISM AND TARGETING OF LOCAL GOVERNMENT PROGRAMS: Analysis of Survey Results from Rural West Bengal, India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-171, Boston University - Department of Economics.
    3. Ahlin, Christian & Townsend, Robert M., 2007. "Selection into and across credit contracts: Theory and field research," Journal of Econometrics, Elsevier, vol. 136(2), pages 665-698, February.
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    5. Mikkel Barslund & Finn Tarp, 2008. "Formal and Informal Rural Credit in Four Provinces of Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 485-503, April.
    6. Thi Thu Tra Pham & Robert Lensink, 2007. "Lending policies of informal, formal and semiformal lenders: evidence from Vietnam," ULB Institutional Repository 2013/14285, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Tanmoyee Banerjee-Chatterjee & Malabika Roy & Ajitava Raychaudhuri, 2021. "Financial Inclusiveness and Mobilization of Household Savings in Rural Area: Are They Related?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 223-249, June.

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