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The impact of formal finance on the rural economy of India

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  • Hans Binswanger
  • Shahidur Khandker

Abstract

India's supply‐led approach to agricultural credit paid off in non‐farm growth, employment and rural wages. The impact of expanded credit on agricultural output has been modest, and the benefits of agricultural income exceed the costs of the programme only if optimistic assumptions are made about repayment rates on farm credit.

Suggested Citation

  • Hans Binswanger & Shahidur Khandker, 1995. "The impact of formal finance on the rural economy of India," Journal of Development Studies, Taylor & Francis Journals, vol. 32(2), pages 234-262.
    • Handle: RePEc:taf:jdevst:v:32:y:1995:i:2:p:234-262
    DOI: 10.1080/00220389508422413
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    1. N. Jayaram & Surendra K. Gupta & A.P. Barnabas & Sachchidananda & P.S. Pachauri & M.L. Khattar & B.N. Sampath & H. R. Khanna, 1985. "India," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 177-179, January.
    2. Khandker, Shahidur R., 1989. "Improving rural wages in India," Policy Research Working Paper Series 276, The World Bank.
    3. Braverman, Avishay & Guasch, J. Luis, 1989. "Rural credit in developing countries," Policy Research Working Paper Series 219, The World Bank.
    4. Haggblade, Steven & Hazell, Peter, 1989. "Agricultural technology and farm-nonfarm growth linkages," Agricultural Economics, Blackwell, vol. 3(4), pages 345-364, December.
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