IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v55y2019i8p1816-1833.html
   My bibliography  Save this article

Caste and Credit: A Woeful Tale?

Author

Listed:
  • Sunil Mitra Kumar
  • Ragupathy Venkatachalam

Abstract

This paper examines caste-based differences in farmers’ access to bank loans in rural India. We investigate whether banks practice taste-based discrimination on the basis of caste. In order to identify potential discrimination, we consider loan applications and approval decisions separately. We find significant inter-caste differences in application rates, and evidence of discrimination against Scheduled Tribe borrowers at the approval stage. To rule out the role of statistical discrimination, we simulate unobserved credit histories with various distributions. Evidence for taste-based discrimination persists despite accounting for unobservables. However, we find that this discrimination does not affect small farmers.

Suggested Citation

  • Sunil Mitra Kumar & Ragupathy Venkatachalam, 2019. "Caste and Credit: A Woeful Tale?," Journal of Development Studies, Taylor & Francis Journals, vol. 55(8), pages 1816-1833, August.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:8:p:1816-1833
    DOI: 10.1080/00220388.2018.1425397
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220388.2018.1425397
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220388.2018.1425397?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Sandhya Garg & Samarth Gupta & Sushanta Mallick, 2023. "Does Social Identity Constrain Rural Entrepreneurship? The Role of Financial Inclusion," IEG Working Papers 460, Institute of Economic Growth.
    2. Christophe J. Nordman & Smriti Sharma & Naveen Sunder, 2022. "Here Comes the Rain Again: Productivity Shocks, Educational Investments, and Child Work," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1041-1063.
    3. Barooah, Prapti & Alvi, Muzna & Ringler, Claudia & Pathak, Vishal, 2023. "Gender, agriculture policies, and climate-smart agriculture in India," Agricultural Systems, Elsevier, vol. 212(C).
    4. Saha, Roshan & Taylor, Mykel R. & Hartarska, Valentina M., 2024. "Caste dominance in rural credit markets: Evidence from India," 2024 Annual Meeting, July 28-30, New Orleans, LA 343873, Agricultural and Applied Economics Association.
    5. Varshney, Deepak & Mishra, Ashok K. & Joshi, Pramod K. & Roy, Devesh, 2022. "Social networks, heterogeneity, and adoption of technologies: Evidence from India," Food Policy, Elsevier, vol. 112(C).
    6. Suresh Govindapuram & Samyukta Bhupatiraju & Rahul A. Sirohi, 2023. "Determinants of women's financial inclusion: Evidence from India," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 131-158, March.

    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:taf:jdevst:v:55:y:2019:i:8:p:1816-1833. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    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.