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Financial Restraint, Banking And Rural Development

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  • Shane, Mathew

Abstract

In this paper, arguments and evidence is presented which leads the author to conclude that the structure and imperfections of the financial markets does influence the course of economic growth. In particular, it is concluded that due to a monopoly structure in rural banking, an agricultural credit system which has helped induce a labor saving technology, and private and public flow of funds that impediments to rural development and incentives for rural out migration have been created. Although this is only one of a number of forces operating to cause the post war growth pattern, this financial structure is a key causative element and must be dealt with to initiate a successful rural development strategy.

Suggested Citation

  • Shane, Mathew, 1974. "Financial Restraint, Banking And Rural Development," Staff Papers 13701, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:13701
    DOI: 10.22004/ag.econ.13701
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    File URL: https://ageconsearch.umn.edu/record/13701/files/21331.pdf
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    References listed on IDEAS

    as
    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
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