Capital market access, factor demand, and agricultural development in rural areas of developing countries: the case of Uganda
1999
K. Deininger | J. Okidi
An econometric assessment using data from a 1992 survey of 10,000 Ugandan households. The paper focuses on input allocation and investment with and without credit constraints.Concludes that micro-level evidence from the rural sector of a developing country indicates that development of local financial markets improves efficiency of (purchased) input use in agriculture and promotes diversification and non-agricultural investment. Creation of a policy and regulatory environment for private financial intermediaries to function, is important not only for Uganda but for other governments concerned about rural development.[adapted from author]
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