Access to Capital in Rural Thailand: An Estimated Model of Formal vs. Informal Credit
The aim of this paper is to understand the mechanism underlying access to credit. The author focuses on two important aspects of rural credit markets in Thailand. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs obtaining external credit. The author develops and estimates a model based on limited enforcement and transaction costs that provides a unified view of those facts. The results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders.
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Bibliographic Details
| Main Author: |
Gine, Xavier |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2005-02
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| Subjects: | ACCOUNTING,
AGRICULTURAL BANKS,
AGRICULTURE,
BORROWING,
CAPITAL REQUIREMENT,
CAPITAL REQUIREMENTS,
COLLATERAL,
COMMERCIAL BANKS,
COST OF CAPITAL,
CREDIT INSTITUTIONS,
CREDIT MARKETS,
DEBT,
DEMOGRAPHICS,
DEPOSITS,
EMPIRICAL RESEARCH,
EMPIRICAL STUDIES,
FARMS,
FINANCIAL DATA,
FINANCIAL INSTITUTIONS,
FINANCIAL INTERMEDIARIES,
FIXED ASSETS,
FIXED CAPITAL,
FIXED COSTS,
INCOME,
INFLATION,
INFLATION RATE,
INFORMATION ASYMMETRIES,
INSURANCE,
INSURANCE COMPANIES,
INTEREST PAYMENT,
INTEREST RATE,
INTEREST RATES,
LENDING INSTITUTIONS,
LIVING STANDARDS,
LOAN SIZE,
MARGINS,
MATCHING,
MATURITIES,
MATURITY,
MAXIMUM LIKELIHOOD ESTIMATION,
MONOPOLY RENTS,
OPPORTUNITY COST,
OPPORTUNITY COSTS,
PRODUCTIVE ASSETS,
PROFIT MARGINS,
PROFITABILITY,
PROXY,
RURAL COMMUNITIES,
SAVINGS,
SAVINGS DEPOSITS,
THAILAND,
TRADERS,
TRANSACTION COSTS,
WEALTH,
WORKING CAPITAL, |
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| Online Access: | http://documents.worldbank.org/curated/en/2005/02/5610659/access-capital-rural-thailand-estimated-model-formal-versus-informal-credit
https://hdl.handle.net/10986/8918
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