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The impact of formal finance on the rural economy of India
Authors:
Hans P. Binswanger a;
Shahidur R. Khandker b
| Affiliations: | a Senior Policy Advisor in the Agricultural and Natural Resources Department, World Bank, |
| b Economist in the Poverty and Social Policy Department, World Bank, |
DOI:
10.1080/00220389508422413
Publication Frequency:
10 issues per year
Formats available:
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(English)
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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.
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