What's Wrong with Romanian Rural Finance? Understanding the Determinants of Private Farmers' Access to Credit

Centre for Economic Reform and Transformation, Heriot-Watt University Discussion Paper No. 98/08

44 Pages Posted: 23 Jan 1999

See all articles by Junior R. Davis

Junior R. Davis

Heriot-Watt University

Angela Gaburici

Economic Forecasting Institute, Romania

Paul G. Hare

Heriot-Watt University; CASE, Warsaw

Date Written: June 1998

Abstract

This analysis of the determinants of private farmer access to rural finance in Romania has two distinct aspects: (i) a quantitative evaluation of some measurable variables for example factors affecting the amount of loans and the volume of savings; and (ii) a qualitative aspect, concentrating on the relationship between financial service suppliers and private farmers. We also consider the motivations underlying the participation or non-participation of private farmers in the development of the rural financial market. We have estimated two regression models: a) to determine the main characteristics of the private farms that have access to formal credit; and b) to estimate how farm income, the source and utilization of credit each impact on the actual loan amounts obtained. The paper attempts at all times to reflect the problems that farmers have highlighted in gaining access to rural finance in the results of our analysis.

JEL Classification: D4, Q14, R51, G20

Suggested Citation

Davis, Junior R. and Gaburici, Angela and Hare, Paul, What's Wrong with Romanian Rural Finance? Understanding the Determinants of Private Farmers' Access to Credit (June 1998). Centre for Economic Reform and Transformation, Heriot-Watt University Discussion Paper No. 98/08, Available at SSRN: https://ssrn.com/abstract=142341 or http://dx.doi.org/10.2139/ssrn.142341

Junior R. Davis (Contact Author)

Heriot-Watt University

Angela Gaburici

Economic Forecasting Institute, Romania

Bucharest
Romania

Paul Hare

Heriot-Watt University ( email )

Riccarton
Edinburgh EH14 4AS, Scotland EH14 1AS
United Kingdom
0131 451 3483 (Phone)
0131 451 3498 (Fax)

CASE, Warsaw ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

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