Recent literature indicates the significant role played by rural infrastructure in improving agricultural productivity in developing economies. While the availability and quality of rural infrastructure are never substitutes to efficient macroeconomic and agriculture-specific policies and the...

Recognition of a continuous improvement in the formal financial system is necessary for economic growth. Over the years, the government has been infusing cheap funds into the rural sector. Unfortunately, it overlooks a number of serious issues regarding bank’s transaction costs. This article...

Rural agents engage in interlocking market transactions to minimize costs due to underdevelopment of rural markets. This study aims to model the economic behavior of agents in a credit-output market. Results indicate the prevalence of high interest rates in developed areas. Where income is low,...

In its attempt to examine the transaction cost of banks, this study develops a method of estimating transaction cost for each bank activity. It also explains the differences and the composition cost among commercial private development and rural banks. Results in this paper is hoped to improve...

What is the magnitude of borrower transaction costs? How does it affect borrower demand for and access to credit? What are the determinants of transaction costs? Is credit rationing through transaction costs relatively more widespread and important when interest rates are restricted than when...

This paper documents the interactions among borrowers that consist a group assuming joint liability. It describes the participants of group credit, their reasons for joining the group and the conditions why members are willing to assume other people’s debt.

The shift to a market-oriented credit and financial policy was expected to spur rural financing by the private sector that would help usher growth in the agriculture and rural areas. However, the rural areas have continued to suffer from the lack of access to financial services of banks. Despite...

This study reviews the structure, performance and competitiveness of the motorcycle and parts industry under a protectionist trade regime and evaluates how it can be affected by future liberalization. In particular, it assesses the overall effectiveness of the local content program vis-à-vis...