The Analysis of Peasant Household's Credit Behavior

AbstractPeasant household's credit behavior not only affect the financial ability of the peasant household, but also influence the credit decisions of the rural financial institution, consequently impact on the development of the Chinese rural economic and the peasant household economic. This paper, based on the credit behavior of peasant household in the process of the Chinese rural economic development11Peasant household's credit behavior is the credit behavior under the comprehensive influence of the repayment capacity and willingness, in which repayment capacity is the key element., analysis the credit behavior game in rural credit and loan process between peasant households and rural financial institution, and the game among peasant households in rural joint warrant process. Finally, provides methods to improve the credit behavior of peasant household in credit game

Class position and Economic Behavior in a Tunisian Village: Selective Separability in a Multi-Factor Household Model

The purposes of this paper are twofold. First, we examine, using a unique dataset collected in the Tunisian village of El Oulja, what might be termed "all or nothing" separability (Benjamin, 1992) by testing, while controling for plot characteristics (Udry, 1996), the proposition that farm input use is independent of household characteristics. Second, we test for separability in the context of a model of class structure based on the seminal work of Eswaran and Kotwal (1986). In order to do so, we construct a model of class structure which offers an appealing representation of the typology of household types in the village when they are classified in terms of (i) their hiring in of wage labor, and (ii) their hiring out of family labor. We use a two-stage estimation technique in which we first estimate the probability of class membership as a function of household characteristics using discrete choice methods. In the second stage we estimate labor intensity per hectare using a Lee-Heckman procedure in which the inverse-Mill ratio from the first stage is included as an additional explanatory variable. As with the case of the test for "all or nothing" separability, the test for selective separability involves exclusion restrictions on household characteristics, although these are now conditional on class membership. Our empirical results strongly support the selective separability hypothesis as well as our theoretical model: most of the "action" in terms of non-separability stems, as one would expect from the model, from the class of "self-cultivators" who neither hire in wage labor nor hire out family labor. Our paper extends the work of DeJanvry, Sadoulet and Benjamin (1996) on Mexican ejidatarios to plot- as opposed to household-level estimation. Moreover, our paper provides an elaboration on and an empirical bridge to theoretical models, such as Roemer (1982), Eswaran and Kotwal (1986), and Carter and Zimmerman (1995) which examine how credit constraints and imperfections on factor markets shape the class structure of the agrarian economy. The implications and scope for government intervention in the context of market imperfections are also examined.class structure, selective separability, Household models

Child Labor and Household Wealth : Theory and Empirical Evidence of an Inverted-U

Some studies on child labor have shown that, at the level of the household, greater land wealth leads to higher child labor, thereby casting doubt on the hypothesis that child labor is caused by poverty. This paper argues that the missing ingredient may be an explicit modeling of the labor market. We develop a simple model which suggests the possibility of an inverted-U relationship between land holdings and child labor. Using a unique data set that has child labor hours it is found that, controlling for child, household and village characteristics, the turning point beyond which more land leads to a decline in child labor occurs around 4 acres of land per household.child labor ; land-holding ; labor markets

Is the emerging nonfarm market economy the route out of poverty in Vietnam?

Are the household characteristics that are good for transition to a more diversified market-oriented development process in Vietnam also important for reducing poverty? Or are there tradeoffs? The determinants of both poverty incidence and participation in rural off-farm activities are modeled as functions of household and community characteristics using comprehensive national household surveys for 1993 and 1998. Despite some common causative factors, such as education and region of residence, the processes determining poverty and inhibiting diversification are clearly not the same. Participation in the emerging rural nonfarm market economy will be the route out of poverty for some, but certainly not all, of Vietnam's poor.Health Economics&Finance,Environmental Economics&Policies,Public Health Promotion,Labor Policies,Health Monitoring&Evaluation,Environmental Economics&Policies,Health Economics&Finance,Poverty Assessment,Governance Indicators,Achieving Shared Growth

The Role of Land Certification in Reducing Gender Gaps in Productivity in Rural Ethiopia

The importance of providing secure land rights to smallholder farmers in developing countries is now widely recognized. In line with this, our paper analyzes the impact of land certification on boosting productivity of female-headed households in Ethiopia, which are believed to be systematically more tenure insecure than their male counterparts. Based on parametric and semi-parametric analyses, the impact of certification on plot-level productivity is positive and significant. However, certification has different impacts on male and female productivity: male-headed households gain significantly and women gain only modestly. Hence, the results indicate that, while certification is clearly beneficial to farm-level productivity, it does not necessarily lead to more gains for female-headed households.productivity, female-headed households, land certification

Formal and Informal Credit Markets and Rural Credit Demand in China

Credit markets are an essential economic institution. In developing countries, particularly in countries undergoing rapid social and economic transition, it is important to identify emerging credit demand and institute credit supply in a timely manner to facilitate economic transformation. This research focuses on the evolving rural credit market in China, where borrowing from the social network has been common but the recent economic transition has made this informal credit market inadequate in addressing rural credit needs. This research is aimed at identifying the social and economic factors that explain the farmers’ credit constraint and influence farmers’ decisions to switch from informal to formal credit markets. Using data from a household survey, we estimated both binary choice probit models and a multinomial probit model to explore the determinants of credit market choice and credit constraints. We found that the credit demand is significantly affected by household’s production capacity as supported by the fact that household size, land size, head’s education all significantly increase household’s probability to borrow, but the impact of these factors varies considerably by credit market. Transaction costs have a significant, negative effect on formal credit demand. The credit constraints analysis suggest that off-farm employment, land size and the cost of the credit are the three most important factors that increase the probability of being constrained.Formal Credit, Informal Credit, Credit Markets, Rural Credit, China, Agricultural Finance, Farm Management,

Population and Sustainability: Understanding Population, Environment, and Development Linkages

The triple challenge of rapid population growth, declining agricultural productivity, and natural resource degradation are not isolated from one another; they are intimately related. However, strategic planning and development programming tend to focus on individual sectors such as the environment, agriculture, and population; they do not explicitly take into account the compatibilities and inconsistencies among them. Farm households and their livelihood strategies are at the core of the intersectoral linkages approach advocated in this chapter. Three key aspects of the population-environment-development debate are discussed: first, the finding that inconsistencies between public and individual household behavior regarding childbearing and family planning constitute a veritable "demographic tragedy of the commons;" second, the tendency to conceptualize population variables as "unmanageable," and exogenous to environmental and economic change; third, the importance of land markets and land tenure as critical population-sustainability policy issues.Africa, agriculture, Rwanda, population, sustainability, environment, food security, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Environmental Economics and Policy, Food Security and Poverty, International Development, Q56,

The collective model of the household and an unexpected implication for child labor : hypothesis and an empirical test

The authors use the collective model of the household and show, theoretically, that as the woman's power rises, child labor will initially fall,but beyond a point it will tend to rise again. A household with a balanced power structure between the husband and the wife is least likely to send its children to work. An empirical test of this relationship using data from Nepal strongly corroborates the theoretical hypothesis.Street Children,Labor Policies,Environmental Economics&Policies,Children and Youth,Labor Standards,Street Children,Children and Youth,Youth and Governance,Environmental Economics&Policies,Health Economics&Finance

Do Limitations in Land Rights Transferability Influence Low Mobility Rates in Ethiopia?

Migration is considered a pathway out of poverty for many rural households in developing countries. National policies can discourage households from exploiting external employment opportunities through the distortion of capital markets. Studies in China show that the presence of state and collectively owned land creates inefficiencies in the labor market. We examine the extent restrictions on land rights impede mobility in Ethiopia, having the lowest urbanization rate in sub-Saharan Africa. The empirical estimates support a robust positive effect from increasing the transferability of land rights on migration. Our findings are suggestive that the nascent land certification and registration programs in regions of Ethiopia may potentially promote poverty reduction by increasing incentives to migrate.International Development, Labor and Human Capital, Land Economics/Use,