Borrower Transactions Costs and Credit Rationing in Rural Financial Markets: The Philippine Case

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 they are deregulated? These are the issues that the paper hopes to provide answers to.financial market, rural credit, financial sector, rural sector, borrowing behavior, borrower, transaction costs