The Credit Constraints of Market-Oriented Farmers in Chile |
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| Authors: | Alvaro Reyes Robert Lensink |
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| Affiliation: | 1. Faculty of Natural Resources , Universidad Santo Tomas , Santiago, Chile;2. Development Economics Group , Wageningen University , Wageningen, The Netherlands areyes@santotomas.cl;4. Department of Economics, Econometrics and Finance, Faculty of Economics and Business , University of Groningen , Groningen, The Netherlands;5. Development Economics Group , Wageningen University , Wageningen, The Netherlands |
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| Abstract: | Using data from two surveys conducted in 2006 and 2008 with 177 farmers, this article determines whether market-oriented farmers in central Chile are credit constrained, and it identifies the main factors that influence formal credit provision. In so doing, this study explicitly tests whether social capital variables play a role in determining credit constraints. That is, the authors explore the determinants of classifications into four categories of credit provision and rationing, using a panel multinomial logit model. The results suggest that most market-oriented farmers are unconstrained. Empirical evidence supports the importance of relationship variables for improving access to financial capital. |
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