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Tabie 41-Evidence on interest elasticity of demand for rural loans in selected developing and developed<br />

countries<br />

Type of Demand, Region,<br />

Country, Income Group,<br />

Study Period, Source<br />

Institutional loans<br />

Sub-Saharan Africa<br />

Low-income country<br />

Kenya, 1977-83 (Paulson 1984)<br />

Simple average<br />

Asia<br />

Low-income countries<br />

Bangldesh, 1962/63<br />

(Adams 1979)<br />

India, 1967/68 (T)agi and Pandey<br />

1982)<br />

India, mid-1970s (Kumar,Joshi,<br />

and Murlidharan 1978)<br />

India, 197S/79 (Tyagi and Pandey<br />

1982)<br />

India, 1986/87 (Agricultural<br />

Finance Corporation 1988)<br />

India, commercial banks, 1986/87<br />

(Agricultural Finance Corporation<br />

1988)<br />

More than<br />

-0.70<br />

...<br />

...<br />

b<br />

-1.98<br />

...<br />

-1.64 to -4.52 c<br />

Medium-size,<br />

mechanized<br />

farms<br />

0.9 0 d<br />

-1.37d<br />

-0.39 to<br />

-0.70<br />

-0.39 to -0. 4 6 a<br />

-0.39 to -0.46<br />

...<br />

...<br />

...<br />

-0.50 to -0.69 c<br />

Large-size,<br />

partially<br />

mec!banized<br />

farms<br />

-<br />

Range of Interest Elasticity<br />

-0.21 to -0.10 to<br />

-0.38 -0.20<br />

.........<br />

...<br />

......<br />

... ...<br />

...<br />

-0.25 to 0.35 c<br />

-0.24 to -0.25 c<br />

Bullockoperated<br />

farms<br />

...<br />

......<br />

...<br />

..<br />

Less than<br />

-0.10<br />

...<br />

-0.006 to -0.029c<br />

...<br />

Overall<br />

Average<br />

4).43a<br />

-0.43<br />

.b<br />

-1.98<br />

-0.C2 c<br />

-0.30c<br />

-1.31c<br />

90d<br />

(continued)<br />

.

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