I Fiance Apicultural

96
They also suggest that raising deposit rates rather than improving
density, accessibility, and other characteristics of RFIs should be accorded
tile highest priority in agricultural credit policy (Agabin 1987;
Mooy 1974; Republic of Philippines 1979; and I Initecd Nations Secretariat
1980).
There are, howCrr,seveI ecoionictric studies with 16 cases from
which the relative importance of various price and nouprice factors that
influenc,- sulpply of rural deposits can be identificd. These studies are on
eight diverse countrics--lBaigladclsli, India, Kenya, Nepal, Pakistan, Sri
Lanka, Taiwai, and the IhIited States. All of the studies except Penson
(1972) use the singlc-eqlation oldinaiy least squarCs technique of estimation.
Plensoti uses the two-stage least squares (2SL-S) technique to take
into account the simultaneity in the system of struictuiral equations.
Sonic of the independent variables in these studies are the same as those
in the studies on rural loaii demand: accessibility to RFls, ability to save
or"borrow, and incentives to save or borrow. Results of these stldies are
reported iniTables 11t7.
The specified models expla ina large proportion of variation in tile
su)ply cf rural deposits. Most of tile regression coefficietits associated
wilhithe real iliterest rate have the 'x)pcctdpositive sign, but only 8 out
of 15 cases have a statistically sigiificalnt cofficicit. A large lmijolrity of'
coeflicieits rel;itcdt to l rt( [;Ii(l factols have expected signs and
ale statistically significanit.
These sludies also show that hc Etctors Ielatcd to the noioiitcrest
ratc ale IIiO1C itili)llt tll ille interest iate. 32 "l'lies,.tactots, howevetr,
differ between l.lCs aid MICs, oln dt one Ianld. :uid HICs, on the other,
even though the percentage of valiatioti explained by Ihe models is the
same across these countries. itn lICs miid MICs, these are, iti ordcr of
iIIportaIice, accessibility to deposit facilities and availability of notidcposit
services such aF loans aiil marketing services, ability to save, and
interactions of these two. In I IICs, tile corres)onling factors are rate of
return (real) on comiipeting f