I Fiance Apicultural

Table 48- Continued
103
eBased on the authors' estimation of the single-equation univariate linear model, using
the institutional data on rural bank deposits given in Lee and Kim 1976.
'Based on multivariate single-equation linear models. The study uses time-series data
from 292 farmers' associations at the provincial level. The (epen(lent variables are
demand deposits, term deposits, and both jf these together.
gBased on tnultivariate single-equation linear models for all households. The study uses
semi-annual observations for 1952-62. )ependent variables are time and savings deposits
at commercial banks, savings deposits with other financial institutions, and claims on
insurance companies.
hBascd on a multivariate, reduced form of linear model for the farm sector. The study
uses time-series data for 1948-70. The dependent variables are demand deposits and time
and savings deposits of the farmn sector.
these studies considers the effects of the real rate of rettrn ol other
forms of financial savings, or on physical forms of savings, the inportance
of whichi may differ greatly in the countries covered. And foturth,
these studies do not define what is rural. lhtts, it is clear fiot the
rtetaining six econometric studies that raising le interest rate on
deposits by I perccntage point increases fatrn deposits only modestly in
HICs and hardly at all in MICs and LICs.
Irom the prece(ling discussion, it lay be Cotluded that a policy of
raising interest rates otn fanters' deposits catnot be the kingpin for
mobilizing these deposits dtring the development process. Futtt'e policy
for developing couintries should concentrate on intprovitlg acccssibility,
liquidity, safety, and nondeposit services such as credit, input sales,
and the character of deposit facilities of the RFIs. In operational terms,
this implies increasing the number of field-level rtt-al offices; making it
possible to deposit for a shorter period of time, fi-om a few weeks up to
six tnionths, with commenstirate intercst rates; protecting deposit facilities
fiton theft and itistise; and improving credit and inpttt-linkc"
deposit iinstrttments.