The Impact of Rural Credit on Production and Income Distribution

摘要

Many LDCs have used rural credit as an incentive to promote investments in their agricultural sectors. Using examples from Brazil, this paper analyzes the effectiveness of these policies and their impact on income distribution. First, the institutional and economic environment of Brazil is outlined and then a model is presented through which rural credit is analyzed. Next, the impact of these credit programs on income distribution is discussed. Empirical evidence and a summary of results conclude this report.