CREDIT IN TURKISH AGRICULTURE: ITS QUANTITY, DISTRIBUTION AND TRIPLE BIAS

Date

1992

Author

Mutlu, Servet

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The institutional crédit in agriculture has been inadequate in relation to the farmers' needs. It also had a size distribution bias, a term structure bias and a regional bias. Its size distribution discriminated against small farmers which led them to resort to non-institutional credit sources with high interest rates. The term structure bias in favour of short term loans, together with fluctuations in the quantity of real credits, constrained farmers in making investments which required a longer time horizon. The negative interest rates, during the 1970s and 1980s, in combination with low repayment rates, implicitly subsidized agriculture, in particular, the large operators.The credit squeeze under stabilization programs, disproportionately fell on agriculture.

URI

https://hdl.handle.net/11511/110575

Collections

Department of Economics, Article