Does the Caste of the Firm Owner Play a Role in Access to Finance for Small Enterprises? Evidence from India

Autor:	S N Rajesh Raj, Subash Sasidharan
Rok vydání:	2018
Předmět:	Economics and Econometrics Labour economics Affirmative action 05 social sciences Caste Development Disadvantaged Incentive Loan 0502 economics and business Bond market Access to finance Small and medium-sized enterprises Business 050207 economics 050203 business & management
Zdroj:	The Developing Economies. 56:267-296
ISSN:	0012-1533
DOI:	10.1111/deve.12183
Popis:	This study examines whether caste affiliation influences the ability to obtain credit from institutional sources. We employ Fourth All India Census of Micro, Small and Medium Enterprises 2006–2007 data to empirically verify this relationship. We conduct an econometric analysis of loan outcomes by the caste affiliation of the firm owner and observe that firms owned by socially disadvantaged groups have a lower probability of obtaining formal credit even after controlling for differences in creditworthiness and other factors. Our results also show that discrimination by formal credit institutions extends to the amount of the loan sanctioned. These results thus suggest that affirmative action programs in India have not had much impact on credit market access for socially marginalized entrepreneurs, and policymakers should address this concern by introducing special programs and regulatory incentives to encourage banks and others to increase their lending toward these disadvantaged groups.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::edb690022f6abe6b61a04f55bb69c601 https://doi.org/10.1111/deve.12183 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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