Household-Level Credit Constraints in Urban Ethiopia

There is a dearth of empirical evidence on the determinants of household credit constraints in Sub-Saharan Africa. Most studies have disproportionally focused either on household credit constraints in rural areas or credit constraints facing firms. There are also a number analytical problems linked with identifying credit constrained households. Using the Fourth Round Ethiopian Urban Household Survey conducted in 2000 which provides a unique set of variables in relation to access to credit, we extended the approach of Jappelli (1990) to identify credit constrained households directly. We find a high percentage of credit-constrained households. After controlling for potential endogeneity and selectivity bias, our econometric models showed that current household resources, number of dependants and location are significant correlates of credit constraints. Further, we discuss the policy implications of our findings.


Editor(s):
Tadele Ferede
Abu Girma
Getnet Alemu
Demirew Getachew (
Issue Date:
Sep 03 2012
Publication Type:
Journal Article
ISSN:
1993-3681
Language:
English
Published in:
Ethiopian Journal of Economics, Volume 20, Number 1
Page range:
1-24
JEL Codes:
D12; O12; O55
Note:
Abbi M. Kedir, And Gamal Ibrahim_ Household-Level Credit Constraints in Urban Ethiopia




 Record created 2017-07-10, last modified 2017-08-29

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