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Abstract

Credit is an instrument that supplies the entrepreneurs ways to play an active role in the economy. The objective of this paper is to analyze the economic impacts of the rural credit in the microregion of Pirapora, one of the seven microregions in the north of Minas Gerais State, Brazil. The impacts of rural credit regarding the total and by sector GDP per capita are measured and analyzed. In addition, the possible effects of rural credit on the Índice Mineiro de Responsabilidade Social (IMRS – Minas Gerais State Social Responsibility Index) are identified. The panel data model is used, considering the period from 2000 to 2004. Results indicate that the agricultural sector is the main beneficiary of rural credit. Since the rural credit provides liquidity in the local economy, the effects of rural credit on other sectors are observed. A possible restriction on credit access is observed, when the direct effects of rural credit on the IMRS are measured.

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