Credit, Intermediation and Poverty Reduction

Robert M. Townsend
Publication Type: 
Books and Book Chapters
Book Title: 
Understanding Poverty
Book Editor: 
Abhijit Banerjee, Roland Bénabou,and Dilip Mookherje
City of Publication: 
New York
Publisher: 
Oxford University Press
Pages: 
357-364
Publication Year: 
2006

The purpose of this essay is to show how credit markets influence development and to argue that the impact of improvements in credit markets is quantitatively significant. The essay first establishes the fact that access to credit is limited, emphasizing the magnitudes. It then goes on to the potential importance of financial sector development, again quantifying the impact. Toward the end of the essay there is a discussion of the merits of different interventions.

Region: 
East Asia and the Pacific
Country: 
Thailand