Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia
What is the optimal size and composition of rural financial cooperatives (RFCs)? With this broad question in mind, we characterize alternative formations of RFCs and the implications of each in improving the access of rural households to financial services, including savings, credit, and insurance s...
| Autores principales: | , , , |
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| Formato: | Brief |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2017
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/148342 |
| _version_ | 1855540794543308800 |
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| author | Abay, Kibrom A. Koru, Bethlehem Abate, Gashaw T. Berhane, Guush |
| author_browse | Abate, Gashaw T. Abay, Kibrom A. Berhane, Guush Koru, Bethlehem |
| author_facet | Abay, Kibrom A. Koru, Bethlehem Abate, Gashaw T. Berhane, Guush |
| author_sort | Abay, Kibrom A. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | What is the optimal size and composition of rural financial cooperatives (RFCs)? With this broad question in mind, we characterize alternative formations of RFCs and the implications of each in improving the access of rural households to financial services, including savings, credit, and insurance services. We find that some features of RFCs have varying implications for delivering various financial services. The size of RFCs is found to have a nonlinear relationship with the various financial services RFCs provide. We also show that compositional heterogeneity among members, including diversity in wealth, is associated with higher access to credit services, while this has limited effects on the savings behavior of members. Similarly, social cohesion among members is strongly associated with higher access to financial services. These empirical descriptions suggest that the optimal size and composition of RFCs may vary across the different domains of financial services that they are designed to facilitate. This evidence provides suggestive insights on how to ensure financial inclusion among smallholders, a priority among agricultural sector policy makers in developing countries, including Ethiopia. The results also provide some insights for the design of rural microfinance operations as they seek to satisfy members’ demand for various financial services. |
| format | Brief |
| id | CGSpace148342 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1483422025-11-06T07:15:20Z Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia Abay, Kibrom A. Koru, Bethlehem Abate, Gashaw T. Berhane, Guush rural communities production economic growth economic development livestock production households grain crops smallholders marketing market access livelihoods livestock What is the optimal size and composition of rural financial cooperatives (RFCs)? With this broad question in mind, we characterize alternative formations of RFCs and the implications of each in improving the access of rural households to financial services, including savings, credit, and insurance services. We find that some features of RFCs have varying implications for delivering various financial services. The size of RFCs is found to have a nonlinear relationship with the various financial services RFCs provide. We also show that compositional heterogeneity among members, including diversity in wealth, is associated with higher access to credit services, while this has limited effects on the savings behavior of members. Similarly, social cohesion among members is strongly associated with higher access to financial services. These empirical descriptions suggest that the optimal size and composition of RFCs may vary across the different domains of financial services that they are designed to facilitate. This evidence provides suggestive insights on how to ensure financial inclusion among smallholders, a priority among agricultural sector policy makers in developing countries, including Ethiopia. The results also provide some insights for the design of rural microfinance operations as they seek to satisfy members’ demand for various financial services. 2017 2024-06-21T09:24:25Z 2024-06-21T09:24:25Z Brief https://hdl.handle.net/10568/148342 en https://hdl.handle.net/10568/147768 https://doi.org/10.1111/apce.12212 application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Abay, Kibrom A.; Koru, Bethlehem; Abate, Gashaw T.; and Berhane, Guush. 2017. Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia. ESSP II Research Note 66. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/148342 |
| spellingShingle | rural communities production economic growth economic development livestock production households grain crops smallholders marketing market access livelihoods livestock Abay, Kibrom A. Koru, Bethlehem Abate, Gashaw T. Berhane, Guush Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title | Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title_full | Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title_fullStr | Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title_full_unstemmed | Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title_short | Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia |
| title_sort | synopsis how should rural financial cooperatives be best organized evidence from ethiopia |
| topic | rural communities production economic growth economic development livestock production households grain crops smallholders marketing market access livelihoods livestock |
| url | https://hdl.handle.net/10568/148342 |
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