Social and Behavioral Sciences Commons^™

Determinants Of Access To Credit And Loan Amount: Household-Level Evidence From Urban Ethiopia, Abi Kedir

International Conference on African Development Archives

Household level analysis of credit rationing is restricted to rural data sets collected mainly from South East Asia. In Africa, credit constraints are often investigated using firm level data. Empirical evidence on determinants of credit constraints and amount borrowed by urban households is almost non-existent from Sub-Saharan Africa. Using an extended direct approach, we analyzed the Fourth Round Ethiopian Urban Household Survey (2000) to separate households that do not have access to credit from those who do. We find a high percentage (i.e. 26.6%) of credit-constrained households, the majority of which constitute discouraged borrowers. A probit model and a tobit …