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dc.creatorKhalily, M. A. Baquien_US
dc.creatorMeyer, Richard L.en_US
dc.description.abstractThe rural loan recovery problem in developing countries is frequently analyzed from borrowers and institutional perspectives. But a frequently overlooked problem is that borrowers often are discouraged to repay or institutions are not aggressive enough to recover loans because of political interventions of the government into rural financial markets to derive the benefits of getting re-elected. Failure to address this dimension in recovery analysis may lead to an incorrect prescription of policies. This paper provides an empirical analysis of how political interventions affect rural loan recovery in Bangladesh. The government in Bangladesh intervenes into rural loan allocation and recovery indirectly through financial policies - interest exemption, loan targeting, interest rates - and directly through local political leaders and government officials. The intensity of direct intervention is expected to increase during an election period. Four variables - inflation rate, election years, interest exemption years, and bank type - were included in the model. The empirical results showed that election, inflation rate, and bank type affect the loan recovery negatively, and interest exemption positively.en_US
dc.format.extentPages: 15en_US
dc.publisherOhio State University. Department of Agricultural, Environmental, and Development Economicsen_US
dc.relation.ispartofseriesOhio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 1773en_US
dc.rightsThis item may be protected by copyright, and is made available here for research and educational purposes. The user is responsible for making a final determination of copyright status. If copyright protection applies, permission must be obtained from the copyright holder to reuse, publish, or reproduce the object beyond the bounds of Fair Use or other exemptions to the law.en_US
dc.titlePolitical Economy and Rural Loan Recovery: An Example for Bangladeshen_US
dc.type.genreWorking Paperen_US

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