Technical Change and the Structure of Informal Credit Markets in Philippine Agriculture

Abstract

The role of informal credit markets in the promotion of new technology has become significant given the shortcomings of the formal credit sector. This paper examines the impact of technical change on the structure of informal credit markets in the Philippine rice and corn sectors. It also investigates how technical change has affected both the debt burden and repayment capacity of borrowers. The findings in this paper have sizeable impact on the spectrum of policy issues.