Effects of Productive Credit through Public Development Banks: Evidence from Rural Mexico

This paper presents preliminary results regarding the effectiveness of liftingcredit constraints to the rural productive sector, through credit provided bypublic development banks (PDBs), focusing on the effects of different... [ view full abstract ]

This paper presents preliminary results regarding the effectiveness of liftingcredit constraints to the rural productive sector, through credit provided bypublic development banks (PDBs), focusing on the effects of different creditprograms offered by a PDB in México to rural producers..Unlike the previousliterature, we study the effectiveness of lifting credit constraints byproviding large loans over the medium- to long-term (2 to 5 years after theintervention), and we focus exclusively on the rural productive sector. Our initialresults suggest positive effects on investment and on the financing conditionsof rural producers.