Gine, Xavier and Klonner, Stefan (2005) Credit constraints as a barrier to technology adoption by the poor: Lessons from South-Indian small-scale fishery. World Bank Policy Research Working Paper No.3665 . World Bank.
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This paper studies the diffusion of a capital intensive, indivisible technology and analyzes the dynamics of income inequality during this process. We find evidence that credit constraints are the key factor that explains the pattern of delayed adoption observed in the data. During the diffusion process, inequality follows Kuznets' well-known inverted U-shaped curve. Consistent with the model and results, a redistributive policy favoring the poor results in accelerated economic growth and a shorter duration of sharpened inequality, although the quantitative impact of such a policy is small. One advantage of this paper over other studies about the impacts of globalization, is that context is well understood. Thus, the specific channel in which wealth matters for adoption can be disentangled. We conclude, that overall our village in Tamil Nadu experienced a success story of globalization according to the simulated data, the diffusion for the entire sample is completed in less than five years and it results in substantial income gains for everyone.
| Item Type: | Documents |
|---|---|
| Class Number: | 500.CRE005 |
| Keywords: | India, Small-scale Fisheries, WB, Research and Development, Fishing Boats, Mechanisation, Kerala, Tamil Nadu, Income, Loans, Technology, Credit |
| Subjects: | Right to Resources |
| Depositing User: | Chitti Babu ICSF |
| Date Deposited: | 17 Feb 2022 05:57 |
| Last Modified: | 17 Feb 2022 05:57 |
| URI: | http://icsfarchives.net/id/eprint/9174 |
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