The book explores the problem of credit market segmentation, a widespread phenomenon in developing countries, within a theoretical framework based on graphical analysis. It investigates the causes and effects of this problem, and the impact of possible solutions. Credit market segmentation is an outgrowth of information-related problems and high transaction costs in lending. It leads to segmentation in labour markets and also results in inefficient factor allocation and highly skewed income distribution patterns. A theoretical impact analysis shows that microcredit programmes can eliminate the causes and effects of credit market segmentation and that their impact is much broader than is usually assumed. This book should be required reading for everyone who is interested in microcredit.

Autorentext

The Author: Ingo Tschach studied economics at the University of Göttingen and at UCLA. He did his graduate work at the University of Frankfurt. While completing his dissertation, he also carried out consulting missions for Internationale Projekt Consult (IPC). In 1999 he was named Assistant Professor at the University of Frankfurt. In addition to his teaching and research work, the author serves as a freelance consultant in the field of development finance. To date, he has executed assignments for IPC (Frankfurt), AHT International (Essen), and Kreditanstalt für Wiederaufbau (Frankfurt).

Inhalt

Contents : The Theoretical Derivation of Credit Market Segmentation - The Impacts of Credit Market Segmentation - Approaches Taken by Successful Small Loan Programmes - Impact Analysis of Small Loan Programmes: How They Affect Financial Markets, Labour Markets, Factor Allocation, Income Distribution and Growth.