Determinants of Agricultural Credit Market Participation and Loan Repayment Performance in Finoteselam Town, Northwestern Ethiopa
maru shete bekele
Department of :Economics and Resource Management Master Thesis 30 credits 2007
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ȋ Ȍ
ǯ ȋ Ȍ
ʹͲͲ
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ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǣ
ͷǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͳ ͷǤǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ͵
ͷǤǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͻ
ǣ
Ǥͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ǤͷǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ǤͷǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ;
Ǥ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷ
ǤǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦͷ
ǤǤ ȋȌǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷ
ǣ
Ǥͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͻ ǤͷǤͷ ǯ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͻ
ǤͷǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͼ
ǤͷǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͼ
ǤͷǤͺ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷ;
ǤͷǤͺǤͷǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷ;
ǤͷǤͺǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͿ
ǤͷǤͻ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷ
ǤǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ǤǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ǣ
ͺǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ͺǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ͺǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ
ͺǤǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͺ ͺǤǤͷǤͷ ǣǦǦǦǦǦǦǦͺ ͺǤǤͷǤ ǣǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ͺǤͺǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ;
ͺǤͺǤͷ ǦǦǦǦǦǦǦǦǦǦǦǦǦ;
ͺǤͺǤ ǦǦǦǦǦǦǦǦͺͷ ͺǤͻ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͺ
ͺǤͼ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͺͼ
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ͻǤͷ ǦǦǦǦǦǦǦǦͺ;
ͻǤ ǦǦǦǦǦͻ
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ͼǤͷǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͻ;
ͼǤǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ͼǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͼͺ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͽͶ
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ʹǤʹ ǡ ǦǦǦͺ
ʹǤ͵ ǡ
ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͳͲ
ʹǤͶ ǡ
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ͶǤͳ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͶ͵
ͷǤͳ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͲ
ͷǤʹ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͷͶ
ͳ ǡʹͲͲǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦͲ
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ȋʹͲͲͲȌ ͵ͻΨ ʹͻΨ
ȋʹͲͲ͵Ȍ ͶʹΨ ͵ͺΨ ͵Ψ
ȋͳͻͻͻȌ ͶͺΨ
ȋʹͲͲʹȌ ͶΨ ͶͷΨ
ȋͳͻͻȌ ͶͻΨ
ȋͳͻͻͺȌ ͶͺΨ
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ȋȌ ͺͶǤͻͻ ͻͺǤͳ ͺͳͶǤͳͶ
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ͶͶǤ
ȋ ʹͲͲʹȌǤ
Ǥ ǡ ǡ
Ǥ ʹΨ
ǡʹͻΨʹͶΨȋ
ʹǤ͵ȌǤ
ʹǤ͵ǡ Ǥ
ǡʹͻΨǤǡ
Ǥ ʹͲΨ
ͶͲΨ Ǥ ǡ Ǥ
ȋʹʹǤͷΨȌ ȋʹͻΨȌ
ȋʹ͵Ǥ͵ΨȌǤ
ǡ ʹǤΨ ͳͻͻʹȀͻ͵
͵ǤͷΨͳͻͻͺȀͻͻ ͷǤͷΨʹͲͲͳȀͲʹȋ ʹͲͲʹȌǤ
ʹΨͳͻͻͷ
ʹͻΨʹͲͲͲǤ ǡ ǡ
͵ͷǤͷΨͳͻͻͷͷͺǤͻΨʹͲͲͲȋ ʹͲͲʹȌǤ
ʹǤ͵ ǡ
ͶǤͻ ͶǤͷ ͷǤͺͶ
͵Ǥͻ ͵Ǥ ͷǤͲͶ
ͳǤͳͷ ͲǤͺͻ ͳǤͷ
ͶͶ Ͷ ͷ͵
ȋΨȌ ʹ ʹͻ ʹͶ
ȋΨȌ ʹͻ ʹ͵Ǥ͵ ʹʹǤͷ
ȋʹͲͲʹȌ ȋʹͲͲʹȌ
ǤʹǤͶǡʹǤͷΨ
Ǥ
ͺͺǤͶͷΨ
ǡ ͷǤͺΨ
Ǥ ͳʹ͵Ǥʹ
Ǥ
ǯ ǡ
ǤͶΨ
Ǥ
ͳǤͲʹ ȋ ʹͲͲʹȌ
ͲǤͺ Ǥǡ
ͶǤͳ ͵Ǥ ȋ ȋʹͲͲʹȌǡ ͵ǤͲ
Ǥ
Ǧ Ǥ ǡ ǡ
Ǥ
ǡ
Ǥ
Ǥ
ʹǤͶǡ Ǧ
ȋǤ͵ΨȌ
ȋʹǤͺΨȌ ȋʹǤͳͷΨȌǤ ǡ
Ǧ ǯ Ǥ
ǡ
Ǥ
ʹǤͶ ǡ
ʹǤͷ͵ ͷǤͺ ͺͺǤͶͷ
ʹǤͺ ʹǤͳͷ Ǥ͵
ͷǤ͵
͵Ǥͺ
ͳǤͲʹ
͵Ǥͺͺ ͶǤͶ ʹǤͺͳ
ͲǤʹʹ ͲǤͲͺ ͲǤͲ
͵Ǥͷ͵ ͵Ǥͳ ͲǤͲ
ȋȌ ͲǤͲͳͶ ͲǤͲʹͳ ͲǤͲ
ͳͳǤ ͳͲǤͷ ͳǤ͵ͷ
ͳͲͲǤͲͲ ͳͲͲǤͲͲ ͳͲͲǤͲͲ
ȋʹͲͲʹȌ
ȋʹͲͲʹȌ
ʹǤʹ
Ǧ Ǧ
ȋȌǡ
Ǥǡǡ
Ǥ ǡ ǤͶͲȀͳͻͻ
Ǥ
ǡ ǡ
ȋʹͲͲȌǤ
ʹǤʹǤͳ
ǤȋȌ ǡ
ǡ ǡ ǡ
Ǥ ͺ͵ȀͳͻͻͶǤ ǡ
ǤͺͶȀͳͻͻͶ ǡ
Ǥ
ǡǡǡ
ǡ Ǥ
ǡ ȋ
ʹͲͲʹȌǤ ͳͻͻǡ Ǥ ͶͲȀͳͻͻ
Ǥ ǡ
ǡ
ʹͲͲͲͲͲȋ̈́ʹʹͷ͵Ǥ͵ȌǤ
Ǥ ͶͲȀͳͻͻǡ
ͷͲͲͲȋ̈́ͷ͵ͶǤ͵͵Ȍǡ
ǡ Ǥ
Ǥ
ʹͲͲ͵ǡ ʹʹ
Ǥ ǡ
ǡ ǡ
Ǥǡ
ǡ
ǡ ȋʹͲͲȌǤ
ʹǤʹǤʹ ȋȌ
ǡ ǡ
ͳͻͻǤ
Ǯ
ǯ Ǥǯ
ǡ
ȋʹͲͲͶȌǤ
Ǥ
ǣ ǡ ǡ
Ǥǡ
Ǯ ǯ
ǡ
Ǥǡ
Ǥ
ǡ
Ǥ ǡ ǣ
Ǧ Ǥ
ǡ Ǯ ǯ
ȋʹͲͲͶȌǤ
CHAPTER THREE: LITERATURE REVIEW
͵Ǥͳ
͵ǤͳǤͳ ǯ
Ǥ ǡ
ǯǦ Ǥ ȋͳͻͻͷȌ
Ȁ ǡ
ȋȌǡǤ
ȋͳͻͻͷȌ Ǧ ȋDz
dz dzȌ ǯ Ǥ
Ǥ
Dz dz
ǡ
Ǥ ǡ
ǡǯ
ȋͳͻͻͷȌǤ
ǡ Dz dz
ǡ
ǯ ǡ
Ǥ ǡ
ȋʹͲͲʹȌǡ
ǡ
Ǥ
͵ǤͳǤʹ
Ǥ Ǣ Ǣ
ȋ ȌǢ
Ǣǡ ȋͳͻͻȌǤ ǡ
ǡ
Ǥ ǡ
ǡ
Ǥ
Ǥ
͵ǤͳǤ͵
ǡ
Ǥ ǡ
ǡ
Ǥ ǡ
ǡ ǡ ǡ Ǥ ȋͳͻͻͺȌǡDz
dzǤ ǡ
ǡ
ǡ ǡ ǡ ǡ Ǥ ǡ
ǡ
Ǥ ǡ
ǡ
Ǥ
ȋͳͻͺͳȌǡǡ ǡ
ǡ
Ǥǡ
Ǥ
ǡ
Ǥ
ǡ
Ǥ
Ǥ
Ǥ ǡ Ǧ
ǡ
Ǥ ǡ
Ǥǡ
Ǧ
Ǧ ǡ
Ǥ
͵ǤͳǤͶǤ
͵ǤͳǤͶǤͳ
Ǥ
Ǧ ǡ
Ǥ
ǡ
Ǥ
Ǥ ȋͳͻͻ͵Ȍǡ
ǡ
Ǥ ǡ ǡ Ǧ
Ǥ
ǡǡ ȋ
ͳͻͻͲǢ ͳͻͻͻǢ ͳͻͻͷȌǤ ǡ
ǡ
ȋǦͳͻͻͻȌǤ
ǡ ȋʹͲͲͲȌǡ Ǧ
ǡ
ǡ Ǧ Ǥ
ǡ
ǡ Ǥ ǡ
Ǥ
͵ǤͳǤͶǤʹ
ǡ
Ǥ ǡ
ǡ
ȋͳͻͻͺȌǤ
ǡ
ǤDz
Ǯ ǯ Ǧ Ǥ
Ǥ
ǡ Dz dzǡ
ǡ
ȋ ͳͻͻͻ ͳͻͻͺȌǤ
ǡ Ǧ
Ǥ ǡ
ǡ
Ǥ
ǡ
ȋ
ʹͲͲʹȌǤ
ǡ Ǯ ǯǡ
ǤǮ ǯ
Ǥ Ǧ
Ǯ ǯǤ
Ǯ ǯ ͷͲͲͲ ǡ
ͷͲ ǤǡͳͲͲΨǡͷΨǡͷͲΨ