Access to credit and economic well-being of rural households: Evidence from Eastern India

Anjani Kumar, Ashok K. Mishra, Vinay K. Sonkar, Sunil Saroj

Research output: Contribution to journalArticle


We evaluate the impact of access to credit on rural households' per capita annual income using an endogenous switching regression approach, an increasingly popular method of tackling the selection bias issue in impact analyses. Using a large survey of rural households in eastern India, we find that access to credit is strongly associated with rural households' socioeconomic and demographic characteristics. Additionally, access to credit increases rural households' economic well-being; nonborrower rural households would benefit the most from access to credit. Access to credit affects recipients heterogeneously, implying that credit policies should be adaptable to different rural household groups.

Original languageEnglish (US)
Pages (from-to)145-160
Number of pages16
JournalJournal of Agricultural and Resource Economics
Issue number1
StatePublished - Jan 1 2020



  • Endogenous switching regression
  • Formal credit
  • Informal credit
  • Per capita household income
  • Social safety net
  • Welfare

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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