The Theory of Development Finance

The book explores the problem of credit market segmentation, a widesprea phenomenon in developming countries, within a theoretical frameowrk based on graphical analysis. It invetigates the causes and effects of this problem, and he impact of possible solutions. Credit market segmentation is an outgrowth of information-related problems and high transactioncosts 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 anaysis shows that microcredit programmes can eliminate the causes and effects of credit market segmentatinand the their impact is much broader than is usually assumed. thid book shudl be requied reading for everyone who is interested in microcredit. 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 Distributtion and growth.