International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

Does Farmers’ Behavior Decreases Corruption?
Suvayan De

In most of the underdeveloped countries, farmers rely on informal credit for various kinds of loans. However the number of credit institutions giving formal credit for helping farmers to grow crops is increasing. The amount of formal credit is determined by the official who takes bribe for giving loans to the farmers. On the other hand, the farmer gets an advantage from getting loans from the moneylender for many reasons such as it creates a bonding and helps the farmer to approach the moneylender when credit is needed for different purpose. We have shown that if the farmer behaves in this way, then at the new equilibrium, the total amount of bribe charged by the official will decrease as a result.

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