| This thesis has two objectives. The first is to analyse the consumption, saving and borrowing behaviour of agricultural households. Specifically, by using the permanent income hypothesis (PIH) as a theoretical framework, and secondary data sources, this thesis argues that consumption smoothing is an important aspect of household behaviour in India, Thailand and Pakistan. There is also evidence among agricultural households in these countries that households smooth their consumption more by borrowing than by changing their savings positions. Given the importance of borrowing among agricultural households, the second objective of this thesis is to investigate the nature of financial intermediation in the rural sector of the three countries. It is observed that there are several forms that intermediation can take, ranging from formal, quasi-formal to informal. The prominence of one form of intermediations versus the others is a function of its ability to minimise transaction costs and acquire information. |
