Differential Access to Capital and Its Impact on Rural Polarization in Colonial Korea Woo, Dae-Hyung* It has long been believed that differential access to the credit which government subsidized plays critical roles in explaining the difference in input use, especially fertilizer, and consequently in productivity in the developing countries. As a result, it has been frequently argued that rural development should begin with the credit reform. However, there is little evidence that the lack of access to formal or government-controlled credit is determining the farm income. This paper presented some evidence supportive this argument, examining the relationship of agricultural income, intensity of fertilizer use and shadow price of fertilizer across farms in colonial Korea.

Differential Access to Capital and Its Impact on Rural Polarization in Colonial Korea Woo, Dae-Hyung* It has long been believed that differential access to the credit which government subsidized plays critical roles in explaining the difference in input use, especially fertilizer, and consequently in productivity in the developing countries. As a result, it has been frequently argued that rural development should begin with the credit reform. However, there is little evidence that the lack of access to formal or government-controlled credit is determining the farm income. This paper presented some evidence supportive this argument, examining the relationship of agricultural income, intensity of fertilizer use and shadow price of fertilizer across farms in colonial Korea.

Green Revolution, New Technology, Access to credit, Price of fertilizer, Polarization in rural area, Agricultural productivity