Asian Journal of Research in Social Sciences and Humanities
  • Year: 2013
  • Volume: 3
  • Issue: 11

Determinants of Disbursements by Andhra Pradesh State Financial Corporation - An Empirical Analysis

  • Author:
  • S. Marulu Reddy, B. Appala Swamy
  • Total Page Count: 15
  • Page Number: 243 to 257

Department of Economics, Andhra University, Visakhapatnam, Andhra Pradesh, India

Online published on 7 November, 2013.

Abstract

The objectives of the paper are to analyse the determinants of disbursements of APSFC during the period 1980–81 to 2008–09 and to examine regional inequalities in terms of sanctions and disbursements by APSFC during the period 1990–91 to 2008–09. The two variable linear regression results show that principal recovery is found to be significant determinant of disbursements in the 2nd period and for the total period. Interest amount collected is found to be the significant determinant for disbursements in the 1st and 3rd periods. In the case of elasticities also similar results are obtained.

In the case of regional inequalities for term loan sanction by APSFC to SSI sector, the CV has been reduced in all the regions along with Andhra Pradesh from 1st period to 2nd period. In terms of assistance sanctioned, Coastal Andhra and Rayalaseema have been witnessed increasing CV while Telangana and Andhra Pradesh have been noticed declining CV from 1st period to 2nd period. For assistance disbursed from 1nd period to 2nd period, except in Rayalaseema region, remaining all regions have been noticed declining trend.

CV for MSI sector sanctions by APSFC is considered, Coastal Andhra and Rayalaseema regions are shown increasing CV while Telangana and Andhra Pradesh regions shows declining trend from 1nd period to 2nd period. As far as assistance sanctioned and assistance disbursed from 1nd period to 2nd period are taken into account, CV for all regions identified increasing trend.

CV for region wise term loan sanctions by APSFC reveals that all the regions along with Andhra Pradesh shows declining CV from 1nd period to 2nd period. Regarding assistance sanctioned from 1nd period to 2nd period, except in Telangana all the remaining regions are witnessed an increasing trend in CV. For assistance disbursed the CV has been noticed a declining trend in the case of Coastal Andhra and Telangana while it has been witnessed an increasing trend for Rayalaseema and Andhra Pradesh.