# Table 15: Capital Market Incompleteness and Inequality, Malawi (ISA 2010)

## (A) Rural Residency

## (B) Urban Residency

|(A1) Population Shares (%)|by Ability to Borrow|||||||(B1)|Population Sh|ares (%) by Ability to Borrow|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Applied|||Not Applied|||||Applied|Not Applied|||
||Got Loan<br>Loan D|enied|Ne|eded<br>Not ne|eded|||Got|Loan<br>Loan D|enied<br>Needed<br>Not Ne|eded||
|Population 2010|13<br>7|||56<br>25||||2|0<br>7|40<br>33|||
|(A2) Averages US$ by Ability|to Borrow|||||||(B2)|Averages US$|by Ability to Borrow|||
||Applied|||Not Applied|||||Applied|Not Applied|||
||Got Loan<br>Loan D|enied|Ne|eded<br>Not ne|eded|||Got|Loan<br>Loan D|enied<br>Needed<br>Not ne|eded||
|Consumption|1635<br>139|1|1|237<br>148|1|||28|84<br>217|9<br>2145<br>378|1||
|Income|1390<br>108|5|9|12<br>135|8|||29|33<br>129|9<br>1359<br>368|2||
|Wealth|1566<br>120|0|1|089<br>157|3|||33|33<br>188|8<br>1509<br>511|7||
|_▷_Land|834<br>558||5|16<br>550||||42|0<br>58|3<br>310<br>507|||
|(A3) Population Shares (%)|by Consumption, Inc|ome, a|nd Weal|th Partitions||||(B3)|Population Sh|ares (%) by Consumption, Incom|e, and|Wealth Partitions|
||Bottom (%)||Quin|tiles|To|p (%)|All|Bo|ttom (%)|Quintiles|T|op (%)<br>All|
||1<br>1-5<br>5-10|1st|2nd<br>3|rd<br>4th<br>5th<br>|10-5|5-1<br>1|0-100|1|1-5<br>5-10|1st<br>2nd<br>3rd<br>4th<br>5th|10-5|5-1<br>1<br>0-100|
|||Co|nsumpti|on Quintiles||||||Consumption Quintiles|||
|App. Accepted (%)|8<br>7<br>7|8|10|12<br>15<br>18|19|17<br>27|13|14|15<br>22|24<br>22<br>20<br>12<br>23|22|19<br>32<br>20|
|Median _i >_0|14<br>11<br>10|10|7|8<br>7<br>5|5|7<br>3|7|-|7<br>25|5<br>5<br>5<br>3<br>2|2|2<br>5<br>4|
|Length loan m. _i >_0|7<br>9<br>4|6|6|4<br>5<br>6|6|6<br>18|5|-|12<br>2|10<br>5<br>6<br>6<br>8|11|14<br>4<br>8|
|Length loan m. _i ≤_0|4<br>6<br>2|2|4|4<br>2<br>3|3|3<br>6|3|-|5<br>1|4<br>4<br>5<br>10<br>6|23|23<br>-<br>5|
|Borrowing US$ _i >_0|34<br>7<br>22|28|31|36<br>27<br>96|71|96<br>432|41|-|66<br>33|7<br>134<br>68<br>263<br>333|302|1345<br>672<br>124|
|Borrowing US$ _i ≤_0<br>|7<br>15<br>10<br><br>|8|14|31<br>17<br>21<br>|21<br>|26<br>185<br><br>|15|-<br>|14<br>3|13<br>35<br>27<br>202<br>201<br><br><br><br>|269|2158<br>-<br>42<br><br>|
|App. Denied (%)<br>|11<br>10<br>5|7|5|6<br>7<br>7|6|10<br>3|7|3|5<br>4|8<br>7<br>9<br>8<br>3|4|1<br>1<br>7|
|Not App.: Needed (%)|58<br>60<br>61|60|60|59<br>56<br>46|48|40<br>24|56|76|65<br>59|49<br>46<br>45<br>36<br>23|23|13<br>7<br>40|
|Not App.: No Need (%)|23<br>24<br>26|25|25|23<br>23<br>29|36|46<br>28|25|7|15<br>15|19<br>25<br>26<br>44<br>52|51|67<br>60<br>33|
||100<br>100<br>100|100|100<br>1|00<br>100<br>100|100|100<br>100|100|100|100<br>100|100<br>100<br>100<br>100<br>100|100|100<br>100<br>100|
||||Income|Quintiles||||||Income Quintiles|||
|App. Accepted (%)|6<br>7<br>9|9|9|14<br>14<br>17|15|19<br>16|13|21|20<br>26|21<br>22<br>20<br>17<br>21|22|27<br>35<br>20|
|Median _i >_0|-<br>6<br>10|13|10|7<br>6<br>4|4|4<br>3|7|2|6<br>8|4<br>5<br>5<br>3<br>2|2|2<br>2<br>4|
|Length loan m. _i >_0|-<br>6<br>5|4|8|4<br>5<br>6|7|6<br>6|5|15|4<br>6|6<br>10<br>4<br>7<br>9|9|8<br>16<br>8|
|Length loan m. _i ≤_0|4<br>1<br>3|3|3|4<br>2<br>4|3|4<br>-|3|-|4<br>4|4<br>5<br>5<br>5<br>16|1|23<br>-<br>5|
|Borrowing US$ _i >_0|-<br>22<br>15|15|21|36<br>74<br>74|71|100<br>133|41|68|135<br>34|34<br>21<br>134<br>34<br>329|269|484<br>2698<br>124|
|Borrowing US$ _i ≤_0|7<br>5<br>7|7|8|22<br>15<br>28|26|28<br>-|15|-|14<br>13|14<br>35<br>30<br>132<br>483|17|2158<br>-<br>42|
|App. Denied (%)|5<br>7<br>8|7|6|6<br>7<br>7|7|6<br>4|6|2|7<br>9|10<br>7<br>7<br>9<br>2|2|2<br>0<br>7|
|Not App.: Needed (%)|54<br>68<br>62|63|63|59<br>55<br>41|44|33<br>28|56|40|37<br>46|47<br>49<br>42<br>39<br>23|26|14<br>7<br>40|
|Not App.: Not Needed (%)|35<br>19<br>21|22|22|21<br>25<br>35|35|42<br>52|25|37|36<br>18|23<br>22<br>35<br>53<br>56|51|57<br>58<br>33|
||100<br>100<br>100|100|100<br>1|00<br>100<br>100|100|100<br>100|100|100|100<br>100|100<br>100<br>100<br>100<br>100|100|100<br>100<br>100|
||||Wealth|Quintiles||||||Wealth Quintiles|||
|App. Accepted (%)|31<br>17<br>10|12|11|10<br>13<br>16|19|20<br>15|13|39|12<br>14|22<br>19<br>21<br>17<br>23|26|28<br>17<br>20|
|Median _i >_0|2<br>7<br>6|6|10|10<br>8<br>4|5|4<br>12|7|4|-<br>7|7<br>5<br>3<br>3<br>2|2|2<br>5<br>4|
|Length loan m. _i >_0|12<br>5<br>7|7|4|5<br>4<br>6|8|6<br>4|5|9|-<br>3|5<br>10<br>9<br>5<br>9|16|12<br>4<br>8|
|Length loan m. _i ≤_0|2<br>4<br>3|3|3|5<br>4<br>3|3|3<br>4|3|5|-<br>5|4<br>6<br>1<br>10<br>7|6|23<br>-<br>5|
|Borrowing US$ _i >_0|295<br>31<br>106|43|36|37<br>28<br>71|62|50<br>133|41|202|-<br>197|129<br>47<br>35<br>34<br>329|672|672<br>1008<br>124|
|Borrowing US$ _i ≤_0|8<br>32<br>14|14|14|22<br>14<br>25|37|26<br>41|15|30|-<br>52|30<br>68<br>17<br>67<br>201|201|2158<br>-<br>42|
|App. Denied (%)|6<br>6<br>8|6|6|7<br>7<br>7|7|7<br>4|6|5|16<br>10|9<br>6<br>6<br>7<br>6|10|3<br>0<br>7|
|Not App.: Needed (%)|29<br>55<br>58|58|60|57<br>57<br>48|47|41<br>39|56|37|67<br>43|45<br>43<br>43<br>44<br>24|17|15<br>16<br>40|
|Not App.: Not Needed (%)|33<br>22<br>25|24|23|25<br>23<br>29|26|32<br>41|25|19|5<br>34|24<br>32<br>29<br>32<br>48|47|54<br>67<br>33|
||100<br>100<br>100|100|100<br>1|00<br>100<br>100|100|100<br>100|100|100|-<br>100|100<br>100<br>100<br>100<br>100|100|100<br>100<br>100|

_Notes:_ All variables are averages in current USD. The construction of the variables on the credit market is discussed in Section 5.4.