Capital market access, factor demand, and agricultural development in rural areas of developing countries: The case of Uganda Klaus Deininger and John Okidi 1 We test for the impact of credit market access on agricultural productivity and off-farm investment using data from a 1992 survey of 10,000 Ugandan households. Results indicate that development of local financial markets improves efficiency of (purchased) input use in agriculture and promotes diversification and non-agricultural investment. 1 World Bank and Economic Policy Research Center, Kampala; kdeininger@worldbank.org and EPRC@imul.com. 1