scholarly journals Credit Constraints and Agricultural Productivity of Rural Households in Nigeria

2019 ◽  
Author(s):  
Olugbenga Omolade ◽  
Abimbola Adepoju
Keyword(s):  
Credit Constraints ◽  
Rural Households ◽  
Agricultural Productivity

scholarly journals Research on the Impact of Relationship Networks on Farmers’ Formal Credit Constraints: The Case of China

2021 ◽  
Vol 11 (4) ◽  
Author(s):  
Lun-song Chen ◽  
Bi-Lin Sun
Keyword(s):  
Credit Constraints ◽  
Rural Households ◽  
Credit Constraint ◽  
Constraint Function ◽  
Relationship Networks ◽  
Social Interests ◽  
Relationship Network ◽  
The Impact ◽  
The Relationship

Based on the survey data of Lishui City, Zhejiang Province, this paper uses the Heckman two-stage model to construct a credit constraint function without selection bias, and explores the relationship between the scale and quality of the relationship network and the credit constraints of rural households. Research shows that the scale of the relationship network is affected adversely by urbanization and networking, having a weaker impact on the formal credit constraints of rural households. The quality of the relationship networks can improve farmers’ awareness of formal credit, reduce transaction exposure, regulate farmers’ behavior and act as a “guarantee”, thereby effectively alleviating farmers’ formal credit constraints. At the same time, the relationship network of farmers is gradually becoming more structured, where farmers' social interests are becoming more purposeful. Additionally, formal financial institutions have set a threshold for farmers’ credit, which requires a certain amount of securities for money.

Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda

2014 ◽  
Vol 50 (5) ◽  
pp. 649-665 ◽  
Author(s):  
Daniel Ayalew Ali ◽  
Klaus Deininger ◽  
Marguerite Duponchel
Keyword(s):  
Credit Constraints ◽  
Agricultural Productivity

scholarly journals Credit Constraints and Rural Households’ Entrepreneurial Performance in China

2020 ◽  
pp. 1-14
Author(s):  
Chen Weng ◽  
Hui Wang ◽  
Nico Heerink ◽  
Marrit van den Berg
Keyword(s):  
Credit Constraints ◽  
Rural Households ◽  
Entrepreneurial Performance

Rural households’ participation in charcoal production in Zambia: Does agricultural productivity play a role?

2017 ◽  
Vol 26 ◽  
pp. 56-62 ◽  
Author(s):  
Brian P. Mulenga ◽  
Protensia Hadunka ◽  
Robert B. Richardson
Keyword(s):  
Rural Households ◽  
Agricultural Productivity ◽  
Charcoal Production

scholarly journals Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China

Land ◽  
2021 ◽  
Vol 10 (9) ◽  
pp. 899
Author(s):  
Wenjing Han ◽  
Zhengfeng Zhang ◽  
Xiaoling Zhang ◽  
Li He
Keyword(s):  
Rural Households ◽  
Agricultural Productivity ◽  
Household Survey ◽  
Farm Size ◽  
Farm Income ◽  
Rural Land ◽  
Total Income ◽  
Land System ◽  
Rural Land System ◽  
On Farm

The rural land rental market is playing an increasingly important role in the agricultural transformation period for developing countries, including China, where rural farmland rental is highly context-specific with the implementation of the collective-owned rural land system; thus, in turn, the access to farmland rental markets for rural households has profoundly influenced their livelihood strategies and income earnings. This paper investigates the income impact differences caused by rural households’ farmland rental participation activities and explores such impact mechanisms by further evaluating the income impacts caused by rental area and household agricultural productivity. Data from the Chinese national household survey were used for estimating the empirical models. Our results show that farmland renting has positively affected households’ on-farm and total income, but there is no significant effect upon off-farm income. According to income differences across quantiles, we find households with high on-farm income are more sensitive about enlarging their farm size by renting farmland, and households with middle and upper-middle off-income may benefit more from renting out their farmland. Furthermore, the joint effects of renting area and household agricultural productivity on lessee households’ farm income is significantly positive. For lessor households, our results indicate that renting out farmland did not improve their off-farm and total income as it may have a limited effect on farm household labor distribution. Our findings suggest that engaging in farmland rental activity can enhance farming productivity efficiency and poverty alleviation among rural households. Under the collective-owned rural land system, it is urgent and necessary to initiate and design incentive policies to encourage highly efficient large farms to expand the farm size and provide smallholders with equal opportunities to engage in farmland rental activities.

Agricultural labour productivity and credit constraints: implications for consumption in rural Ghana

2020 ◽  
Vol 11 (2) ◽  
pp. 331-351
Author(s):  
Haruna Issahaku ◽  
Ishaque Mahama ◽  
Reginald Addy–Morton
Keyword(s):  
Quantitative Estimation ◽  
Credit Constraints ◽  
Labour Productivity ◽  
Rural Households ◽  
Farm Size ◽  
Living Standard ◽  
Content Type ◽  
Wide Range ◽  
Agricultural Labour Productivity ◽  
The Impact

PurposeThe purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural labour productivity on rural households' consumption in Ghana.Design/methodology/approachThis study uses the Ghana Living Standard Survey round six (GLSS 6) as the main source of data, which happens to be one of the most comprehensive household datasets in Ghana. Quantitative estimation techniques (namely: Endogenous Switching Regression and Two Stage Least Squares) are used to address possible endogeneity and selection into credit markets.FindingsFirst, large households are prone to credit constraints while age (experience) and compliance with extension advice reduce credit constraints. Second, the determinants of agricultural labour productivity for both constrained and unconstrained households are age, sex, farm equipment, herbicide and farm size. Third, household size, education and livestock rearing influence agricultural labour productivity of constrained households. Fourth, credit constraints, irrespective of how they are measured, impede agricultural labour productivity while access to credit fosters labour productivity. Lastly, credit constraints robustly reduce consumption while agricultural labour productivity strongly enhances rural households' consumption.Originality/valueThe first contribution is that, unlike most previous studies, we do not focus on the widely used measure of productivity – output per unit land, but on agriculture labour productivity in particular. Secondly, unlike most previous studies which examine the effect of credit constraints either on productivity alone or consumption alone, our study examines the impact of credit constraints on both. Thirdly, unlike the existing literature which uses one or two measures of credit constraints, we use a wide range of measures of credit constraints – seven different measures of credit constraints. Lastly, our empirical strategy solves at least two critical econometric problems – sample selection bias and endogeneity.

Effects of credit constraints on rural household technical efficiency

2014 ◽  
Vol 6 (4) ◽  
pp. 654-668 ◽  
Author(s):  
Jianmei Zhao ◽  
Peter J. Barry
Keyword(s):  
Technical Efficiency ◽  
Credit Constraints ◽  
Rural Households ◽  
Northern China ◽  
Rural Household ◽  
Policy Implications ◽  
Supply Side ◽  
Demand Side ◽  
Tobit Regression ◽  
Content Type

Purpose – The purpose of this paper is to evaluate the effects of access to formal credit on rural household technical efficiency in China. Design/methodology/approach – Based on the rural household survey data in Weifang city, Shandong province in northern China, the authors apply recent developed bootstrapped DEA approach to investigate rural technical efficiency at the household level under the consideration of off-farm activities. Rural households are then identified as credit constrained and classified as supply-side and demand-side credit constraints by applying direct elicitation method. Finally, the authors apply a tobit regression to examine the effects of credit constraints on household technical efficiency. Findings – Rural households in China not only suffer supply-side credit constraints, but also demand-side credit constraints resulted from the transaction costs and risk rationing. The tobit regression discloses that demand-side credit constraints impose significant negative impacts on household technical efficiency. Originality/value – The authors clarify the definition of credit constraints and classify the credit constraints into supply-side and demand-side credit constraints. The results of this paper have significant policy implications for rural finance policies in China.

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