Abstract
AbstractCredit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The purpose of this study was to examine the farmers’ access to credit: does collateral matter or cash flow matter?—evidence from Sindh province of Pakistan. The random sampling technique was used to collected data from 300 rural households through a face-to-face interview. To find the important factors affecting access to credit in Sindh province of Pakistan, we performed descriptive statistics and probit regression model. The results of probit regression model showed that gender, household size, educational level, farming experience, farm size, income, and availability of collateral have positive effect on farmers’ access to credit, while age has a negative and statistically insignificant effect on the farmers’ access to credit. Therefore, this study recommended that institutional ...
Highlights
It’s very critical for smallholders to access credit in developing countries of the world
Our results suggest that smallholder farmers in Sindh province have limited access to formal credit, including the agricultural credits provided by ZaraiTaraqiati Bank Limited (ZTBL) and other commercial banks
This study is based on probit model has established eight household-level factors important in influencing farmers’ likelihood to access credit, including age, gender, household size, educational level, farming experience, landholding size, collateral, and income
Summary
It’s very critical for smallholders to access credit in developing countries of the world This is all due to total production of farmers and improvement in agricultural production per unit input. Abbas Ali Chandio is the PhD research scholar in college of Economics, Sichuan Agricultural University, Chengdu, China He won Sichuan Government Scholarship (SGS) 2014 sponsored by SAU. His major interests include Rural Finance, Agricultural Economics, Agricultural Development, Development Economics, Econometrics, Financial Economics, Microeconomics, Macroeconomics, Regional Economics, Sustainable Agriculture and Regional Rural Development. Due to his excellent research work, he has been awarded with Excellent International Students Award in 2017.
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