Institutional credit and rice productivity: a case study of District Lahore, Pakistan
AbstractPurpose – The purpose of this paper is to analyze how institutional credit affected the productivity of rice crop in District Lahore, Punjab Pakistan. Design/methodology/approach – For this purpose, stratified random sampling technique was adopted to select the sample respondents. The district was divided into three strata; from each stratum two villages were randomly selected and from each village ten loanee farmers were randomly selected from the given list of borrowers. An equal number of non-loanee farmers were also selected. Cobb Douglas function was used to calculate the impact of credit on rice productivity. Findings – The coefficient of credit was significant, which indicated that credit has a positive impact on the productivity of rice, providing a clue that credit is an important tool for improving and increasing the agricultural productivity in general and that of rice in particular. Originality/value – The paper will be an important addition to the literature in the current credit impact studies and will help especially the agricultural planners who are responsible for allocating funds for the agricultural sector in general and for the rice sector in particular. The paper's recommendations will help mitigate the problems of the farming community, especially of the small farmers in securing the institutional credit.
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal China Agricultural Economic Review.
Volume (Year): 2 (2010)
Issue (Month): 4 (November)
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Find related papers by JEL classification:
- D20 - Microeconomics - - Production and Organizations - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Muhammad Khalid Bashir & Zulfiqar Ahmad Gill & Sarfraz Hassan, 2009. "Impact of credit disbursed by commercial banks on the productivity of wheat in Faisalabad district," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(3), pages 275-282, September.
- Muhammad Iqbal & Munir Ahmad & Kalbe Abbas, 2003.
"The Impact of Institutional Credit on Agricultural Production in Pakistan,"
The Pakistan Development Review,
Pakistan Institute of Development Economics, vol. 42(4), pages 469-485.
- Iqbal, Muhammad & Ahmad, Munir & Abbas, Kalbe, 2003. "The Impact of Institutional Credit on Agricultural Production in Pakistan," MPRA Paper 3673, University Library of Munich, Germany, revised 2003.
- Carter, Michael R., 1989. "The impact of credit on peasant productivity and differentiation in Nicaragua," Journal of Development Economics, Elsevier, vol. 31(1), pages 13-36, July.
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