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Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam

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Author Info
Stampini, Marco () (African Development Bank)
Davis, Benjamin () (Food and Agriculture Organization of the United Nations)

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Abstract

We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non-agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3403.

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Length: 30 pages
Date of creation: Mar 2008
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Handle: RePEc:iza:izadps:dp3403

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Related research
Keywords: rural labor markets; linkages; credit constraints; Vietnam;

Find related papers by JEL classification:
J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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This page was last updated on 2009-11-23.

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