IDEAS home Printed from
   My bibliography  Save this article

Analyzing the Impact of Structural Change in Iranian Agricultural Credit System


  • Yazdani, Saeed


Replacement of the traditional interest based credit system with an Islamic credit system was one of the fundamental changes in Iran since 1979. The Islamic credit system, offers the prospect of risk sharing between the borrower and the lender. Small farmers are likely to be risk averse and they are reluctant to go heavily into debt in order to finance investments in new technology and capital intensive methods of production which they perceive to be risky. Farmer's decision making behaviour with regard to risk under the Islamic and interest based credit systems are explored with the aid of a simple conceptual model. Analysis of attitudinal data suggests that the majority of small farmers prefer credit provided under the Islamic credit system. Farmers' preferences for taking out loans from an Islamic credit system were found to be related to a number of factors. Risk sharing and religious acceptability of the profit and loss sharing loans over the interest based loans were two significant reasons.

Suggested Citation

  • Yazdani, Saeed, 2006. "Analyzing the Impact of Structural Change in Iranian Agricultural Credit System," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), August.
  • Handle: RePEc:ags:aergaa:44109

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Thomas C. Beierle & David M. Konisky, 2000. "Values, conflict, and trust in participatory environmental planning," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(4), pages 587-602.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Santeramo, Fabio Gaetano & Capitanio, Fabian & Adinolfi, Felice, 2014. "Integrating Agricultural Risks Management Strategies in selected EU Partner Countries: Syria, Tunisia, Turkey," MPRA Paper 58935, University Library of Munich, Germany, revised 2014.
    2. Santeramo, Fabio Gaetano & Adinolfi, Felice & Capitanio, Fabian & Contò, Francesco & Sasala, Piero, 2013. "Coping with Risks in the Mediterranean Countries? Let the experts explain," MPRA Paper 49852, University Library of Munich, Germany.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aergaa:44109. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.