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The Impact Of Credit And Capital Supports On Economic Behavior Of Farm Households: A Household Economic Approach

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  • de Rosari, Bernardus Bala
  • Sinaga, Bonar Marulitua
  • Kusnadi, Nunung
  • Sawit, Mohamad Husein

Abstract

This research aimed at analysing the demand and allocation of credit and capital supports by farm household and impact on production, consumption, and investment. The research was conducted in East Nusa Tenggara Timur (ENT) Province, one of targeted region of credit and capital supports policy of the government. Data collection was conducted from April to June 2013 by sampling for 178 households of farmers in Kupang District and Timor Tengah Selatan (TTS) District. The result of this research showed that the allocation of credit and capital supports caused increaseof cattle production, consumption expenditure, and investment. The usage of credit and capital supports was depend on economical situation of the household itself. The decision of farm household on using credit and capital supports had impact on overall economical behavior of household, i.e. production, consumption and investment behavior. The transmission use was reciprocally interacted. Finally, the policy of credit and capital supports scheme for farmers should be adjusted with the context of farm household economics.

Suggested Citation

  • de Rosari, Bernardus Bala & Sinaga, Bonar Marulitua & Kusnadi, Nunung & Sawit, Mohamad Husein, 2014. "The Impact Of Credit And Capital Supports On Economic Behavior Of Farm Households: A Household Economic Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-10, July.
    • Handle: RePEc:ags:ijfaec:186269
    DOI: 10.22004/ag.econ.186269
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    References listed on IDEAS

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    3. Anjana Bhattacharyya & Subal C. Kumbhakar, 1997. "Market Imperfections and Output Loss in the Presence of Expenditure Constraint: A Generalized Shadow Price Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 860-871.
    4. Tadashi Sonoda & Yoshihiro Maruyama, 1999. "Effects of the Internal Wage on Output Supply: A Structural Estimation for Japanese Rice Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 131-143.
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    1. Mahlako Nthabeleng Mokgomo & Clarietta Chagwiza & Phathutshedzo Fancy Tshilowa, 2022. "The Impact of Government Agricultural Development Support on Agricultural Income, Production and Food Security of Beneficiary Small-Scale Farmers in South Africa," Agriculture, MDPI, vol. 12(11), pages 1-21, October.

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