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Influence of Digitalization on Agricultural Credit for Green Economy and Sustainable Development

Author

Listed:
  • Rachna Madaan

    (IILM University, Gurugram 122001, Haryana, India)

  • Rajesh Kumar

    (IILM University, Gurugram 122001, Haryana, India)

Abstract

The prime objective of this paper is to analyze the impact of the level of digitalization on the volume of agricultural credit, viewed as a vital economic instrument contributing to the green economy and sustainable development, over the period from 2010 to 2020 in India. A broad review of past literature identifies the determinants of digitalization and agricultural credit. A sample survey is directed to examine the use of smartphones/internet by farmers for agricultural activities. The secondary data published by RBI for agricultural credit and TRAI for the number of mobile phones, smartphones and internet users is converted into an annual time series. The Augmented-Dickey-Fuller test is applied to confirm the stationarity behaviour of the time series. The results of the bivariate regression specify a significant positive correlation between digitalization and agricultural credit in India. The R2 value confirms that mobile phones, smartphones and internet users explain 80, 85 and 90 percent variation in the volume of agricultural credit. The use of smartphones/internet has emerged as a crucial factor in facilitating agricultural credit, thus promoting the green economy and augmenting the economic welfare of farmers, contributing to sustainable development.

Suggested Citation

  • Rachna Madaan & Rajesh Kumar, 2024. "Influence of Digitalization on Agricultural Credit for Green Economy and Sustainable Development," Acta Universitatis Bohemiae Meridionalis, University of South Bohemia in Ceske Budejovice, Faculty of Economics, vol. 27(3), pages 1-16.
    • Handle: RePEc:boh:actaub:v:27:y:2024:i:3:p:1-16
    DOI: 10.32725/acta.2024.009
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    References listed on IDEAS

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    1. Sarfo, Yaw & Musshoff, Oliver & Weber, Ron & Danne, Michael, 2021. "Farmers’ Willingness to Pay for Digital Credit: Evidence from a Discrete Choice Experiment in Madagascar," 2021 Conference, August 17-31, 2021, Virtual 315029, International Association of Agricultural Economists.
    2. Sarfo, Yaw & Musshoff, Oliver & Weber, Ron & Danne, Michael, "undated". "Farmers’ willingness to pay for digital and conventional credit: Evidence from a discrete choice experiment in Madagascar," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317074, German Association of Agricultural Economists (GEWISOLA).
    3. Sidhu, R.S. & Gill, Sucha Singh, 2006. "Agricultural Credit and Indebtedness in India: Some Issues," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(01), pages 1-25.
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    5. Yaw Sarfo & Oliver Musshoff & Ron Weber & Michael Danne, 2021. "Farmers’ willingness to pay for digital and conventional credit: Insight from a discrete choice experiment in Madagascar," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-23, November.
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    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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