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The effects of a fertilizer loan on dry-season rice cultivated areas in Laos

  • Phinseng Channgakham


    (International Graduate School of Social Sciences, Yokohama National University)

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    This study estimates the effects of agricultural credit, especially a fertilizer loan, by utilizing original survey data collected before and after the policy change. We apply the fixed-effects method to account for the endogeneity that occurs when the farmer-specific unobserved heterogeneity correlates with the amount of loan. The result indicates that the quantitative effects of a fertilizer loan on dry-season rice cultivated areas (DRCAs) are small. This suggests that the elimination of the fertilizer loan may have little effect on DRCAs.

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    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 15 (2006)
    Issue (Month): 12 ()
    Pages: 1-8

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    Handle: RePEc:ebl:ecbull:eb-06o10008
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    1. 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.
    2. Bao Duong, Pham & Izumida, Yoichi, 2002. "Rural Development Finance in Vietnam: A Microeconometric Analysis of Household Surveys," World Development, Elsevier, vol. 30(2), pages 319-335, February.
    3. Khandker, Shahidur R. & Faruqee, Rashid R., 2003. "The impact of farm credit in Pakistan," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(3), May.
    4. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng, Luo, 1989. "Agricultural credit and farm performance in China," Journal of Comparative Economics, Elsevier, vol. 13(4), pages 508-526, December.
    5. Carter, Michael R., 1988. "Equilibrium credit rationing of small farm agriculture," Journal of Development Economics, Elsevier, vol. 28(1), pages 83-103, February.
    6. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
    7. Gershon Feder & Lawrence J. Lau & Justin Y. Lin & Xiaopeng Luo, 1990. "The Relationship between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1151-1157.
    8. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
    9. Boucher, Stephen R. & Guirkinger, Catherine & Trivelli, Carolina, 2005. "Direct elicitation of credit constraints: Conceptual and practical issues with an empirical application," 2005 Annual meeting, July 24-27, Providence, RI 19272, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
    11. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
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