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Assessment of rural credit impact on land and labor productivity for Brazilian family farmers [Assessment of rural credit impact on land and labor productivity for Brazilian family farmers]

Author

Listed:
  • Marcos de Oliveira Garcias

    (UNILA)

  • Ana Lucia Kassouf

    (USP)

Abstract

The objective of this study was to evaluate the impact of rural credit on land and labor productivity for Brazilian family farmers and assess factors influencing the rural credit approval process. The study employs data contained in the 2006 Brazilian Municipality1 Agricultural Census and a “trade index” (TI) specifically constructed to differentiate family farmers. The impact of credit on land and labor productivity was calculated by comparing the productivity of a group of family farmers that received credit with the productivity of a group of family farmers that were credit restricted. The groups were constructed with the aid of propensity score matching. When statistically significant, the average effect of credit was found to increase the recipient’s productivity of land and labor. It was also found that productivity increases due to the use of credit aligned with the level of the family farmer’s integration into the commercial market and, therefore, one credit policy does not fit for all Brazilian family farmers.

Suggested Citation

  • Marcos de Oliveira Garcias & Ana Lucia Kassouf, 2016. "Assessment of rural credit impact on land and labor productivity for Brazilian family farmers [Assessment of rural credit impact on land and labor productivity for Brazilian family farmers]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 26(3), pages 721-746, September.
    • Handle: RePEc:nov:artigo:v:26:y:2016:i:3:p:721-746
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    References listed on IDEAS

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    1. Rodrigo A. Chaves & Susana Sanchez & Saul Schor & Emil Tesliuc, 2001. "Financial Markets, Credit Constraints, and Investment in Rural Romania," World Bank Publications - Books, The World Bank Group, number 13893, December.
    2. Fernando de Mendonça Dias & André Matos Magalhães & Raul Silveira Neto & Alexandre Rands Barros, 2004. "A Experiência Recente Do Pronaf Em Pernambuco: Uma Análise Através De Propensity Score," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 108, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Chaves, R.A. & Sanchez, S. & Schor, S. & Tesliuc, E., 2001. "Financial Markets, Credit Constraints, and Investment in Rural Romania," Papers 499, World Bank - Technical Papers.
    4. Alexandre Manoel Angelo da Silva & Guilherme Mendes Resende & Raul da Mota Silveira Neto, 2007. "Eficácia do Gasto Público: Uma Avaliação do FNE, FNO e FCO," Discussion Papers 1259, Instituto de Pesquisa Econômica Aplicada - IPEA.
    5. Assunção, Juliano Junqueira & Alves, Luciana Sampaio, 2007. "Restrições de Crédito e Decisões Intra-Familiares," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 61(2), November.
    6. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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    Cited by:

    1. Ghinoi, S. & Piras, S. & Wesz, V.J.J., 2018. "Political debates and agricultural financing policies. Evaluating the crea-tion of Brazil s Pronaf through Discourse Network Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277274, International Association of Agricultural Economists.
    2. Berchin, Issa Ibrahim & Nunes, Nei Antonio & de Amorim, Wellyngton Silva & Alves Zimmer, Gabriel Alfredo & da Silva, Franciani Rodrigues & Fornasari, Vitória Haendchen & Sima, Mihaela & de Andrade Gue, 2019. "The contributions of public policies for strengthening family farming and increasing food security: The case of Brazil," Land Use Policy, Elsevier, vol. 82(C), pages 573-584.
    3. Ghinoi, Stefano & Wesz Junior, Valdemar João & Piras, Simone, 2018. "Political debates and agricultural policies: Discourse coalitions behind the creation of Brazil’s Pronaf," Land Use Policy, Elsevier, vol. 76(C), pages 68-80.

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    More about this item

    Keywords

    family farming; trade index; rural credit; propensity score matching;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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