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Agricultural Borrowing by Rural Households: Evidences from Hills and Terai Regions of Nepal


  • Sushil Ram Mathema

    (Nepal Rastra Bank)


In the present study, a borrowing function has been estimated in order to identify the relevant factors affecting the borrowings of the farm families living under different topographical conditions. The major determinants of the agricultural borrowing are found to be capital expenditure, family expenditure and value of assets. The study, as discussed later, revealed that the total variation in the magnitude of borrowed amount due to unit change in capital expenditure and family expenditure is remarkably different between Khopasi (Hills) and Anandaban (Terai).

Suggested Citation

  • Sushil Ram Mathema, 1988. "Agricultural Borrowing by Rural Households: Evidences from Hills and Terai Regions of Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 2, pages 25-44, April.
  • Handle: RePEc:nrb:journl:v:2:y:1988:p:25-44

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