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The Impact of Institutional Credit on Agricultural Production in Pakistan

  • Muhammad Iqbal

    (Pakistan Institute of Development Economics, Islamabad.)

  • Munir Ahmad

    (Pakistan Institute of Development Economics, Islamabad.)

  • Kalbe Abbas

    (Pakistan Institute of Development Economics, Islamabad.)

Three main factors that contribute to agricultural growth are the increased use of agricultural inputs, technological change and technical efficiency. Technological change is the result of research and development efforts, while technical efficiency with which new technology is adopted and used more rationally is affected by the flow of information, better infrastructure, availability of funds and farmers’ managerial capabilities. Higher use and better mix of inputs also requires funds at the disposal of farmers. These funds could come either from farmers’ own savings or through borrowings. In less developed countries like Pakistan where savings are negligible especially among the small farmers, agricultural credit appears to be an essential input along with modern technology for higher productivity.

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File URL: http://www.pide.org.pk/pdf/PDR/2003/Volume4/469-485.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 42 (2003)
Issue (Month): 4 ()
Pages: 469-485

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Handle: RePEc:pid:journl:v:42:y:2003:i:4:p:469-485
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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. Sarfraz Khan Qureshi & Akhtiar H. Shah, 1992. "A Critical Review of Rural Credit Policy in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 781-801.
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