IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i3d10.1007_s13132-024-02385-y.html
   My bibliography  Save this article

Hesitant Fuzzy Entropy Analysis of Financial Literacy and Micro-credit Accessibility of Pakistani Farmers: A Bankers’ Perspective

Author

Listed:
  • Ali Raza

    (Northeast Forestry University)

  • Umair Kashif

    (Fuzhou University)

  • Tamar Papiashvili

    (Northeast Forestry University)

  • Vasilii Erokhin

    (Harbin Engineering University)

  • Ahmad A. A. Fadol

    (Northeast Forestry University)

Abstract

This research explores the intricate relationship between financial literacy and micro-credit accessibility for Pakistani farmers, utilizing the specialized analytical approach of hesitant fuzzy entropy (HFE) analysis. This methodological convergence has the potential to transform the lives of farmers, but understanding its dynamics and influential factors poses a complex challenge. The HFE analysis provides a quantitative method for navigating uncertainty in multi-criteria decision-making, offering a systematic framework to evaluate diverse factors while accommodating real-world ambiguity. Hesitant fuzzy entropy values quantify variable importance, directly influencing farmers’ economic well-being. The dataset used in this study includes 39 variables that cover various aspects of financial literacy and microcredit accessibility. The results of the logistic regression analysis show that the education level of farmers is a significant determinant at the 1% level, challenging traditional beliefs. Age has a negative effect on financial literacy at the 10% significance level, providing a new perspective on the relationship between age and financial knowledge. The logistic regression model that assesses factors influencing microcredit accessibility has a strong likelihood ratio of 186.39 and a pseudo-R2 of 56.92%. The significance level (P-value) is 0.000, indicating strong statistical significance. Notably, the probability of accessing microcredit for key variables was quantified: financial education experience has a probability of 35.99%, annual income has a significant impact with a probability of 36.67%, and the requested loan amount influences access with a probability of 16%. This comprehensive analysis contributes to the growing body of literature on financial inclusion, providing valuable insights for policymakers and practitioners.

Suggested Citation

  • Ali Raza & Umair Kashif & Tamar Papiashvili & Vasilii Erokhin & Ahmad A. A. Fadol, 2025. "Hesitant Fuzzy Entropy Analysis of Financial Literacy and Micro-credit Accessibility of Pakistani Farmers: A Bankers’ Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12727-12763, September.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02385-y
    DOI: 10.1007/s13132-024-02385-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-02385-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-02385-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Abbas Ali Chandio & Yuansheng Jiang & Feng Wei & Abdul Rehman & Dan Liu, 2017. "Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1369383-136, January.
    2. Hussain, Syed Sajidin & Mudasser, Muhammad, 2007. "Prospects for wheat production under changing climate in mountain areas of Pakistan - An econometric analysis," Agricultural Systems, Elsevier, vol. 94(2), pages 494-501, May.
    3. Klapper, Leora & Lusardi, Annamaria & Panos, Georgios A., 2012. "Financial literacy and the financial crisis," Policy Research Working Paper Series 5980, The World Bank.
    4. Annamaria Lusardi, 2008. "Household Saving Behavior: The Role of Financial Literacy, Information, and Financial Education Programs," NBER Working Papers 13824, National Bureau of Economic Research, Inc.
    5. Andros, Svitlana & Gerasymchuk, Vasyl, . "Development Trends of the Market of Agricultural Lending to Households in Ukraine: Analysis of Consumer and Mortgage Loans," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(2).
    6. Badu-Prah, Charlotte & Agyeiwaa-Afrane, Akua & Gidiglo, Ferguson K. & Srofenyoh, Francis Y. & Agyei-Henaku, Kofi Aaron A-O. & Djokoto, Justice Gameli, . "Trade, Foreign Direct Investment and Agriculture in Developing Countries," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(3).
    7. Min Wan & Haibo Kuang & Yanbo Yang & Bi He & Sue Zhao & Ying Wang & Jingyi Huo, 2023. "Evaluation of Agricultural Green Development Based on Gini Coefficient and Hesitation Fuzzy Multi-Attribute Decision-Making: The Case of China," Agriculture, MDPI, vol. 13(3), pages 1-15, March.
    8. Iqbal, Sana & Nawaz, Ahmad & Ehsan, Sadaf, 2019. "Financial performance and corporate governance in microfinance: Evidence from Asia," Journal of Asian Economics, Elsevier, vol. 60(C), pages 1-13.
    9. Shehla Amjad & SAF Hasnu, 2007. "Smallholders’ Access to Rural Credit: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 1-25, Jul-Dec.
    10. Karaivanov, Alexander & Kessler, Anke, 2018. "(Dis)advantages of informal loans – Theory and evidence," European Economic Review, Elsevier, vol. 102(C), pages 100-128.
    11. KHAN FAWAD ZAFAR AHMAD & Sagheer Muhammad & Hasan Mansoor Ul & Gul Hafiza Tahira & Hassan Feehan & Manzoor Syed Amir & Wahid Atif, 2013. "Agricultural dynamics in Pakistan: current issues and solutions," Russian Journal of Agricultural and Socio-Economic Sciences, CyberLeninka;Редакция журнала Russian Journal of Agricultural and Socio-Economic Sciences, vol. 20(8), pages 20-26.
    12. Akram, Waqar & Hussain, Zakir, 2008. "Agricultural credit constraints and borrowing behavior of farmers in rural Punjab," MPRA Paper 31531, University Library of Munich, Germany.
    13. Raza, Muhammad Yousaf & Wu, Rongxin & Lin, Boqiang, 2023. "A decoupling process of Pakistan's agriculture sector: Insights from energy and economic perspectives," Energy, Elsevier, vol. 263(PC).
    14. Furqan Sikandar & Vasilii Erokhin & Li Xin & Marina Sidorova & Anna Ivolga & Alexey Bobryshev, 2022. "Sustainable Agriculture and Rural Poverty Eradication in Pakistan: The Role of Foreign Aid and Government Policies," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    15. repec:lje:journl:v:2:y:2007:i:2:p:1-25 is not listed on IDEAS
    16. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rehman, 2018. "Credit margin of investment in the agricultural sector and credit fungibility: the case of smallholders of district Shikarpur, Sindh, Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-10, December.
    17. Ullah, Ayat & Arshad, Muhammad & Kächele, Harald & Zeb, Alam & Mahmood, Nasir & Müller, Klaus, 2020. "Socio-economic analysis of farmers facing asymmetric information in inputs markets: evidence from the rainfed zone of Pakistan," Technology in Society, Elsevier, vol. 63(C).
    18. Elahi, Ehsan & Abid, Muhammad & Zhang, Liqin & ul Haq, Shams & Sahito, Jam Ghulam Murtaza, 2018. "Agricultural advisory and financial services; farm level access, outreach and impact in a mixed cropping district of Punjab, Pakistan," Land Use Policy, Elsevier, vol. 71(C), pages 249-260.
    19. Kumar, Prabhakar & Handral, Ankhila R. & Monda, Biswajit & Yadav, R. K. & Anbukkani, P., . "Economics of Pulse Production in Bundelkhand Region of Uttar Pradesh, India: An Empirical Analysis," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 3(3).
    20. Ali Raza & Guangji Tong & Furqan Sikandar & Vasilii Erokhin & Zhang Tong, 2023. "Financial Literacy and Credit Accessibility of Rice Farmers in Pakistan: Analysis for Central Punjab and Khyber Pakhtunkhwa Regions," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    21. Alex Winter-Nelson & Anna A. Temu, 2005. "Liquidity constraints, access to credit and pro-poor growth in rural Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 867-882.
    22. Iqbal, Shahid & Wang, Ying & Ali, Sharafat & Haider, Muhammad Afaq & Amin, Nabila, 2023. "Shifting to a green economy: Asymmetric macroeconomic determinants of renewable energy production in Pakistan," Renewable Energy, Elsevier, vol. 202(C), pages 234-241.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Raza & Guangji Tong & Furqan Sikandar & Vasilii Erokhin & Zhang Tong, 2023. "Financial Literacy and Credit Accessibility of Rice Farmers in Pakistan: Analysis for Central Punjab and Khyber Pakhtunkhwa Regions," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    2. Ayat Ullah & Nasir Mahmood & Alam Zeb & Harald Kächele, 2020. "Factors Determining Farmers’ Access to and Sources of Credit: Evidence from the Rain-Fed Zone of Pakistan," Agriculture, MDPI, vol. 10(12), pages 1-13, November.
    3. Chitralada Chaiya & Sikandar Sikandar & Pichate Pinthong & Shahab E. Saqib & Niaz Ali, 2023. "The Impact of Formal Agricultural Credit on Farm Productivity and Its Utilization in Khyber Pakhtunkhwa, Pakistan," Sustainability, MDPI, vol. 15(2), pages 1-14, January.
    4. Masaood Moahid & Ghulam Dastgir Khan & Yuichiro Yoshida & Niraj Prakash Joshi & Keshav Lall Maharjan, 2021. "Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    5. Iman Widhiyanto & Nunung Nuryartono & Harianto Harianto & Hermanto Siregar, 2018. "The Analysis of Farmers' Financial Literacy and its' Impact on Microcredit Accessibility with Interest Subsidy on Agricultural Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 148-159.
    6. Abbas Ali Chandio & Yuansheng Jiang & Feng Wei & Abdul Rehman & Dan Liu, 2017. "Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1369383-136, January.
    7. Tamar Papiashvili & Jie Shang & Ali Raza & Vasilii Erokhin, 2025. "Hyper-industrialization of China’s Agricultural Sector: Effects of Administration, Logistics, and Trade Integration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 389-411, March.
    8. Katharina Allinger & Elisabeth Beckmann, 2021. "Prevalence and determinants of nonbank borrowing in CESEE: evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/21, pages 7-35.
    9. Nomonde Jonas & Mzuyanda Christian & Sifiso Ntombela & Simon Letsoalo, 2025. "Empowering South African Smallholder Farmers: Integrating Climate Resilience into Credit Assessment," Sustainability, MDPI, vol. 17(1), pages 1-19, January.
    10. Punlork Men & Lyda Hok & Panchit Seeniang & B. Jan Middendorf & Rapee Dokmaithes, 2024. "Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia," Agriculture, MDPI, vol. 14(6), pages 1-26, June.
    11. Chengmin Li & Haoyu Deng & Guoxin Yu & Rong Kong & Jian Liu, 2024. "Impact Effects of Cooperative Participation on the Adoption Behavior of Green Production Technologies by Cotton Farmers and the Driving Mechanisms," Agriculture, MDPI, vol. 14(2), pages 1-25, January.
    12. Danuta Zawadzka & Agnieszka Strzelecka & Ewa Szafraniec-Siluta, 2021. "Debt as a Source of Financial Energy of the Farm—What Causes the Use of External Capital in Financing Agricultural Activity? A Model Approach," Energies, MDPI, vol. 14(14), pages 1-17, July.
    13. Shahzad Ali & Tahreem Ejaz & Ali Sajjad & Rimsha Fiaz, 2025. "Financial inclusion and renewable energy in the face of extreme weather conditions: a CS-ARDL analysis of agricultural production in ASEAN-5," Economic Change and Restructuring, Springer, vol. 58(3), pages 1-23, June.
    14. Rashid Latief & Lei Zhang, 2024. "Nexus between government agricultural expenditures and agricultural credit: The role of sustainable agricultural growth and sustainable agricultural income," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3344-3355, August.
    15. Paul Hallwood & Ronald MacDonald, 2014. "Picking The Right Budget Constraint For Scotland," Working Papers 2014_18, Business School - Economics, University of Glasgow.
    16. Huihui Li & Yibing Ding & Fan Bie & Muhammad Shahbaz & Vasilii Erokhin, 2025. "Digital Economy, Foreign Direct Investment, and Environmental Pollution: Empirical Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10421-10451, June.
    17. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rehman, 2018. "Credit margin of investment in the agricultural sector and credit fungibility: the case of smallholders of district Shikarpur, Sindh, Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-10, December.
    18. Ali Raza & Guangji Tong & Vasilii Erokhin & Alexey Bobryshev & Lyubov Chaykovskaya & Natalya Malinovskaya, 2023. "Sustaining Performance of Wheat–Rice Farms in Pakistan: The Effects of Financial Literacy and Financial Inclusion," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    19. Tullio Jappelli, 2010. "Economic Literacy: An International Comparison," Economic Journal, Royal Economic Society, vol. 120(548), pages 429-451, November.
    20. Jeetendra Prakash Aryal & Tek B. Sapkota & Ritika Khurana & Arun Khatri-Chhetri & Dil Bahadur Rahut & M. L. Jat, 2020. "Climate change and agriculture in South Asia: adaptation options in smallholder production systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5045-5075, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02385-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.