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The Impact of credit constraints on the adoption of hybrid maize in Malawi

  • Simtowe, Franklin
  • Zeller, Manfred
  • Diagne, Aliou

The paper investigates the impact of credit constraints on the adoption of hybrid maize among rural households in Malawi using the treatment-effects model. Results reveal that after effectively correcting for endogeneity, credit constraints have a reducing effect on the size of land allocated to hybrid maize. Farmers with larger land holdings allocate more land to hybrid maize while older farmers allocate less land to hybrid maize. These findings suggest that there is scope for increasing the cultivation of hybrid maize in Malawi if credit is targeted at younger farmers that are credit-constrained.

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File URL: http://purl.umn.edu/51627
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Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51627.

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Date of creation: 28 Jun 2009
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Handle: RePEc:ags:iaae09:51627
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
  2. Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-46, April.
  3. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  4. Diagne, Aliou & Zeller, Manfred & Sharma, Manohar, 2000. "Empirical measurements of households' access to credit and credit constraints in developing countries," FCND discussion papers 90, International Food Policy Research Institute (IFPRI).
  5. Zeller, Manfred & Diagne, Aliou & Mataya, Charles, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
  6. Yasuyuki SAWADA & Kensuke KUBO & Nobuhiko FUWA & Seiro ITO & Takashi KUROSAKI, 2006. "On The Mother And Child Labor Nexus Under Credit Constraints: Findings From Rural India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 465-499.
  7. Zeller, Manfred & Diagne, Aliou & Mataya, Charles, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, Blackwell, vol. 19(1-2), pages 219-229, September.
  8. repec:cdl:agrebk:836256 is not listed on IDEAS
  9. Eswaran, Mukesh & Kotwal, Ashok, 1990. "Implications of Credit Constraints for Risk Behaviour in Less Developed Economies," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 473-82, April.
  10. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).
  11. Zilberman, David & Just, Richard E. & Rausser, Gordon C., 1981. "The distributional effects of new technology under risk," CUDARE Working Paper Series 100R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  12. Smale, Melinda, 1995. ""Maize is life": Malawi's delayed Green Revolution," World Development, Elsevier, vol. 23(5), pages 819-831, May.
  13. Smale, Melinda & Phiri, Alexander, 1998. "Institutional Change and Discontinuities in Farmers' Use of Hybrid Maize Seed and Fertilizer in Malawi: Findings from the 1996-97 CIMMYT/ MoALD Survey," Economics Working Papers 7674, CIMMYT: International Maize and Wheat Improvement Center.
  14. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  15. Jappelli, Tullio, 1990. "Who Is Credit Constrained in the U.S. Economy?," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 219-34, February.
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