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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. 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.
  2. Tullio Jappelli, 1990. "Who is Credit Constrained in the U. S. Economy?," The Quarterly Journal of Economics, Oxford University Press, vol. 105(1), pages 219-234.
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