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Impact of Access to Credit on Farm Productivity of Fruit and Vegetable Growers in Chile

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  • Reyes, Alvaro
  • Lensink, Robert
  • Kuyvenhoven, Arie
  • Moll, Henk

Abstract

The objective of this paper is to analyze the factors that determine productivity of fruit and vegetable growers in central Chile, focusing especially on the effect of short-term credit on farm productivity for market-oriented farmers. We explicitly test for possible selection bias using a panel data set from a survey conducted in 2006 and 2008 with 177 farmers. Our results indicate that short-term credit does not have an impact on farm productivity, while other factors as education and the type of activity do. These results suggest that other providers of credit, such as informal credit institutions, may relax short-term credit constraints in rural financial markets in Chile.

Suggested Citation

  • Reyes, Alvaro & Lensink, Robert & Kuyvenhoven, Arie & Moll, Henk, 2012. "Impact of Access to Credit on Farm Productivity of Fruit and Vegetable Growers in Chile," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126217, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126217
    DOI: 10.22004/ag.econ.126217
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    Cited by:

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    2. Wainaina, P. & Njagi, T. & Onyango, K., 2018. "Credit constraints, off-farm participation and productivity; case of Kenyan rural sector," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277050, International Association of Agricultural Economists.
    3. Muhammed Ahmed Ibrahim & Abubakar Adamu Magaji & Fatima Muhammad Abdulkarim & Salisu Yahuza, 2020. "Mediating Influence of Islamic Microfinance on agricultural Antecedents and Agribusiness Performance in Jigawa state, Nigeria," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 6(4(56)), pages 35-40.
    4. Uchenna Obih & Lloyd Baiyegunhi, 2018. "Financing Smallholder Rice Farmers: A Field-Based Evidence Review of Anchor Borrowers’ Programme (ABP) Model in Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 229-239.
    5. 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.
    6. Ollo Dah & Toussaint Boubié Bassolet, 2021. "Agricultural infrastructure public financing towards rural poverty alleviation: evidence from West African Economic and Monetary Union (WAEMU) States," SN Business & Economics, Springer, vol. 1(2), pages 1-20, February.
    7. Evans Sumabe Batung & Kamaldeen Mohammed & Moses Mosonsieyiri Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2023. "Credit access and perceived climate change resilience of smallholder farmers in semi-arid northern Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 321-350, January.
    8. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Agricultural and Food Policy; Financial Economics; Productivity Analysis;
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