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The Impact of Farmers' Borrowing Behavior on Agricultural Production Technical Efficiency

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  • Hambur Wang

Abstract

The effectiveness of farmer loan policies is crucial for the high-quality development of agriculture and the orderly advancement of the rural revitalization strategy. Exploring the impact of farmers' borrowing behavior on agricultural production technical efficiency holds significant practical value. This paper utilizes data from the 2020 China Family Panel Studies (CFPS) and applies Stochastic Frontier Analysis (SFA) along with the Tobit model for empirical analysis. The study finds that farmers' borrowing behavior positively influences agricultural production technical efficiency, with this effect being especially pronounced among low-income farmers. Additionally, the paper further examines household characteristics, such as household head age, gender, educational level, and the proportion of women in the family, in relation to agricultural production technical efficiency. The findings provide policy recommendations for optimizing rural financial service systems and enhancing agricultural production technical efficiency.

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  • Hambur Wang, 2024. "The Impact of Farmers' Borrowing Behavior on Agricultural Production Technical Efficiency," Papers 2411.00500, arXiv.org.
    • Handle: RePEc:arx:papers:2411.00500
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    1. Nickell, Stephen & Nicolitsas, Daphne, 1999. "How does financial pressure affect firms?," European Economic Review, Elsevier, vol. 43(8), pages 1435-1456, August.
    2. Rui-Feng Wang & Wen-Hao Su, 2024. "The Application of Deep Learning in the Whole Potato Production Chain: A Comprehensive Review," Agriculture, MDPI, vol. 14(8), pages 1-30, July.
    3. Gatti, Roberta & Love, Inessa, 2006. "Does access to credit improve productivity ? Evidence from Bulgarian firms," Policy Research Working Paper Series 3921, The World Bank.
    4. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    5. Roberta Gatti & Inessa Love, 2008. "Does access to credit improve productivity? Evidence from Bulgaria1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 445-465, July.
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    1. Oyeyode Tohib Obalola & Abiodun Elijah Obayelu & Adeleke Sabitu Coster & Cornelius Idowu Alarima, 2025. "Comparing Cobb–Douglas and translog stochastic frontier models for estimating technical efficiency in rice farming in Northwestern Nigeria," SN Business & Economics, Springer, vol. 5(6), pages 1-23, June.

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