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The Productivity of Agricultural Credit in India

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  • Sudha Narayanan

Abstract

This study examines the nature of the relationship between formal agricultural credit and agricultural GDP in India, specifically the role of the former in supporting agricultural growth, using state level panel data covering the period 1995-96 to 2011-12. The study uses a mediation analysis framework to map the pathways through which institutional credit relates to agricultural GDP relying on a control function approach to tackle the problem of endogeneity.

Suggested Citation

  • Sudha Narayanan, 2015. "The Productivity of Agricultural Credit in India," Working Papers id:6428, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:6428
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Rada, Nicholas E., 2013. "Agricultural Growth in India: Examining the Post-Green Revolution Transition," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149547, Agricultural and Applied Economics Association.
    2. Shawn Cole, 2009. "Fixing Market Failures or Fixing Elections? Agricultural Credit in India," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 219-250, January.
    3. Hans Binswanger & Shahidur Khandker, 1995. "The impact of formal finance on the rural economy of India," Journal of Development Studies, Taylor & Francis Journals, vol. 32(2), pages 234-262.
    4. Unknown, 2013. "SAEA 2013 Annual Meetings," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-1, August.
    5. Sriram M S, 2007. "Productivity of Rural Credit: A Review of Issues and Some Recent Literature," IIMA Working Papers WP2007-06-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Kanz, Martin, 2012. "What does debt relief do for development ? evidence from India's bailout program for highly-indebted rural households," Policy Research Working Paper Series 6258, The World Bank.
    7. Duvvuri Subbarao, 2012. "Agricultural Credit - Accomplishments and Challenges," Working Papers id:5082, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    productivity; agricultural credit; India; institutional GDP; India; growth; data;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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