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Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam

Author

Listed:
  • Stampini, Marco

    (Inter-American Development Bank)

  • Davis, Benjamin

    (Food and Agriculture Organization of the United Nations)

Abstract

We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non-agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.

Suggested Citation

  • Stampini, Marco & Davis, Benjamin, 2008. "Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam," IZA Discussion Papers 3403, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3403
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    More about this item

    Keywords

    credit constraints; linkages; rural labor markets; Vietnam;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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