Sial, Maqbool Hussain and Awan, Masood Sarwar and Waqas, Muhammad (2011): Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan. Published in: International Journal of Economics and Finance , Vol. 3, No. 2 (2011): pp. 126-132.
Download (254Kb) | Preview
In our predominant and cash-strapped agrarian sector, adequate credit provision is a definite buttress to implant technological advancements, achieve technical efficiency and hire efficient inputs to uplift agriculture output/income collectively and eradicate poverty eventually. In the midst of beleaguered informal credit sector and recent spurt in banking services in last decade diverted the attention to envisage the formal sector’s optimum potential. In this backdrop, this study is going to explore the role of institutional credit in agricultural production using the time series data for the period of 1972 to 2008. Cobb-Douglas production function is estimated using OLS and all the variables are transformed to per cultivated hectare. Results show that agricultural credit, availability of water, cropping intensity and agricultural labor force are positively significantly related to agricultural production.
|Item Type:||MPRA Paper|
|Original Title:||Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan|
|Keywords:||Agricultural Credit, Time series analysis, Pakistan|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Muhammad Waqas|
|Date Deposited:||24. Jun 2011 13:51|
|Last Modified:||14. Feb 2013 11:39|
Agricultural Development Bank of Pakistan. Agricultural Credit Indicators, Islamabad: Central Information Department, MIS Division.
Agricultural Statistics of Pakistan. (2004-05). Islamabad: Economic Wing, Ministry of Food, Agriculture and Livestock.
Banerjee, A. (2001). Contracting constraints, credit markets and economic development. Massachusetts Institute of Technology, Department of Economics. Working Paper Series, 02-17.
Carter, M.R. (1989). The Impact Of Credit on Peasant Productivity and Differentiation in Nicaragua. Journal of Development Economics 31, 13-36.
Duca, J. V. and Rosenthal, H. H. (1993). Borrowing constraints, household debt, and racial discrimination in loan markets, Journal of Financial Intermediation 3, 77-103.
Economic Survey of Pakistan 2003-04, 2008-09. Islamabad: Economic Advisor’s Wing, Finance Division.
Emana, B., Gemtessa, K., Lemessa, D. & Ayele, G. (2005). Informal finance in Ethiopia. Occasional Paper No. 13. Association of Ethiopian Microfinance Institutions, Addis Ababa, Ethiopia
Guirkinger, C. and Boucher, S. (2005). Credit constraints and productivity in Peruvian agriculture, Department of Agricultural and Resource Economics, University of California – Davis, Mimeo.
Handbook on Best Practices in Agri/Rural Finance (2009). Agricultural Credit Department. State Bank of Pakistan
Ibrahim G, Kedir A and Sebastián Torres. (2007). Household-level Credit Constraints in Urban Ethiopia: working paper No.07/03 Department of Economics, School of Oriental and African Studies, University of London, Nottingham Business School, Nottingham Trent University, UK.
Iqbal, Muhammad, Ahamad, Munir and Abbas, Kalbe. (2003). The Impact of Institutional Credit on Agricultural Production in Pakistan. The Pakistan Development Review 42(2), 469-485.
Nuryartono N, Zeller M. and Stefan Schwarze. (2005). Credit Rationing of Farm Households and Agricultural production: Empirical Evidence in the Rural Areas of Central Sulawesi, Indonesia. Conference on International Agricultural Research for Development Stuttgart-Hohenheim, October 11-13, 2005.
Qureshi, Sarfraz Khan and Akhtiar H. Shah. (1992). A Critical Review of Rural Credit Policy in Pakistan. The Pakistan Development Review 31(4), 781-801.
Sial, M. H. and Carter, M. R. (1996). Financial Market Efficiency in an Agrarian Economy: Microeconometric Analysis of the Pakistani Punjab. The Journal of Development Studied 32(5), 771-798.
Stiglitz, J. E. and Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review 71(3), 393-410.
Yusuf, Muhammad. (1984). In Farm Credit Situation in Asia. Tokyo: Asian Productivity Organization. 455-494.
Zuberi, Habib A. (1989). Production Function, Institutional Credit and Agricultural Development in Pakistan. The Pakistan Development Review. 28(1), 43-56.