Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan

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.

Abstract

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
• Language: English
• 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

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