 |
| |
|
Title of Thesis
Constraint’s Analysis Of Agricultural Credit Use Implications For
Poverty Reduction In Pakistan |
|
Author(s)
Waqar Akram |
Institute/University/Department
Details
Department Of Economics / University Of Sargodha,
Sargodha |
Session
2008 |
Subject
Economics |
Number of Pages
145 |
Keywords (Extracted from title, table of contents and
abstract of thesis)
Constraint, Agricultura, Poverty, Reduction, Credit, Household, Consumption,
Facilitator, Irrigation, Literacy, Predicted, Borrowers, Adequate,
Dissemination |
|
Abstract
The study analyzed
the constraints faced by the farmers to rural credit by utilizing
two household level data sets. The first survey Pakistan Rural
Household Survey (PRHS) 2001 was utilized to study the purpose,
source structure and utilization of rural credit and; the second
which covered nearly 160 households from Sargodha District 2007 was
used to calculate the demand and interest rate function by applying
Heckman two stage procedures. The focus of this study was to find
out the affect of credit constraints of institutional credit on
consumption and production pattern of the rural farm households.
After measuring the probability of being constrained used to study
affect on consumption pattern of farmers who were credit constraint.
The frontier production function was used to study the affect of
credit constrained and un-constrained farmers.
The analysis revealed that agricultural production loan was found as
45.8 percent. ZTBL was providing most of the loan to the farmers for
their agricultural needs. The interest was ranging between 10 to 20
percent in all agro-climatic regions. The logit model was applied to
determine the nominal interest rate and borrowing function of the
farmers. The results showed that the transitory income, predicted
interest rate, and farm size were significant. Credit constraints
were determined by using Heckman’s two stage procedure. The results
showed that the coefficient of education of male household was
significant showing that education function as a facilitator to
enter into credit market. The farmers faced many constraints namely:
lower literacy rate, small and fragmented holdings, uneven access to
agricultural extension and information and in ability to obtain
adequate irrigation water, less access to agriculture credit
institutions, and inequitable distribution of land and water. The
results of the frontier production revealed that credit users and
non credit users were allocatively inefficient,especially irrigation
water. The mean technical efficiency of credit users was 90 and that
of non-credit users was 79 percent, respectively. The high technical
efficiency of credit users was attributed to better market access to
the farmers to new technology through the availability of
agricultural credit. The low level of technical efficiency of
non-credit users as compared to credit users implied that potential
for improvement exists. The high technical efficiency of credit
users was safely attributed to credit availability through which
farmers have an access to new technology. With respect to policy
implication, the study suggested that development and dissemination
of low cost and site-specific production technologies for the
farmers. In this regard formation of Credit Assessment Bureaus for
the risk assessment of the borrowers as it done in urban
areas.Better dissemination of information and technology for
improved decision making regarding use of credit.
|
|
