Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania
Credit constraint is considered by many as one of the key barriers to adoption of modern agricultural technologies, such as chemical fertilizer, improved seeds, and irrigation technologies, among smallholders. Past research and much policy discourse associates agricultural credit constraints with su...
| Autores principales: | , , , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/110680 |
| _version_ | 1855535477189246976 |
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| author | Balana, Bedru Mekonnen, Dawit Kelemework Haile, B. Hagos, Fitsum Yimam, S. Ringler, Claudia |
| author_browse | Balana, Bedru Hagos, Fitsum Haile, B. Mekonnen, Dawit Kelemework Ringler, Claudia Yimam, S. |
| author_facet | Balana, Bedru Mekonnen, Dawit Kelemework Haile, B. Hagos, Fitsum Yimam, S. Ringler, Claudia |
| author_sort | Balana, Bedru |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Credit constraint is considered by many as one of the key barriers to adoption of modern agricultural technologies, such as chemical fertilizer, improved seeds, and irrigation technologies, among smallholders. Past research and much policy discourse associates agricultural credit constraints with supply-side factors, such as limited access to credit sources or high costs of borrowing. However, demand-side factors, such as risk-aversion and financial illiteracy among borrowers, as well as high transaction costs, can also play important roles in credit-rationing for smallholders. Using primary survey data from Ethiopia and Tanzania, this study examines the nature of credit constraints facing smallholders and the factors that affect credit constraints. In addition, we assess whether credit constraints are gender-differentiated. Results show that demand-side credit constraints are at least as important as supply-side factors in both countries. Women are more likely to be credit constrained (from both the supply and demand sides) than men. Based on these findings, we suggest that policies should focus on addressing both supply- and demand-side credit constraints, including through targeted interventions to reduce risk, such as crop insurance and gender-sensitive policies to improve women’s access to credit. |
| format | Artículo preliminar |
| id | CGSpace110680 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1106802025-11-07T08:06:56Z Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania Balana, Bedru Mekonnen, Dawit Kelemework Haile, B. Hagos, Fitsum Yimam, S. Ringler, Claudia financial institutions microfinance gender policies farmers constraints socioeconomic environment agricultural credit agriculture smallholders adoption irrigation small scale systems econometric models small-scale aquaculture credit risk factors loans supply balance agricultural technology technology transfer households technology women Credit constraint is considered by many as one of the key barriers to adoption of modern agricultural technologies, such as chemical fertilizer, improved seeds, and irrigation technologies, among smallholders. Past research and much policy discourse associates agricultural credit constraints with supply-side factors, such as limited access to credit sources or high costs of borrowing. However, demand-side factors, such as risk-aversion and financial illiteracy among borrowers, as well as high transaction costs, can also play important roles in credit-rationing for smallholders. Using primary survey data from Ethiopia and Tanzania, this study examines the nature of credit constraints facing smallholders and the factors that affect credit constraints. In addition, we assess whether credit constraints are gender-differentiated. Results show that demand-side credit constraints are at least as important as supply-side factors in both countries. Women are more likely to be credit constrained (from both the supply and demand sides) than men. Based on these findings, we suggest that policies should focus on addressing both supply- and demand-side credit constraints, including through targeted interventions to reduce risk, such as crop insurance and gender-sensitive policies to improve women’s access to credit. 2020-11-01 2021-01-02T05:49:31Z 2021-01-02T05:49:31Z Working Paper https://hdl.handle.net/10568/110680 en https://doi.org/10.1177/0973801020919840 https://doi.org/10.1007/s12571-018-0812-5 https://doi.org/10.1016/j.wds.2022.100012 https://hdl.handle.net/10568/150130 https://doi.org/10.2499/p15738coll2.133847 Open Access application/pdf International Food Policy Research Institute Balana, Bedru; Mekonnen, Dawit Kelemework; Haile, Beliyou; Hagos, Fitsum; Yiman, Seid; and Ringler, Claudia. 2020. Are smallholder farmers credit constrained? Evidence on demand and supply constraints of credit in Ethiopia and Tanzania. IFPRI Discussion Paper 1974. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134152. |
| spellingShingle | financial institutions microfinance gender policies farmers constraints socioeconomic environment agricultural credit agriculture smallholders adoption irrigation small scale systems econometric models small-scale aquaculture credit risk factors loans supply balance agricultural technology technology transfer households technology women Balana, Bedru Mekonnen, Dawit Kelemework Haile, B. Hagos, Fitsum Yimam, S. Ringler, Claudia Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title | Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title_full | Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title_fullStr | Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title_full_unstemmed | Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title_short | Are smallholder farmers credit constrained? evidence on demand and supply constraints of credit in Ethiopia and Tanzania |
| title_sort | are smallholder farmers credit constrained evidence on demand and supply constraints of credit in ethiopia and tanzania |
| topic | financial institutions microfinance gender policies farmers constraints socioeconomic environment agricultural credit agriculture smallholders adoption irrigation small scale systems econometric models small-scale aquaculture credit risk factors loans supply balance agricultural technology technology transfer households technology women |
| url | https://hdl.handle.net/10568/110680 |
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