Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria
The agricultural sector in Nigeria is characterized by low productivity, driven partly by low use of modern technologies. Poor access to credit is seen as a key barrier to adoption of these technologies. discourse and literature often associate credit constraints with supply-side factors such as lim...
| Autores principales: | , |
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| Formato: | Conference Paper |
| Lenguaje: | Inglés |
| Publicado: |
International Association of Agricultural Economists
2021
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| Acceso en línea: | https://hdl.handle.net/10568/143019 |
| _version_ | 1855531899358806016 |
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| author | Balana, Bedru Oyeyemi, Motunrayo |
| author_browse | Balana, Bedru Oyeyemi, Motunrayo |
| author_facet | Balana, Bedru Oyeyemi, Motunrayo |
| author_sort | Balana, Bedru |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The agricultural sector in Nigeria is characterized by low productivity, driven partly by low use of modern technologies. Poor access to credit is seen as a key barrier to adoption of these technologies. discourse and literature often associate credit constraints with supply-side factors such as limited access or high borrowing costs. However, demand-side factors, such as borrower’s risk-averse behavior, transaction costs and information asymmetry equally play important roles in credit-rationing. Using a nationally representative LSMS-ISA data from 5000 smallholders in Nigeria and seemingly unrelated econometric models, we examine the nature of credit constraints, factors affecting credit constraints, and the effects of credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. Contrary to discourse, we found that demand-side factors are as important as supply-side constraints. Improving supply-side constraints thus may not necessarily address credit constraints for smallholders. On the supply side, lack of adequate collateral is the key constraints; hence supply-side policies should focus on enhancing smallholders’ capacity to possess bankable collateral, such as land titles or assets. On the demand-side, interventions such as crop insurance, information and extension services are needed to increase credit access, technology adoption, and agricultural productivity in Nigeria. |
| format | Conference Paper |
| id | CGSpace143019 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | International Association of Agricultural Economists |
| publisherStr | International Association of Agricultural Economists |
| record_format | dspace |
| spelling | CGSpace1430192024-11-13T12:23:14Z Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria Balana, Bedru Oyeyemi, Motunrayo agricultural technology policies technology smallholders adoption agricultural productivity credit rural areas The agricultural sector in Nigeria is characterized by low productivity, driven partly by low use of modern technologies. Poor access to credit is seen as a key barrier to adoption of these technologies. discourse and literature often associate credit constraints with supply-side factors such as limited access or high borrowing costs. However, demand-side factors, such as borrower’s risk-averse behavior, transaction costs and information asymmetry equally play important roles in credit-rationing. Using a nationally representative LSMS-ISA data from 5000 smallholders in Nigeria and seemingly unrelated econometric models, we examine the nature of credit constraints, factors affecting credit constraints, and the effects of credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. Contrary to discourse, we found that demand-side factors are as important as supply-side constraints. Improving supply-side constraints thus may not necessarily address credit constraints for smallholders. On the supply side, lack of adequate collateral is the key constraints; hence supply-side policies should focus on enhancing smallholders’ capacity to possess bankable collateral, such as land titles or assets. On the demand-side, interventions such as crop insurance, information and extension services are needed to increase credit access, technology adoption, and agricultural productivity in Nigeria. 2021-11-09 2024-05-22T12:11:34Z 2024-05-22T12:11:34Z Conference Paper https://hdl.handle.net/10568/143019 en Open Access International Association of Agricultural Economists Balana, Bedru; and Oyeyemi, Motunrayo. 2021. Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria. Presented at the 31st International Conference of Agricultural Economists, New Delhi, India, August 17-31, 2021. https://purl.umn.edu/315347 |
| spellingShingle | agricultural technology policies technology smallholders adoption agricultural productivity credit rural areas Balana, Bedru Oyeyemi, Motunrayo Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title | Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title_full | Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title_fullStr | Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title_full_unstemmed | Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title_short | Credit constraints and adoption of agricultural technologies in developing countries? Evidence from Nigeria |
| title_sort | credit constraints and adoption of agricultural technologies in developing countries evidence from nigeria |
| topic | agricultural technology policies technology smallholders adoption agricultural productivity credit rural areas |
| url | https://hdl.handle.net/10568/143019 |
| work_keys_str_mv | AT balanabedru creditconstraintsandadoptionofagriculturaltechnologiesindevelopingcountriesevidencefromnigeria AT oyeyemimotunrayo creditconstraintsandadoptionofagriculturaltechnologiesindevelopingcountriesevidencefromnigeria |