Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision?
It has been long hypothesized that lack of access to credit is the main reason why, despite higher profitability of High Yielding Varieties (HYVs), farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypothesis has...
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2002
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/156205 |
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| author | Rashid, Shahidur Sharma, Manohar Zeller, Manfred |
| author_browse | Rashid, Shahidur Sharma, Manohar Zeller, Manfred |
| author_facet | Rashid, Shahidur Sharma, Manohar Zeller, Manfred |
| author_sort | Rashid, Shahidur |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | It has been long hypothesized that lack of access to credit is the main reason why, despite higher profitability of High Yielding Varieties (HYVs), farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypothesis has generated a large body of literature with differing conclusions. This paper re-examines the issue in the context of a specially designed group-based lending program for small farmers in Bangladesh, who neither have access to formal sources of credit nor do they qualify to become members of other micro-credit organizations. Two measures of access to credit, credit limit and amount borrowed at a given point in time, are used to analyze the determinants of farm households' land allocation decision. Under a variety of model specifications, formulated within Heckman's two-step method, the results show that credit limits from the lending programs and informal sources are significant determinants of small farmers' decision to cultivate HYV. -- Authors' abstract.It has been long hypothesized that lack of access to credit is the main reason why, despite higher profitability of High Yielding Varieties (HYVs), farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypothesis has generated a large body of literature with differing conclusions. This paper re-examines the issue in the context of a specially designed group-based lending program for small farmers in Bangladesh, who neither have access to formal sources of credit nor do they qualify to become members of other micro-credit organizations. Two measures of access to credit, credit limit and amount borrowed at a given point in time, are used to analyze the determinants of farm households' land allocation decision. Under a variety of model specifications, formulated within Heckman's two-step method, the results show that credit limits from the lending programs and informal sources are significant determinants of small farmers' decision to cultivate HYV. -- Authors' abstract. |
| format | Artículo preliminar |
| id | CGSpace156205 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2002 |
| publishDateRange | 2002 |
| publishDateSort | 2002 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1562052025-11-06T06:04:51Z Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? Rashid, Shahidur Sharma, Manohar Zeller, Manfred microfinance credit smallholders land use economic aspects households micro-credit land allocation small farms resource allocation high-yielding varieties impact assessment decision making It has been long hypothesized that lack of access to credit is the main reason why, despite higher profitability of High Yielding Varieties (HYVs), farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypothesis has generated a large body of literature with differing conclusions. This paper re-examines the issue in the context of a specially designed group-based lending program for small farmers in Bangladesh, who neither have access to formal sources of credit nor do they qualify to become members of other micro-credit organizations. Two measures of access to credit, credit limit and amount borrowed at a given point in time, are used to analyze the determinants of farm households' land allocation decision. Under a variety of model specifications, formulated within Heckman's two-step method, the results show that credit limits from the lending programs and informal sources are significant determinants of small farmers' decision to cultivate HYV. -- Authors' abstract.It has been long hypothesized that lack of access to credit is the main reason why, despite higher profitability of High Yielding Varieties (HYVs), farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypothesis has generated a large body of literature with differing conclusions. This paper re-examines the issue in the context of a specially designed group-based lending program for small farmers in Bangladesh, who neither have access to formal sources of credit nor do they qualify to become members of other micro-credit organizations. Two measures of access to credit, credit limit and amount borrowed at a given point in time, are used to analyze the determinants of farm households' land allocation decision. Under a variety of model specifications, formulated within Heckman's two-step method, the results show that credit limits from the lending programs and informal sources are significant determinants of small farmers' decision to cultivate HYV. -- Authors' abstract. 2002 2024-10-24T12:43:28Z 2024-10-24T12:43:28Z Working Paper https://hdl.handle.net/10568/156205 en Open Access application/pdf International Food Policy Research Institute Rashid, Shahidur; Sharma, Manohar; Zeller, Manfred. 2002. Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? MTID Discussion Paper 45. https://hdl.handle.net/10568/156205 |
| spellingShingle | microfinance credit smallholders land use economic aspects households micro-credit land allocation small farms resource allocation high-yielding varieties impact assessment decision making Rashid, Shahidur Sharma, Manohar Zeller, Manfred Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title | Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title_full | Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title_fullStr | Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title_full_unstemmed | Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title_short | Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? |
| title_sort | micro lending for small farmers in bangladesh does it affect farm households land allocation decision |
| topic | microfinance credit smallholders land use economic aspects households micro-credit land allocation small farms resource allocation high-yielding varieties impact assessment decision making |
| url | https://hdl.handle.net/10568/156205 |
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