Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision?

Despite higher profitability of High Yielding Varieties (HYVs), it has long been hypothesized that lack of access to credit is one of the main reasons, why farmers in developing countries continue to allocate a portion of their land to traditional crop varieties. The empirical testing of this hypoth...

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Autores principales: Rashid, Shahidur, Sharma, Manohar, Zeller, Manfred
Formato: Journal Article
Lenguaje:Inglés
Publicado: Project MUSE 2004
Materias:
Acceso en línea:https://hdl.handle.net/10568/157587
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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 Despite higher profitability of High Yielding Varieties (HYVs), it has long been hypothesized that lack of access to credit is one of the main reasons, why 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 programs 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, have been 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.
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spelling CGSpace1575872024-11-14T11:37:13Z Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? Rashid, Shahidur Sharma, Manohar Zeller, Manfred land use households microcredit credit land allocation small farms smallholders impact assessment Despite higher profitability of High Yielding Varieties (HYVs), it has long been hypothesized that lack of access to credit is one of the main reasons, why 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 programs 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, have been 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. 2004-03 2024-10-24T12:50:54Z 2024-10-24T12:50:54Z Journal Article https://hdl.handle.net/10568/157587 en Limited Access Project MUSE Rashid, Shahidur; Sharma, Manohar; Zeller, Manfred. 2004. Micro-lending for small farmers in Bangladesh: does it affect farm households' land allocation decision? The Journal of Developing Areas 37(2): 13-29. https://doi.org/10.1353/jda.2004.0029
spellingShingle land use
households
microcredit
credit
land allocation
small farms
smallholders
impact assessment
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 land use
households
microcredit
credit
land allocation
small farms
smallholders
impact assessment
url https://hdl.handle.net/10568/157587
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AT zellermanfred microlendingforsmallfarmersinbangladeshdoesitaffectfarmhouseholdslandallocationdecision