Investigating the Impact of Agricultural Credit on Wheat Farming: Evidence from Pakistan

Shahbaz Ali Larik, Asad Amin, Amber Gul, Paruss Panhwar, Jam Ghulam Murtaza Sahito and Guo Hua ()
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Shahbaz Ali Larik: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Asad Amin: College of International Education, Guangxi Minzu University & Staffordshire University, Nanning 530000, China
Amber Gul: College of Management, Sichuan Agricultural University, Chengdu 611130, China
Paruss Panhwar: School of Public Administration, Northwest University, Xi’an 710127, China
Jam Ghulam Murtaza Sahito: Department of Agricultural Economics, Faculty of Agricultural Social Sciences, Sindh Agriculture University, Tandojam 70060, Sindh, Pakistan
Guo Hua: College of Economics, Sichuan Agricultural University, Chengdu 611130, China

Agriculture, 2024, vol. 14, issue 12, 1-17

Abstract: Increasing food production is crucial for attaining the Sustainable Development Goal (SDG#2) by 2030 through supplying agricultural credit and improved inputs. Thus, the present study examined the roles of agricultural credit, applications of fertilizer, usage of pesticides, farming area, and agricultural employment in enhancing wheat production in the developing economy (Pakistan) from 1990 to 2020. This study applied the autoregressive distributed lag (ARDL) regression method for the empirical analysis. The empirical findings from the ARDL regression technique revealed that agricultural credit can significantly enhance wheat production, while improved inputs, including fertilizer and pesticide usage, also positively contribute to wheat production. Notably, agriculture credit plays a vital role in assisting farmers to purchase advanced farm inputs and indirectly increases the wheat yield. Consequently, this study suggests that the banking sector should supply agricultural credit to farmers under flexible lending conditions; therefore, farmers can easily access credit and adopt modern technologies to enhance food production and ensure food security.

Keywords: agricultural credit; sustainable agriculture; modern inputs; wheat production; ARDL method (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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