What factors affect households’ decision to allocate credit for livestock production? Evidence from Ethiopia

Kaleb Shiferaw, Berhanu Geberemedhin and Dereje Legesse

MPRA Paper from University Library of Munich, Germany

Abstract: Access to credit is often viewed as a key to transform semi-subsistence smallholders into market oriented producers. However only few studies have examined factors that affect farmers’ decision to allocate credit on farm activities in general and livestock production in particular. A trivariate probit model with double selection is employed to identify factors that affect farmers’ decision to allocate credit on livestock production using data collected from smallholder farmers in Ethiopia. After controlling for two sample selection bias – taking credit in the production season and decision to allocate credit on farm activities – land ownership and access to a livestock centered extension service are found to have a significant (p

Keywords: livestock production; credit access; credit allocation; household decision; double sample selection (search for similar items in EconPapers)
JEL-codes: C34 D13 Q12 Q14 Q16 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dev and nep-mfd
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69344

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