 MICRO-LENDING FOR SMALL FARMERS IN BANGLADESH: DOES IT AFFECT FARM HOUSEHOLDS' LAND ALLOCATION DECISION?Shahidur Rashid, Manohar P. Sharma and Manfred Zeller No 16230, MSSD Discussion Papers from CGIAR, International Food Policy Research Institute (IFPRI) Abstract: It has long been 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 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, 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. Keywords: Agricultural Finance; Land Economics/Use (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:iffp11:16230 Access Statistics for this paper More papers in MSSD Discussion Papers from CGIAR, International Food Policy Research Institute (IFPRI) Contact information at EDIRC. |
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