Does nonagricultural labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam

Marco Stampini and Benjamin Davis

Agricultural Economics, 2009, vol. 40, issue 2, 177-188

Abstract: We examine the relationship between participation in nonagricultural labor activities and farming production decisions, focusing on the use of inputs. Using longitudinal data for Vietnam from 1993 to 1998, we find that households engaged in nonagricultural labor spend significantly more on seeds, services, hired labor, and livestock inputs. This is consistent with the hypothesis that nonagricultural labor income relaxes credit constraints to farming.

Date: 2009
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