Farm productivity under financial constraints in developing countries: evidence from maize smallholder farmers in Burkina Faso

Omer S. Combary

Agricultural and Resource Economics Review, 2022, vol. 51, issue 2, 380-390

Abstract: In this paper, we apply an indirect production function approach to analyze producers’ output and input allocation choices under expenditure constraints. Our estimation results show that financial constraints induced a nonoptimal usage of smallholder farm inputs, resulting in losses in potential productivity of approximately 25%. It appears that the presence of a binding expenditure constraint has led to an underutilization of fertilizer and manure as well as an overutilization of seed.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:cup:agrerw:v:51:y:2022:i:2:p:380-390_9

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