Economics at your fingertips  

Credit margin of investment in the agricultural sector and credit fungibility: the case of smallholders of district Shikarpur, Sindh, Pakistan

Abbas Ali Chandio (), Yuansheng Jiang () and Abdul Rehman ()
Additional contact information
Abbas Ali Chandio: Sichuan Agricultural University
Yuansheng Jiang: Sichuan Agricultural University
Abdul Rehman: Anhui University Hefei

Financial Innovation, 2018, vol. 4, issue 1, 1-10

Abstract: Abstract Background This study examines the access to credit, credit investment, and credit fungibility for small-holder farmers and medium- and large-scale farmers in the agricultural sector of the Shikarpur District of Sindh, Pakistan. Methods A standardized questionnaire was used to collect data from 87 farmers in the Shikarpur District. We investigated the availability of credit and the use of credit fungibility by farmers with small-, medium-, and large-scale holdings by applying a credit fungibility ratio and an ANOVA technique. The factors that influence the farmers’ access to agricultural credit were analyzed using a probit regression model. Results The results revealed that farmers in both study groups used some amount of their agricultural credit for non-agricultural activities. Further, the results of the probit regression analysis showed that formal education, farming experience, household size, and farm size had a positive and significant influence on the farmers’ access to agricultural credit. Conclusion Based on these findings, our study suggests that a strong monitoring of farmers is needed in the study area.

Keywords: Agricultural credit; Fungibility; Investment of Credit; Credit margin; Pakistan (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

Access Statistics for this article

Financial Innovation is currently edited by J. Leon Zhao and Zongyi

More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-06
Handle: RePEc:spr:fininn:v:4:y:2018:i:1:d:10.1186_s40854-018-0109-x