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Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam

Marco Stampini and Benjamin Davis

No 3403, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non-agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.

Keywords: credit constraints; linkages; rural labor markets; Vietnam (search for similar items in EconPapers)
JEL-codes: J43 Q12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2008-03
New Economics Papers: this item is included in nep-agr, nep-dev, nep-lab, nep-mfd and nep-sea
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Published - revised version published in: Agricultural Economics, 2009, 40(2), 177-188

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