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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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