Access to Finance for Agricultural Mechanization in Bangladesh – Explaining Alternative Financial Instruments

Khondaker Golam Moazzem, Faisal Quaiyyum and Abrar Ahammed Bhuiyan

No 76, CPD Report from Centre for Policy Dialogue (CPD)

Abstract: Access to finance in Bangladesh’s agricultural mechanization sector is shaped by stakeholders’ preferences for alternative financial instruments. Local producers face the greatest financial constraints, primarily due to double taxation on raw materials and product sales. Survey results from 196 respondents show strong preference for asset-based finance and machine leasing, while other instruments remain largely underutilized. Econometric analysis reveals that education, financial literacy, government support, and firm characteristics significantly influence adoption.

Keywords: Agricultural Mechanization; Access Finance; Financial Instruments; Machine Leasing; Asset Finance; Financial Inclusion; Financial Literacy; Government Support; Supply Chain; Bangladesh Agriculture (search for similar items in EconPapers)
Pages: 72 pages
Date: 2025-10
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https://cpd.org.bd/resources/2026/01/Access-to-Fin ... anisation-Option.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:pdb:report:76

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