Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan

Maqbool Sial, Masood Awan () and Muhammad Waqas ()

MPRA Paper from University Library of Munich, Germany

Abstract: In our predominant and cash-strapped agrarian sector, adequate credit provision is a definite buttress to implant technological advancements, achieve technical efficiency and hire efficient inputs to uplift agriculture output/income collectively and eradicate poverty eventually. In the midst of beleaguered informal credit sector and recent spurt in banking services in last decade diverted the attention to envisage the formal sector’s optimum potential. In this backdrop, this study is going to explore the role of institutional credit in agricultural production using the time series data for the period of 1972 to 2008. Cobb-Douglas production function is estimated using OLS and all the variables are transformed to per cultivated hectare. Results show that agricultural credit, availability of water, cropping intensity and agricultural labor force are positively significantly related to agricultural production.

Keywords: Agricultural Credit; Time series analysis; Pakistan (search for similar items in EconPapers)
JEL-codes: G21 G38 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (9)

Published in International Journal of Economics and Finance 2.3(2011): pp. 126-132

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31815

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