Show simple item record

Why and for What? An Evidence of Agriculture Credit Demand Among Rice Farmers in Pakistan

dc.contributor.authorMuhammad Rizwan
dc.contributor.authorQing Ping
dc.contributor.authorSaleem Iram
dc.contributor.authorAdnan Nazir
dc.contributor.authorQing Wang
dc.description.abstractCredit is a crucial factor in agricultural development. This study explores the reality in the commonly practiced sources by farmers for acquiring agricultural credit, its uses and environmental and socio-economic determinants. A total of 236 rice farmers with agricultural credit activity at least last two years were randomly selected and interviewed in the Punjab province of Pakistan using a multistage cluster sampling technique. The collected data were analyzed using ordinary linear regression (OLS) regression and multivariate probit regression (MPR) models. The results indicate that 73.7% of farmers used informal sources to acquire agricultural credit, while 22.1% of farmers acquired loans through public and private institutional sources, and 4.2% of farmers used both sources simultaneously. The acquired agricultural credit amount was not completely invested in the agricultural sector: 64.8% was invested in the agricultural sector, while 25.5% and 9.7% of the credit was used to manage their livelihood and business activities, respectively. OLS indicates that socio-economic and environmental factors are responsible for agricultural credit demand. Moreover, the MPR results indicate that different factors are responsible for requesting credit from formal and informal institutes. The findings provide suggestions for sustainable development in the agricultural sector, tackling environmental issues and socio-economic development to reduce poverty. As an emerging economy, formal and informal credit policies should be revisited and the rules regarding environmental and institutional guidelines for farmers should be softened, which would probably support development of credit policies in developing countries.
dc.publisherAsian Development Bank Institute
dc.titleWhy and for What? An Evidence of Agriculture Credit Demand Among Rice Farmers in Pakistan
dc.typeWorking Papers
dc.subject.expertSustainable agriculture
dc.subject.expertCommercial agriculture
dc.subject.expertAgricultural And Rural Development
dc.subject.expertMicroenterprises Finance
dc.subject.expertCommercial Finance Companies
dc.subject.expertEnterprise Financing
dc.subject.expertFinancial Analysis
dc.subject.expertBanking Finance And Investment
dc.subject.adbAgricultural institutes
dc.subject.adbAgricultural development
dc.subject.adbJoint projects
dc.subject.adbBusiness Financing
dc.subject.adbInvestment Requirements
dc.subject.adbInsurance Companies
dc.subject.adbInternational Monetary Relations
dc.subject.adbInternational Financial Market
dc.subject.adbExchange Rate
dc.subject.naturalFood Supply
dc.subject.naturalEconomic development
dc.subject.naturalNew agricultural enterprises
dc.subject.naturalCooperative agriculture
dc.subject.naturalGovernment policy
dc.subject.naturalRural land use
dc.subject.naturalLand use
dc.subject.naturalNatural resource
dc.subject.naturalWater supply
dc.subject.naturalNatural resource
dc.subject.naturalIrrigation systems
dc.subject.naturalInsurance stocks
dc.subject.naturalInsurance holding companies
dc.subject.naturalInsurance carriers
dc.subject.naturalInsurance agencies
dc.subject.naturalBusiness subsidies
dc.subject.naturalInvestment companies
dc.subject.naturalInternational banks and banking
dc.subject.naturalStock exchanges
dc.subject.naturalAgricultural diversification
dc.subject.naturalAgricultural resource
dc.subject.naturalFarm produce
dc.subject.naturalRice farming
dc.subject.naturalSoil science
dc.subject.naturalAgricultural information network
dc.subject.naturalAgricultural landscape management
dc.subject.naturalFarm management
dc.subject.naturalAgricultural innovations
dc.subject.naturalTechnological innovations
dc.subject.naturalFood Security
dc.subject.naturalNatural Rubber
dc.title.seriesADBI Working Paper Series
dc.title.volumeNo. 995
dc.contributor.imprintAsian Development Bank Institute
oar.adminregionCentral West Asia Region
oar.authorRizwan, Muhammad
oar.authorPing, Qing
oar.authorIram, Saleem
oar.authorNazir, Adnan
oar.authorWang, Qing

Files in this item


This item appears in the following Collection(s)

  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

Show simple item record