Response of Livestock Farmers to Institutional Credit Use in Pakistan: A Case Study of Bahawalnagar District
Pakistan Journal of Humanities and Social Sciences, Volume 3, No. 1, Pages 25-40, Jan-June 2015
16 Pages Posted: 8 Jan 2016
Date Written: January 7, 2016
Substantial dependence on agricultural production is amongst the common characteristics of developing economies. In such an economic milieu, proper utilization of institutional credit — provided to livestock farmers — could reap multiple benefits for the farming communities. The present study aimed to answer that how come social, economic, and geographical context of a livestock farmer might or might not cause to happen the proper utilization of agricultural credit gained. For empirical analysis, primary information was collected from a sample of 143 farmers residing in the selected district (Bahawalnagar) of southern Punjab. In determining a farmer’s response toward credit use, descriptive statistics exhibited a clear role of the gender and geographical area of the farmer; whereas the findings estimated through logistic regression signified the livestock income, off-farm income, and the herd size as the key credit-use-determinants. The study suggests that for a loaning institute, prior information about a farmer’s income diversification may serve as a proxy to predict his/her credit-use response. In order to improve credit use efficiency, the study also favors the adoption of gender-specific and area-specific approaches for agricultural credit disbursement.
Keywords: Farmers, livestock assets, institutional credit, income diversification, southern Punjab
JEL Classification: C31, G21, J1, O16, Q14
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