Assessment of Formal Credit and Climate Change Impact on Agricultural Production in Pakistan: A Time Series ARDL Modeling Approach

Gan

2020

IJSE

PurposeThis study investigates the short-run and long-run impacts of agricultural credit on Vietnam's agricultural GDP over the period 2004:Q4–2016:Q4, with the incorporation of agricultural labor, public investment and rainfall as important determinants of agricultural GDP.Design/methodology/approachThis study applies the indicator saturation (IS) break tests and the autoregressive distributed lag (ARDL) bounds test with structural breaks to examine the credit–agricultural performance nexus. The causal relationships among variables are explored through the Toda–Yamamoto Granger causality test.FindingsThe results indicate that agricultural credit positively influences agricultural GDP in both the short-run and long-run. A unidirectional causal relationship running from credit to agricultural GDP is confirmed. The results also discover the positive and significant effects of labor and rainfall on agricultural GDP in the long-run.Practical implicationsThe results imply that the government should focus on expanding agricultural credit as well as enhancing the efficiency of agricultural credit. Furthermore, formal credit institutions should be encouraged to work closely with farmers and agricultural enterprises to offer flexible lending periods and amounts to meet the real situation of agricultural production.Originality/valueThis study is the first to examine the credit–agricultural performance relationship at the macro-level in Vietnam. Based on the empirical results, the study provides crucial implications for policymakers to optimize the effectiveness of agricultural credit and enhance nationwide agricultural performance.

Section: Ijse 479supporting

confidence: 90%

Section: Literature Review 21 Credit and Agricultural Performance Relationshipmentioning

confidence: 99%

Does credit boost agricultural performance? Evidence from Vietnam

Gan

2020

IJSE

“…Considering this, the impact of agricultural credit has attracted considerable attention. Several studies have analyzed the effects of formal agricultural credit in developing countries (for instance, [5,8,9,[16][17][18][19][20][21][22]). By employing diverse designs, most of these studies show that formal agricultural credit plays a critical role in transforming the agricultural production process by relieving capital constraints.…”

Section: Introductionmentioning

confidence: 99%

Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?

et al. 2021

Access to credit is essential for sustainable agricultural development. This paper evaluates the impact of formal and informal agricultural credit, access to extension services, and different combinations of agricultural credit and extension services on the economic outcomes of farming households in Afghanistan. This study applies a quasi-experimental approach (propensity score matching) and inverse-probability-weighted regression adjustment (IPWRA) analysis. The data comes from a survey of 277 randomly selected farming households in the three districts of rural Afghanistan. The results show that having access to formal agricultural credit has a positive and differentiated impact on the farming costs and net revenue of farming households. However, the effects increase when a farming household has access to both formal credit and extension services. The results also reveal that credit constraints affect farming costs and net revenue. The study provides some practical implications for agricultural development policymakers. First, formal agricultural credit affects farm revenue in rural Afghanistan. Second, the impact of credit bundled with agricultural extension services on farm revenue is higher than the impact of the provision of each service separately. Therefore, a more sustainable agricultural credit arrangement should be supplemented by extension services for farmers in Afghanistan.

“…Food security has been under the threat of several interconnected factors such as population growth, environmental problems, and land degradation. It is estimated that the everincreasing world population will reach approximately 10 billion by 2100 (Chandio et al 2020a). Developing countries have played a major role in this increase.…”

Section: Introductionmentioning

confidence: 99%

“…The agricultural sector requires credit to finance its primary ingredients, such as fertilizers, pesticides, seeds, and livestock, for modernization and commercialization (Rehman et al 2017), and to enhance technical efficiency, productivity, and increase profitability (Bahşi and Çetin 2020). Hence, the role of agricultural credit in agricultural production has been investigated and documented by previous research (Ahmad 2011;Akmal et al 2012;Chandio et al 2020a). Recently, although there is many published high-quality research that investigates the relationship between environmental degradation, climate change, and environmental production, they do not take into account the role of credit and labor force (Asumadu-Sarkodie and Owusu 2017; Rehman et al 2020;Rehman et al 2021).…”

Section: Introductionmentioning

confidence: 99%

Addressing the long- and short-run effects of climate change on major food crops production in Turkey

Chandio

Gökmenoğlu

Ahmad

2021

Environ Sci Pollut Res

Self Cite

This study assessed the long-run (LR) and short-run (SR) impacts of climatic and non-climatic factors, i.e., CO 2 emissions (CO 2 e), average level of temperature (ALT), average level of precipitation (ALP), area harvested of wheat and rice crops (AHW and (AHR), domestic credit (DCR), and agricultural labor (ALB) on wheat and rice production (WP and RP) in Turkey by using annual time series data ranging from 1980 to 2016 and by employing several econometric techniques. The autoregressive distributed lag-bounds (ARDL) approach and the Johansen and Juselius cointegration (JJC) test confirmed a valid long-term connection among underlying variables. The estimation results from the ARDL model reveal that climatic factors such as CO 2 emissions and temperature adversely affected wheat production in the long run as well as in the short run, whereas precipitation positively improved wheat production in both periods. Further results indicate that non-climatic factors like area harvested of wheat and domestic credit positively and significantly enhanced wheat production in the long run and short run. Similarly, CO 2 emissions also adversely affected rice production in both periods, while temperature and precipitation positively contributed towards rice production in both cases. In addition, area harvested of rice positively and significantly boosted rice production in the long run as well as in the short run, while domestic credit negatively influenced rice production in the long run but in the short run positively improved rice production. Additionally, the outcomes of the VECM Granger Causality for both rice and wheat production confirm that both climatic and non-climatic variables have a strong influence on the production of both crops. This study found that climate change has a deleterious influence on both wheat and rice production; therefore, the study suggests that temperature-resistant varieties of both crops should be developed and introduced by agricultural research institutions. In addition to this, up-to-date information is more needed related to climate change, and in the farming communities, it should be provided by agricultural extension workers.