Bank Credit And Agricultural Output In South Africa: Cointegration, Short Run Dynamics And Causality

Chisasa, Joseph; Makina, Daniel

doi:10.19030/jabr.v31i2.9148

Cited by 37 publications

(37 citation statements)

References 24 publications

(18 reference statements)

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“…Joseph Chisasa and Daniel Makina (2015) shows that there is a positive and significant relationship between bank credit, capital formation and agricultural output in South Africa [8]. The empirical results of this study indicate that, in the short term, capital formation has a positive and significant effect on agricultural output.…”

Section: Government Policy On Agricultural Creditmentioning

confidence: 61%

The Constraints of Agricultural Credit and Government Policy Strategy

et al. 2018

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Low access to credit in the agricultural sector is also caused by problems of agricultural sector actors (especially farmers) and financial institutions. Farmers are still having difficulty in accessing credit (accessibility and unbankable) and the limited financial institutions that channel credit to the agricultural sector. Therefore, the government must issue a policy in growing the agricultural sector, especially in anticipation of access credit constraints by farmers. The agricultural sector as a high-risk business, therefore formal institutions are less interested in financing the agricultural sector on the grounds of high transaction costs, asymmetric information, low profits, lack of collateral, education of farmers is relatively low. In addition, most banks do not want to finance agriculture due to fluctuating production and uncontrolled price risk. While the constraints of the farmers in obtaining formal credit is a complex procedure, there should be collateral as well as high payment delay fees, long distances and less information about capital.

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Section: Government Policy On Agricultural Creditmentioning

confidence: 61%

The Constraints of Agricultural Credit and Government Policy Strategy

et al. 2018

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“…Accordingly, 17% of the difference between long-term, equilibrium, or the desired amount of agricultural GDP and the current or observed agricultural GDP is reduced each year. Findings in the literature show that agricultural credits positively affect agricultural productivity (SHAH et al, 2008;AYAZ & HUSSAIN, 2011;SALEEM & JAN, 2011;AGUNUWA et al 2015;AWOTIDE et al 2015;CHISASA & MAKINA, 2015;NNAMOCHA & EKE, 2015;UDOKA et al 2016;OGBUABOR & NWOSU, 2017;DURAMAZ & TAS, 2018;ADEMOLA, 2019;TAMBI & BIME, 2019). IQBAL et al (2003), SIAL et al (2011, REHMAN et al (2017), KOC et al (2019); REHMAN et al (2019), found that agricultural credits have a positive and statistically significant effect on agricultural GDP.…”

Section: Ols Regression For Parameter Relationsmentioning

confidence: 99%

Determining of agricultural credit impact on agricultural production value in Turkey

Bahşi

Çetin

2020

Cienc. Rural

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Agriculture is an indispensable activity for all countries. Depending on the increasing population, food needs can be met by increasing agricultural production. In this respect, it is of great importance to investigate the value of agricultural production and the factors affecting agricultural production. This study aimed to examine the impact on the agricultural production value of agricultural bank credit in Turkey. In the study, with the aim of examining the relationship between agricultural credit and agricultural production value in Turkey, 1998-2016 real agricultural loans and agricultural real gross domestic product annual data covering the period given above were used. The statistical analysis tool is ordinary least squares (OLS) techniques. According to OLS regression, the purposed model explains 83.94% of total variance. Regression coefficients show that effect of term is higher than effect of agricultural credits. The reason for this difference may be explained as dependency of credits on macroeconomic indicators and political structure of the country. This study proposes that agricultural credit mechanism in the country needs to be developed to increase the financing opportunities for the realization of technology and modernization investments by farmers.

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“…In equation (9), all the presumptive sign are correctly signed and the t-statistics were all significant at the one percent level of significance. In equation (10), all the variables apart from interest rate are all correctly signed. Interest rate, percentage of agriculture credit to total credit and percentage of non-oil export to total export are significant of at 5 percent level of significant.…”

Section: The Results Analysismentioning

confidence: 99%

Agricultural Credit and Economic Growth in Nigeria

Adesanya¹,

Ajala²

2019

AIMS Research Journal Publication

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The Agricultural sector is highly indispensable to growth of any nation. It has been the source of feeding of the populace, raw material for industries and income generation for other developmental activities. Various governments have been made efforts to improve economic growth and agricultural productivity through agricultural credit but rarely one can see any improvement in the sector. It is in line with these fundamental role that this study makes a giant stride to examine the impact of agricultural credit on Nigeria's economic growth. The study employs time series data from publications of Central Bank of Nigeria, Statistical Bulletin, National Bureau of Statistics and internet publication of policy issues on agriculture in Nigeria which spanned from 1985-2016. This study employs the three stage least square analysis as the estimation technique to investigate the variables. The findings shows that agricultural credit is an effective instrument for counter-cyclical agricultural output, non-oil export and GDP stabilization in the Nigerian economy although the value of GDP fell at the end of the period indicating that, such policies deteriorate with time. The study concludes that agricultural credit, interest rate exchange rates were all important in affecting aggregate output in Nigeria. The study recommends that agricultural credits should be extended for development of agricultural production because it has causality effect on economic growth.

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Bank Credit And Agricultural Output In South Africa: Cointegration, Short Run Dynamics And Causality

Abstract: In this paper we investigate the dynamic relationship between bank credit and agricultural output in South Africa

Cited by 37 publications

References 24 publications

The Constraints of Agricultural Credit and Government Policy Strategy

The Constraints of Agricultural Credit and Government Policy Strategy

Determining of agricultural credit impact on agricultural production value in Turkey

Agricultural Credit and Economic Growth in Nigeria

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