What is the impact of rural bank credit access on the technical efficiency of smallholder cassava farmers in Ghana? An endogenous switching regression analysis.
Ontology highlight
ABSTRACT:
SUBMITTER: Missiame A
PROVIDER: S-EPMC8165398 | biostudies-literature |
REPOSITORIES: biostudies-literature
Similar Datasets
Project description:This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and credit rationing probabilities, accounting for sample selection, unobserved heterogeneity and state dependence. Empirical results show that small and informationally opaque businesses, with deteriorated public support and credit history, face greater difficulties in obtaining bank loans. Furthermore, we provide evidence of a significant degree of state dependence in access to credit. In particular, firms that have already experienced credit restrictions are more likely to face further constraints, while enterprises that applied for bank financing in the past seem to have easier access to credit. Focusing on the subset of firms actually needing additional bank financing, we also find that past credit restrictions significantly reduce their current demand, providing evidence of a significant discouragement effect. Supplementary Information The online version contains supplementary material available at 10.1007/s11187-021-00545-x. Plain English Summary Access to bank credit is a key driver of firms’ survival and growth, especially in bank-based financial systems. Building on detailed longitudinal survey data, this study investigates the determinants of access to bank financing by firms in the euro area, both in a static and dynamic setting. Most importantly, we account for the intertemporal nature of firms’ loan demand behaviour and banks’ credit granting choices and show that they are both characterized by significant persistence over time. We also find that repeated lending interactions enhance access to credit and that firms needing additional financing tend to be discouraged from applying after having experienced an actual credit restriction. Our findings shed light on the existence of substantial and persistent financial frictions in banking markets, which play a key role in amplifying adverse economic shocks, and call for policy and regulatory interventions to improve firms’ access to credit and limit systemic vulnerabilities. Supplementary Information The online version contains supplementary material available at 10.1007/s11187-021-00545-x.
| S-EPMC8530204 | biostudies-literature
Project description:This study was conducted to assess the potential impact of applying a new groundnut planting density on welfare of smallholder farmers in northern Ghana. We used data from on-farm experiments, focus group discussions, and a household survey. We followed three steps in our analysis. First, we conducted cost-benefit analysis in which we showed the economic advantage of the new technology over the farmers' practice. Second, we predicted adoption rates along timeline using the Adoption and Diffusion Outcome Prediction Tool (ADOPT). Third, using the results of the first and the second steps, we estimated the potential impact of the technology on poverty at household level using a combination of methods such as economic surplus model and econometric model. The cost-benefit analysis shows that increasing plant density increases farmers' financial returns i.e., the benefit-cost-ratio increases from 1.05 under farmers' practice to 1.87 under the best plant density option, which is 22 plants/sqm. The adoption prediction analysis shows that the maximum adoption rate for the best practice will be 62% which will take about nine years to reach. At the maximum adoption rate the incidence of extreme poverty will be reduced by about 3.6% if farmers have access to the international groundnut market and by about 2% if they do not have. The intervention will also reduce poverty gap and poverty severity. The results suggest that policy actions which can improve farmers' access to the international market will enhance farmers' welfare more than the situation in which farmers have access to domestic markets only. Furthermore, promoting a more integrated groundnut value-chain can broaden the demand base of the produce resulting in higher and sustainable impact of the technology on the welfare of groundnut producers and beyond.
| S-EPMC8759684 | biostudies-literature
Project description:Conservation agriculture (CA) practices are being widely promoted in many areas in sub-Saharan Africa to recuperate degraded soils and improve ecosystem services. This study examined the effects of three tillage practices [conventional moldboard plowing (CT), hand hoeing (MT) and no-tillage (NT)], and three cropping systems (continuous maize, soybean-maize annual rotation, and soybean/maize intercropping) on soil quality, crop productivity, and profitability in researcher and farmer managed on-farm trials from 2010 to 2013 in northwestern Ghana. In the researcher managed mother trial, the CA practices of NT, residue retention and crop rotation/intercropping maintained higher soil organic carbon, and total soil N compared to conventional tillage practices after 4 years. Soil bulk density was higher under NT than under CT soils in the researcher managed mother trails or farmers managed baby trials after 4 years. In the researcher managed mother trial, there was no significant difference between tillage systems or cropping systems in maize or soybean yields in the first three seasons. In the fourth season, crop rotation had the greatest impact on maize yields with CT maize following soybean increasing yields by 41 and 49% compared to MT and NT maize, respectively. In the farmers' managed trials, maize yield ranged from 520 to 2700 kg ha-1 and 300 to 2000 kg ha-1 for CT and NT, respectively, reflecting differences in experience of farmers with NT. Averaged across farmers, CT cropping systems increased maize and soybean yield ranging from 23 to 39% compared with NT cropping systems. Partial budget analysis showed that the cost of producing maize or soybean is 20-29% cheaper with NT systems and gives higher returns to labor compared to CT practice. Benefit-to-cost ratios also show that NT cropping systems are more profitable than CT systems. We conclude that with time, implementation of CA practices involving NT, crop rotation, intercropping of maize and soybean along with crop residue retention presents a win-win scenario due to improved crop yield, increased economic return, and trends of increasing soil fertility. The biggest challenge, however, remains with producing enough biomass and retaining same on the field.
| S-EPMC5478712 | biostudies-literature
Project description:Poverty is prevalent in the small-farm sector of many developing countries. A large literature suggests that contract farming-a preharvest agreement between farmers and buyers-can facilitate smallholder market participation, improve household welfare, and promote rural development. These findings have influenced the development policy debate, but the external validity of the extant evidence is limited. Available studies typically focus on a single contract scheme or on a small geographical area in one country. We generate evidence that is generalizable beyond a particular contract scheme, crop, or country, using nationally representative survey data from 6 countries. We focus on the implications of contract farming for household income and labor demand, finding that contract farmers obtain higher incomes than their counterparts without contracts only in some countries. Contract farmers in most countries exhibit increased demand for hired labor, which suggests that contract farming stimulates employment, yet we do not find evidence of spillover effects at the community level. Our results challenge the notion that contract farming unambiguously improves welfare. We discuss why our results may diverge from previous findings and propose research designs that yield greater internal and external validity. Implications for policy and research are relevant beyond contract farming.
| S-EPMC6955373 | biostudies-literature
Project description:The use of mobile phones has increased rapidly in many developing countries, including in rural areas. Besides reducing the costs of communication and improving access to information, mobile phones are an enabling technology for other innovations. One important example are mobile phone based money transfers, which could be very relevant for the rural poor, who are often underserved by the formal banking system. We analyze impacts of mobile money technology on the welfare of smallholder farm households in Kenya. Using panel survey data and regression models we show that mobile money use has a positive impact on household income. One important pathway is through remittances received from relatives and friends. Such remittances contribute to income directly, but they also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased farm inputs, market a larger proportion of their output, and have higher profits than non-users of this technology. These results suggest that mobile money can help to overcome some of the important smallholder market access constraints that obstruct rural development and poverty reduction.
| S-EPMC4186858 | biostudies-literature
Project description:BACKGROUND:Although Kenya has a relatively high number of registered biopesticide products, little is known about biopesticide use by smallholders. This paper documents farmers' current use and perception of chemical pesticides and biopesticides, their willingness to pay for biopesticides, and the key challenges to biopesticide uptake. RESULTS:A survey found that chemical pesticides are used widely by smallholders despite awareness of the risks to human health and the environment. Almost half of respondents showed awareness of biopesticides, but current use in the survey localities was low (10%). Key reasons for the low use of biopesticides by smallholders in this study are: perceptions of effectiveness, primarily speed of action and spectrum of activity, availability and affordability. Smallholders who used biopesticides cited effectiveness, recommendation by advisory services and perception of safety as key reasons for their choice. Although farmers viewed both pesticides and biopesticides as costly, they invested in the former due to their perceived effectiveness. Average willingness to pay, above current chemical pesticide expenditures per cropping season was 9.6% (US$5.7). Willingness to pay differed significantly between counties, and was higher among farmers with more education or greater awareness of the health risks associated with pesticide use. CONCLUSION:This study confirms the low use of biopesticide products in the survey areas, alongside high use of conventional chemical pesticides. In order to promote greater uptake of biopesticides, addressing farmers' awareness and their perceptions of effectiveness is important, as well as increasing the knowledge of those providing advice and ensuring registered products are available locally at competitive prices. © 2020 The Authors. Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.
| S-EPMC7586800 | biostudies-literature
Project description:I analyse the effects of two macroprudential policy measures implemented in Switzerland: the activation of the countercyclical capital buffer (CCyB) and a cap on the loan-to-value (LTV) ratios. I use a difference-in-differences method to estimate the effects of these measures on risk indicators, such as their LTV and loan-to-income (LTI) ratios and mortgage growth rates. I find that both the CCyB and the LTV cap led to a reduction in high LTV mortgages. The banks affected by the CCyB also reduced their mortgage growth rates. I do not find any evidence that these measures had unintended consequences on LTI risks, other measures of mortgage lending standards, or non-mortgage credit growth. Supplementary Information The online version contains supplementary material available at 10.1007/s10693-022-00378-z.
| S-EPMC8943354 | biostudies-literature
Project description:Temporal changes in occupancy of the Georges Bank (NE USA) fish and invertebrate community were examined and interpreted in the context of systems ecological theory of extinction debt (EDT). EDT posits that in a closed system with a mix of competitor and colonizer species and experiencing habitat fragmentation and loss, the competitor species will show a gradual decline in fitness (occupancy) eventually leading to their extinction (extirpation) over multiple generations. A corollary of this is a colonizer credit, where colonizer species occupancy may increase with fragmentation because the disturbance gives that life history a transient relative competitive advantage. We found that competitor species occupancy decreased in time concomitant with an increase in occupancy of colonizer species and this may be related to habitat fragmentation or loss owing to industrialized bottom trawl fishing. Mean species richness increased over time which suggests less specialization (decreased dominance) of the assemblage that may result from habitat homogenization. These analyses also showed that when abundance of species was decreased by fishing but eventually returned to previous levels, on average it had a lower occupancy than earlier in the series which could increase their vulnerability to depletion by fishing. Changing occupancy and diversity patterns of the community over time is consistent with EDT which can be exacerbated by direct impacts of fishery removals as well as climate change impacts on the fish community assemblage.
| S-EPMC5125594 | biostudies-literature
Project description:Declining soil fertility continues to hinder agricultural production especially among resource-constrained smallholder farmers in sub-Saharan Africa, prompting for evaluation of the strategies used by these farming communities. In this study, we assess soil fertility management among smallholder farmers in Mount Kenya East region. The aim is to examine underlying factors conditioning the uptake of integrated soil fertility management (ISFM) practices in this region; determine the adoption relationship between the practices; and to cluster these techniques. Data for this study was collected between January-March 2019 through a household survey based on a farm household questionnaire and complemented with semi-structured interview with farmers and extension officers. Statistical analyses were generated using SPSS. We use hierarchical clustering analysis to visualize ISFM combination patterns, and correlation matrix in factor analysis to determine the inter-relationship between different ISFM practices. Fisher's exact test and Welch's t-test were used to examine the association between explanatory variables and adoption of ISFM practices. Results show that the decision to invest in fertility practices was correlated with a number of farmers' socio-economic, farm-related factors and institutional characteristics. Fertilizer application correlated significantly with manure use, agroforestry and minimum tillage. ISFM techniques were separated into 3 sets following Ward's hierarchical clustering, namely, manure, fertilizer use and agroforestry (cluster 1 or C1), slash-no-burn, residue burn and fallowing (C2); and residue application and minimum tillage (C3). The study recommends creation of an enabling environment including innovative financing opportunities to facilitate farmers' investment capacities in ISFM and cushion them from potential income loss resulting from implementation of some technologies.
| S-EPMC8010630 | biostudies-literature
Project description:We investigate the networked nature of the Japanese credit market. Our investigation is performed with tools of network science. In our investigation we perform community detection with an algorithm which is identifying communities composed of both banks and firms. We show that the communities obtained by directly working on the bipartite network carry information about the networked nature of the Japanese credit market. Our analysis is performed for each calendar year during the time period from 1980 to 2011. To investigate the time evolution of the networked structure of the credit market we introduce a new statistical method to track the time evolution of detected communities. We then characterize the time evolution of communities by detecting for each time evolving set of communities the over-expression of attributes of firms and banks. Specifically, we consider as attributes the economic sector and the geographical location of firms and the type of banks. In our 32-year-long analysis we detect a persistence of the over-expression of attributes of communities of banks and firms together with a slow dynamic of changes from some specific attributes to new ones. Our empirical observations show that the credit market in Japan is a networked market where the type of banks, geographical location of firms and banks, and economic sector of the firm play a role in shaping the credit relationships between banks and firms.
| S-EPMC4416770 | biostudies-literature