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Impact of formal credit on agricultural output: Evidence from Pakistan

机译:正规信贷对农业产出的影响:来自巴基斯坦的证据

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In the current study, we have analyzed the impact of formal credit on agricultural output : Evidence from Pakistan. by using secondary data from 1996 to 2015. Augmented Dickey Fuller (ADF) test was applied to check the stationarity of the data. Contrarily, the Johansen Co-integration test (Trace Statistic) was used to find out whether there exists a long run relationship between formal credit and agricultural output. The method of (OLS) was used to estimate the impact of formal credit on agricultural output. The empirical regression results indicate that the explanatory variable (formal credit) was statistically with coefficient of 0.860350. This means 1% increase in credit will increase the agricultural output by 0.86%. It is clear that impact of formal credit on agricultural output has positive and significant. Therefore, our study suggests that the procedure of credit should be made simple and flexible and financial institutions should launch crop insurance scheme in case of crop failure by flood, draught, pest attack, and heavy rains. Also Government of Pakistan should support small farmers through credit schemes on affordable interest rate. It will helpful in raising farm productivity and the standard of living of the small farmers.
机译:在当前的研究中,我们分析了正规信贷对农业产出的影响:来自巴基斯坦的证据。通过使用1996年至2015年的辅助数据。应用增强Dickey Fuller(ADF)测试来检查数据的平稳性。相反,Johansen协整检验(跟踪统计)用于确定正式信贷与农业产出之间是否存在长期关系。 (OLS)方法用于估计正式信贷对农业产出的影响。经验回归结果表明,解释变量(正式信用)在统计上的系数为0.860350。这意味着信贷增加1%将使农业产量增加0.86%。显然,正规信贷对农业产出的影响是积极而显着的。因此,我们的研究建议应简化信贷程序,并在洪水,干旱,病虫害和暴雨造成农作物歉收的情况下,金融机构应启动农作物保险计划。巴基斯坦政府还应通过负担得起的利率信贷计划支持小农户。这将有助于提高农场的生产率和小农的生活水平。

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