Constraint¿s Analysis of Agricultural Credit Use in Pakistan
Implications for poverty reduction
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The study analyzed the constraints faced by the farmers to rural credit by utilizing two household level data sets. The first survey Pakistan Rural Household Survey (PRHS) 2001 was utilized to study the purpose, source structure and utilization of rural credit and; the second which covered nearly 160 households from Sargodha District 2007 was used to calculate the demand and interest rate function by applying Heckman two stage procedures. The focus of this study was to find out the affect of credit constraints of institutional credit on consumption and production pattern of the rural farm hous...
The study analyzed the constraints faced by the farmers to rural credit by utilizing two household level data sets. The first survey Pakistan Rural Household Survey (PRHS) 2001 was utilized to study the purpose, source structure and utilization of rural credit and; the second which covered nearly 160 households from Sargodha District 2007 was used to calculate the demand and interest rate function by applying Heckman two stage procedures. The focus of this study was to find out the affect of credit constraints of institutional credit on consumption and production pattern of the rural farm households. After measuring the probability of being constrained used to study affect on consumption pattern of farmers who were credit constraint. The frontier production function was used to study the affect of credit constrained and un-constrained farmers. The study will help to make the policy makers to make a well structured policy for the credit-constrained farmers. This will ultimately used as an instrument to reduce the poverty in Pakistan. We are highly obliged and indebted to Dr. Sohail J. Malik for his kindness, willing cooperation, support, and assistance throughout this work.
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