Credit constraints and agricultural productivity in developing countries: The case of East Africa

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dc.creatorKinuthia, Bethuel Kinyanjui
dc.date2018-01-01
dc.date2024-06-21T09:08:28Z
dc.date2024-06-21T09:08:28Z
dc.date.accessioned2026-06-27T15:44:16Z
dc.descriptionSustained agricultural growth is crucial for reducing hunger and poverty in East Africa, where majority of the population rely on agriculture for their livelihood. However, smallholder farmers in the region face long-standing challenges, including low labor productivity, low levels of profits, and credit constraints factors that have adverse effects on smallholders’ farm output and investment. This paper seeks to re-examine the impact of credit on agricultural productivity and the efficiency losses associated with credit constraints in East Africa. The data is based on the Living Standards Measurement Study-Integrated Surveys on Agriculture for Tanzania and Uganda. The results show that credit affects agricultural productivity in East Africa in various ways. For example, households’ decision to borrow affects agricultural productivity in Uganda but not Tanzania. Additionally, the decision to borrow from formal and semi-formal sources affects agricultural productivity, and thus efficiency, significantly and positively in Uganda compared to Tanzania.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/146722
dc.identifier.urihttp://hdl.handle.net/123456789/113204
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceKinuthia, Bethuel Kinyanjui. 2018. Credit constraints and agricultural productivity in developing countries: The case of East Africa. AGRODEP Working Paper 40. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146722
dc.subjectsurveys
dc.subjectagricultural growth
dc.subjectfarmers
dc.subjecthunger
dc.subjectsmallholders
dc.subjectliving standards
dc.subjectlabour productivity
dc.subjectlivelihoods
dc.subjectpoverty
dc.subjectcredit
dc.subjecthousehold consumption
dc.subjectprofit
dc.subjectcredit control
dc.titleCredit constraints and agricultural productivity in developing countries: The case of East Africa
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)