TITLE:
Impact of Agricultural Credit on Productivity
AUTHORS:
Hardy Zabatantou Louyindoula, Charles Alexis Bouity, Fernand Owonda
KEYWORDS:
Agricultural Credit, Productivity
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.6,
December
11,
2023
ABSTRACT: The aim of this article is to analyze the impact of agricultural credit
on agricultural productivity in the Congo. This work finds its affiliation in
the neoclassical theory developed by Gurley and Shaw (1967). Then McKinnon
(1973) to achieve this objective, we used the ESR model estimated by the
maximum likelihood method to take account of selectivity and endogeneity
problems. The results obtained show that, on average, the effect of
agricultural credit on agricultural productivity is 92.2%; in other words, the
majority of farmers who have obtained agricultural credit have a high
probability of improving their productivity. These results also show that
literacy rate, group membership and age influence access to agricultural
credit. These results confirm the hypothesis formulated in this work, insofar
as they support the view that access to agricultural credit increases
productivity.