干旱区生态环境知识资源中心(Arid): Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia

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DOI	10.1093/erae/jbab013
	Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia
	Abay, Kibrom A.; Koru, Bethelhem; Chamberlin, Jordan; Berhane, Guush
通讯作者	Abay, KA (corresponding author)，Int Food Policy Res Inst, Cairo, Egypt.
来源期刊	EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS
ISSN	0165-1587
EISSN	1464-3618
出版年	2022
卷号	49 期号:1
英文摘要	Credit markets are key instruments by which liquidity-constrained smallholder farmers may finance productive investments. However, the documented low demand and uptake of agricultural credit by smallholder farmers in sub-Saharan Africa pose challenges for energizing rural transformation in the region. In this paper, we investigate the impact of rainfall uncertainty-a major source of production risk-on the uptake of credit by rural farm households in Ethiopia. We further examine whether rainfall uncertainty explains credit rationing among those households not participating in rural credit markets. We find that rainfall variability discourages the uptake of agricultural credit. We also find that rainfall variability is associated with credit risk rationing, expressed as low demand for agricultural credit. We show that our findings are robust to alternative ways of constructing rainfall variability (inter-annual or inter-seasonal) and a battery of robustness checks. For instance, we show that rainfall variability is a strong predictor of credit uptake in rural areas while less relevant in urban areas. We also document heterogeneous responses to rainfall variability; those households living in the arid and semi-arid lands of Ethiopia, which are believed to be more vulnerable to recurrent weather shocks, are more responsive to rainfall variability in terms of reduced uptake of agricultural credit. Our results highlight the impacts of uninsured production risk on the demand for agricultural credit and hence smallholder agricultural investments. Our findings suggest the importance of interventions aimed at relaxing smallholders' credit rationing while also reducing their production risk.
英文关键词	agricultural credit production risk credit constraints credit rationing risk rationing
类型	Article
语种	英语
收录类别	SCI-E ; SSCI
WOS记录号	WOS:000743693200006
WOS关键词	RISK-CONTINGENT CREDIT ; TECHNOLOGY ADOPTION ; WEATHER DATA ; GENDER-DIFFERENCES ; POVERTY TRAPS ; PANEL-DATA ; INPUT USE ; FERTILIZER ; MICROFINANCE ; MARKETS
WOS类目	Agricultural Economics & Policy ; Economics
WOS研究方向	Agriculture ; Business & Economics
资源类型	期刊论文
条目标识符	http://119.78.100.177/qdio/handle/2XILL650/376964
作者单位	[Abay, Kibrom A.] Int Food Policy Res Inst, Cairo, Egypt; [Koru, Bethelhem; Berhane, Guush] Int Food Policy Res Inst, Addis Ababa, Ethiopia; [Chamberlin, Jordan] Int Maize & Wheat Improvement Ctr CIMMYT, Nairobi, Kenya
推荐引用方式 GB/T 7714	Abay, Kibrom A.,Koru, Bethelhem,Chamberlin, Jordan,et al. Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia[J],2022,49(1).
APA	Abay, Kibrom A.,Koru, Bethelhem,Chamberlin, Jordan,&Berhane, Guush.(2022).Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia.EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS,49(1).
MLA	Abay, Kibrom A.,et al."Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia".EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS 49.1(2022).