DETERMINANTS OF FARMERS ACCESS TO BORROWING IN FORMAL CREDIT MARKET (A CASE STUDY OF D.I.KHAN)
Keywords:
agricultural credit policy of Pakistan, the study shows that education, age, area operated and male workers are the main determinates of borrowing in formal markets.Abstract
The study is based on household level survey in two selected villages
(Puroa and Yurak) of District Dera Ismail Khan in July 2001. As 10% of
all households in both villages are taken as sample. The data is collected
by using a pre-tested interview schedule. The objectives of the study are to
review the agricultural credit policy of Pakistan to identify factors
determining farmer access to formal credit and to investigate purposes of
credit. Logistic regression model is used to obtain maximum likelihood
estimates of explanatory variables explaining farmer access to borrowing
in formal markets.
The finding of the study shows that education, age, area operated and
male workers are the main determinates of borrowing in formal markets.
Farmer education and age are statistically significant at 5% level. The
study indicates that farmers has a limited access to the formal credit
markets as only 24% of the respondent got formal credit and 76% of
farmers has borrowed from informal sources.
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