2008-04-04 papers

on Microfinance

Issue of 2008‒04‒04
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam By Stampini, Marco; Davis, Benjamin

Does Off-Farm Labor Relax Farmers’ Credit Constraints? Evidence from Longitudinal Data for Vietnam

By:	Stampini, Marco (African Development Bank); Davis, Benjamin (Food and Agriculture Organization of the United Nations)
Abstract:	We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non-agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.
Keywords:	rural labor markets, linkages, credit constraints, Vietnam
JEL:	J43 Q12
Date:	2008–03
URL:	http://d.repec.org/n?u=RePEc:iza:izadps:dp3403&r=mfd

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