New Economics Papers
on Microfinance
Issue of 2008‒04‒04
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

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

  1. 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

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