Informations et ressources scientifiques
sur le développement des zones arides et semi-arides

Titre : The impact of agricultural credit on the productivity of Tef farmers, a case study from the Amhara region of Ethiopia

Auteur : Echo, Capwell Forbang

Université de soutenance : Gent University

Grade : International Master of Science in Rural Development 2020

Résumé
The agricultural sector of most Sub-Saharan African (SSA) countries is an important sector that defines the economic policies and is mainly responsible for growth. Ethiopia has a high agricultural potential yet low actual productivity especially for cereals such as tef with high socio-cultural and economic value. The orthodoxy of development stakeholders in Ethiopia holds that the problem of smallholder agriculture is that of inadequate technology adoption. Low productivity as a resultant has led to lower gross incomes and unsustainable livelihood strategies. Access to agricultural credit for technology adoption has proven to have an ability to improve yields and gross income of smallholder farmers. However, the source of credit farmers’ access, be it institutional or non-institutional potentially has different impacts on productivity both in magnitude and direction. Various approaches have been used to remedy this situation as governments have been changing strategies over time. From the provision of subsidies around the 1990s with limited recorded success to the recent market-oriented financial system consisting of specialized credit institutions. Data for 2269 tef farmers was extracted from the World Bank Living Standard Measurement Survey (LSMS) wave 3 carried out between 2015 - 2016 was used to analyze and achieve the objectives of this study. A multinomial logit model was run to ascertain the socio-economic and production factors influencing tef farmers’ access to various credit sources. Non-institutional credit access was positively and significantly influenced by gender (male) in the Amhara region, education, and commercialization in Ethiopia. Extension access in the Amhara region proved to have a negative and significant influence on non-institutional credit access. On the other hand, institutional credit access was significantly and positively triggered by gender (male) and inorganic fertilizer use in the Amhara region, and extension access inclusive in Ethiopia. Nevertheless, household size indicated a negative and significant influence in institutional credit access for tef farmers in the Amhara region. Also, a Heckman sample selection model employed to correct for selection bias and endogeneity portrayed non-institutional credit as having a positive impact on the gross income acquired by tef farmers with this effect being significant at the country level. Institutional credit proved to have a negative and significant impact on gross income both at the level of the Amhara region and Ethiopia

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