Article (Scientific journals)
Rural Credit and Farms Efficiency : Modelling Farmers Crédit Allocation Decisions, Evidences from Benin
Sossou, Comlan; Noma, Freddy; Yabi, Jacob
2014In Economics Research International, 2014
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Keywords :
rural credit; farm efficiency; Benin
Abstract :
[en] This paper analyses farmers’ credit allocation behaviors and their effects on technical efficiency. Data were collected from 476 farmers using themultistage sampling procedure.The stochastic frontier truncated-normal with conditional mean model is used to assess allocation schemes effects on technical efficiency. Tobitmodel reveals the impact of farmers’ sociodemographic characteristics on efficiency scores. Results reveal that farm revenue (about 2,262,566 Fcfa on average) is positively correlated with land acreage, quantity of labour, and costs of fertilizers and insecticides. Farmers’ behaviors respond to six schemes which are categorized in two allocations contexts : out-farm and in-farm allocations. The model shows that only scheme (e) positively impacts technical efficiency.This scheme refers to the decision to invest credit to purchase better quality of pesticides, herbicides, fertilizers, and so forth. The positive effect of the scheme (c) may be significant under conditions of farmers’ education level improvement. Then, scheme (e) is a better investment for all farmers, but effect of credit allocation to buy agricultural materials is positive only for educated farmers. Efficiency scores are reduced by household size and gender of the household head. Therefore a household with more than 10 members and a woman as head is likely to not be technically efficient.
Disciplines :
Agriculture & agronomy
Author, co-author :
Sossou, Comlan ;  Université de Liège - ULiège > Doct. sc. agro. & ingé. biol.
Noma, Freddy
Yabi, Jacob
Language :
English
Title :
Rural Credit and Farms Efficiency : Modelling Farmers Crédit Allocation Decisions, Evidences from Benin
Publication date :
August 2014
Journal title :
Economics Research International
ISSN :
2090-2123
eISSN :
2090-2131
Publisher :
Hindawi Publishing Corporation
Volume :
2014
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBi :
since 29 August 2014

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