African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6842

Article in Press

The Effect of Institutional Credit on Sugarcane Productivity: Evidence from Southern Sindh, Pakistan

Abbas Ali Chandio, Yuansheng Jiang, Abdul Rehman

  •  Received: 23 October 2018
  •  Accepted: 05 December 2018
The purpose of this paper is to examine the impact of institutional credit on sugarcane productivity in southern Sindh, Pakistan. Data used in this study are gathered through a survey of 120 sugarcane farmers in Badin district within Sindh province of Pakistan. This study employed descriptive statistics and Cobb-Douglas production function to analyse the data. The findings show that the coefficient of institutional credit was positive and significant, which revealed that institutional credit has a positive impact on the productivity of sugarcane. Therefore, institutional credit is an important tool for increasing agricultural productivity and improving the welfare of the sugarcane growers in the study area. The present paper will be an important addition to the emerging literature in the current agricultural credit effect studies and will helpful especially the economic planners and policy makers who are responsible for allocating funds for the agricultural sector in general and for the sugarcane sector in particular.

Keywords: Institutional Credit, Sugarcane Productivity, Cobb-Douglas, Pakistan