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Research Note: The Demand For And Marginal Productivity Of Finance Capital In The South African Agriculture

Author

Listed:
  • Lubbe, W. F.
  • du Plessis, W. H.

Abstract

The efficient and productive use of capital as an input into the South African agriculture are investigated in this research. Shifts in demands for long term, cooperative and bank credit were larger and probably more frequent than the respective supplies, resulting in dominant and relative price elastic supply functions. Cooperative credit is a substitute for long term credit, while bank credit is complements to other credit types. The marginal productivities of equity and medium term credit show operation in irrational production phases. Equity had an increasing marginal productivity indicating insufficient usage, while the negative marginal productivity of medium term credit indicates over meganization.

Suggested Citation

  • Lubbe, W. F. & du Plessis, W. H., 1993. "Research Note: The Demand For And Marginal Productivity Of Finance Capital In The South African Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(01), March.
    • Handle: RePEc:ags:agreko:267566
    DOI: 10.22004/ag.econ.267566
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