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Credit, tenancy choice and agricultural efficiency: Evidence from the northern region of Bangladesh

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  • Bidisha, Sayema Haque
  • Hossain, Md. Amzad
  • Alam, Rubaiyat
  • Hasan, Md. Mehedi

Abstract

Using both household level and plot-level data from Northern Bangladesh, this paper analyzes the difference in agricultural productivity across different contractual arrangements among ultra-poor households. Employing the fixed-effect model on the pseudo panel data, the paper finds evidence of sub-optimal use of inputs and, consequently, lower productivity for lands cultivated under sharecropping contracts. The inefficiency on the part of sharecroppers is also evident from the stochastic frontier model. Although the paper finds that credit has no direct impact on productivity, the results of Logit estimates suggest that availability of credit induces households to opt for fixed-rental contracts.

Suggested Citation

  • Bidisha, Sayema Haque & Hossain, Md. Amzad & Alam, Rubaiyat & Hasan, Md. Mehedi, 2018. "Credit, tenancy choice and agricultural efficiency: Evidence from the northern region of Bangladesh," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 22-32.
    • Handle: RePEc:eee:ecanpo:v:57:y:2018:i:c:p:22-32
    DOI: 10.1016/j.eap.2017.10.001
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    2. Liu, Yansui & Zou, Lilin & Wang, Yongsheng, 2020. "Spatial-temporal characteristics and influencing factors of agricultural eco-efficiency in China in recent 40 years," Land Use Policy, Elsevier, vol. 97(C).
    3. İbrahim Bozkurt & M. Veysel Kaya, 2021. "Agricultural production index: International comparison," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(6), pages 236-245.
    4. Le Phuong Xuan Dang & Viet-Ngu Hoang & Son Hong Nghiem & Clevo Wilson, 2023. "Social capital and informal credit access: empirical evidence from a Vietnamese household panel survey," Empirical Economics, Springer, vol. 65(1), pages 311-340, July.
    5. Nasim, Sanval & Helfand, Steven & Dinar, Ariel, 2020. "Groundwater management under heterogeneous land tenure arrangements," Resource and Energy Economics, Elsevier, vol. 62(C).
    6. Cao, Yueming & Bai, Yunli & Zhang, Linxiu, 2021. "Plot Size, Adjacency, and Farmland Rental Contract Choice," 2021 Conference, August 17-31, 2021, Virtual 315378, International Association of Agricultural Economists.
    7. Yueming Cao & Yunli Bai & Linxiu Zhang, 2022. "Plot Size, Adjacency, and Farmland Rental Contract Choice," Land, MDPI, vol. 11(4), pages 1-21, April.
    8. Kassouri, Yacouba & Kacou, Kacou Yves Thierry, 2022. "Does the structure of credit markets affect agricultural development in West African countries?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 588-601.

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    More about this item

    Keywords

    Agricultural productivity; Technical efficiency; Stochastic frontier model; Tenancy contact;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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