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Investigating the Impact of Agricultural Credit on Wheat Farming: Evidence from Pakistan

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  • Shahbaz Ali Larik

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China
    Department of Economics, Shaheed Benazir Bhutto University, Shaheed Benazirabad (SBBU, SBA), Nawabshah 67450, Sindh, Pakistan)

  • Asad Amin

    (College of International Education, Guangxi Minzu University & Staffordshire University, Nanning 530000, China)

  • Amber Gul

    (College of Management, Sichuan Agricultural University, Chengdu 611130, China)

  • Paruss Panhwar

    (School of Public Administration, Northwest University, Xi’an 710127, China)

  • Jam Ghulam Murtaza Sahito

    (Department of Agricultural Economics, Faculty of Agricultural Social Sciences, Sindh Agriculture University, Tandojam 70060, Sindh, Pakistan)

  • Guo Hua

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

Abstract

Increasing food production is crucial for attaining the Sustainable Development Goal (SDG#2) by 2030 through supplying agricultural credit and improved inputs. Thus, the present study examined the roles of agricultural credit, applications of fertilizer, usage of pesticides, farming area, and agricultural employment in enhancing wheat production in the developing economy (Pakistan) from 1990 to 2020. This study applied the autoregressive distributed lag (ARDL) regression method for the empirical analysis. The empirical findings from the ARDL regression technique revealed that agricultural credit can significantly enhance wheat production, while improved inputs, including fertilizer and pesticide usage, also positively contribute to wheat production. Notably, agriculture credit plays a vital role in assisting farmers to purchase advanced farm inputs and indirectly increases the wheat yield. Consequently, this study suggests that the banking sector should supply agricultural credit to farmers under flexible lending conditions; therefore, farmers can easily access credit and adopt modern technologies to enhance food production and ensure food security.

Suggested Citation

  • Shahbaz Ali Larik & Asad Amin & Amber Gul & Paruss Panhwar & Jam Ghulam Murtaza Sahito & Guo Hua, 2024. "Investigating the Impact of Agricultural Credit on Wheat Farming: Evidence from Pakistan," Agriculture, MDPI, vol. 14(12), pages 1-17, December.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:12:p:2200-:d:1535131
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    References listed on IDEAS

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    5. Huaquan Zhang & Abbas Ali Chandio & Fan Yang & Yashuang Tang & Martinson Ankrah Twumasi & Ghulam Raza Sargani, 2022. "Modeling the Impact of Climatological Factors and Technological Revolution on Soybean Yield: Evidence from 13-Major Provinces of China," IJERPH, MDPI, vol. 19(9), pages 1-16, May.
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