IDEAS home Printed from https://ideas.repec.org/p/ags/saea16/230130.html
   My bibliography  Save this paper

Choice of Agricultural Credit in Nepal

Author

Listed:
  • Gupta, Vivek
  • Gautam, Tej K.
  • Bhandari, Basu D.

Abstract

Income generating activities play a vital role to improve the livelihood of rural people in developing countries. International donor agencies and national policy makers would like to see subsistence farming transformed into commercial agriculture to enhance the well beings of people in developing countries. In Nepal for the last two decades or so, farmers are incorporating income generating activities in subsistent farming systems. Most popular income generating activities include mushroom cultivation, sericulture, apiculture, and fish culture. Our objective in this paper is to use a multinomial logit model to determine the factors affecting the choice of income generating activities by Nepalese farmers. Some of the important explanatory variables used in this model are availability of water, inputs (such as seeds and disinfectants), technology, and market accessibility. We use 2012 census data available from the Agricultural Census of Nepal to conduct this analysis. Preliminary results indicated that availability of inputs and accessibility to markets are the major determinants in selecting income generation activities. The outcome of this study may help to promote ideal income generating activities for the benefit of rural farmers in Nepal or other developing countries.

Suggested Citation

  • Gupta, Vivek & Gautam, Tej K. & Bhandari, Basu D., 2016. "Choice of Agricultural Credit in Nepal," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230130, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:230130
    DOI: 10.22004/ag.econ.230130
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/230130/files/Choice%20of%20Income%20generating%20activities.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.230130?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    2. Kurosaki, Takashi & Fafchamps, Marcel, 2002. "Insurance market efficiency and crop choices in Pakistan," Journal of Development Economics, Elsevier, vol. 67(2), pages 419-453, April.
    3. Block, S. & Webb, P., 2001. "The dynamics of livelihood diversification in post-famine Ethiopia," Food Policy, Elsevier, vol. 26(4), pages 333-350, August.
    4. Marcel Fafchamps, 1992. "Cash Crop Production, Food Price Volatility, and Rural Market Integration in the Third World," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 90-99.
    5. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    6. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dzanku, Fred M., 2015. "Household-specific food price differentials and high-value crop production in rural Ghana," Food Policy, Elsevier, vol. 57(C), pages 73-82.
    2. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    3. Ruben, Ruerd & Pender, John, 2004. "Rural diversity and heterogeneity in less-favoured areas: the quest for policy targeting," Food Policy, Elsevier, vol. 29(4), pages 303-320, August.
    4. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    5. Jianmei Zhao & Peter J. Barry, 2014. "Income Diversification of Rural Households in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 307-324, September.
    6. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.
    7. Fred Mawunyo Dzanku, 2018. "Rational But Poor? An Explanation for Rural Economic Livelihood Strategy," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 365-381, June.
    8. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2022. "Crops in crises: Shocks shape smallholders' diversification in rural Ethiopia," World Development, Elsevier, vol. 159(C).
    9. Nicholas Li, 2021. "In-kind transfers, marketization costs and household specialization: Evidence from Indian farmers," Working Papers tecipa-700, University of Toronto, Department of Economics.
    10. Ayenew, Habtamu Yesigat & Sauer, Johannes & Abate-Kassa, Getachew, 2016. "Rural Non-Farm Sector, Agricultural Self-Employment And Wage Employment In Agricultural Households: The Implications For Income And Risk In Rural Ethiopia," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244809, German Association of Agricultural Economists (GEWISOLA).
    11. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 73, number 73.
    12. Kopper, Sarah A., 2018. "Agricultural labor markets and fertilizer demand: Intensification is not a single factor problem for non-separable households," 2018 Annual Meeting, August 5-7, Washington, D.C. 274184, Agricultural and Applied Economics Association.
    13. Tesfaye, Wondimagegn, 2022. "Crop diversification and child malnutrition in rural Ethiopia: Impacts and Pathways," Food Policy, Elsevier, vol. 113(C).
    14. Pierre Marion & Etienne Lwamba & Andrea Floridi & Suvarna Pande & Megha Bhattacharyya & Sarah Young & Paul Fenton Villar & Shannon Shisler, 2024. "The effects of agricultural output market access interventions on agricultural, socio‐economic, food security, and nutrition outcomes in low‐ and middle‐income countries: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(2), June.
    15. Li, Nicholas, 2023. "In-kind transfers, marketization costs and household specialization: Evidence from Indian farmers," Journal of Development Economics, Elsevier, vol. 164(C).
    16. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    17. Paul Fenton Villar & Tomasz Kozakiewicz & Vinitha Bachina & Sarah Young & Shannon Shisler, 2023. "PROTOCOL: The effects of agricultural output market access interventions on agricultural, socio‐economic and food and nutrition security outcomes in low‐ and middle‐income countries: A systematic revi," Campbell Systematic Reviews, John Wiley & Sons, vol. 19(3), September.
    18. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    19. Ersado, Lire, 2005. "Small-scale irrigation dams, agricultural production, and health - theory and evidence from Ethiopia," Policy Research Working Paper Series 3494, The World Bank.
    20. Luca Tiberti & Marco Tiberti, 2015. "Rural Policies, Price Change and Poverty in Tanzania: An Agricultural Household Model-Based Assessment," Journal of African Economies, Centre for the Study of African Economies, vol. 24(2), pages 193-229.

    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea16:230130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.