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What factors affect households’ decision to allocate credit for livestock production? Evidence from Ethiopia

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  • Shiferaw, Kaleb
  • GEBEREMEDHIN, Berhanu
  • LEGESSE, DEREJE

Abstract

Access to credit is often viewed as a key to transform semi-subsistence smallholders into market oriented producers. However only few studies have examined factors that affect farmers’ decision to allocate credit on farm activities in general and livestock production in particular. A trivariate probit model with double selection is employed to identify factors that affect farmers’ decision to allocate credit on livestock production using data collected from smallholder farmers in Ethiopia. After controlling for two sample selection bias – taking credit in the production season and decision to allocate credit on farm activities – land ownership and access to a livestock centered extension service are found to have a significant (p

Suggested Citation

  • Shiferaw, Kaleb & GEBEREMEDHIN, Berhanu & LEGESSE, DEREJE, 2015. "What factors affect households’ decision to allocate credit for livestock production? Evidence from Ethiopia," MPRA Paper 69344, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69344
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    More about this item

    Keywords

    livestock production; credit access; credit allocation; household decision; double sample selection;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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