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Article
Publication date: 17 December 2018

Abbas Ali Chandio, Yuansheng Jiang and Abdul Rehman

This study aims to empirically examine the relationship between energy consumption and agricultural economic growth in Pakistan over the period from 1984 to 2016.

Abstract

Purpose

This study aims to empirically examine the relationship between energy consumption and agricultural economic growth in Pakistan over the period from 1984 to 2016.

Design/methodology/approach

This study used the autoregressive distributed lag (ARDL) bounds testing approach to cointegration to investigate the long-run and short-run determinants of agricultural economic growth in Pakistan.

Findings

The results of the ARDL bounds testing approach to cointegration revealed that long-run linkage exists among the study variables. The findings of this paper showed that agricultural economic growth is positively affected by gas consumption and electricity consumption both in the long-run and short run. The long-run and short-run coefficients of gas consumption and electricity consumption were estimated to be 0.906, 0.421, 0.595 and 0.276, respectively. The estimated equation remains stable during the period from 1984 to 2016 as analyzed by the stability tests.

Originality/value

This study considers the relationship between energy consumption and agricultural economic growth in Pakistan by using an ARDL bounds testing approach to cointegration. The study has three contributions to economic literature:this study used different unit root tests to test stationarity of the variables such as ADF unit root test by Dicky and Fuller and P-P unit root test by Philip and Perron; the ARDL bounds testing approach to cointegration is applied to test the existence of long-run analysis between energy consumption and agricultural economic growth; and to check the robustness, the authors used the Johansen cointegration test to examine the long-run relationship between dependent and independent variables.

Details

International Journal of Energy Sector Management, vol. 13 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

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Article
Publication date: 14 August 2018

Abbas Ali Chandio, Yuansheng Jiang, Feng Wei and Xu Guangshun

The purpose of this paper is to evaluate the impact of short-term loan (STL) vs long-term loan (LTL) on wheat productivity of small farms in Sindh, Pakistan.

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5687

Abstract

Purpose

The purpose of this paper is to evaluate the impact of short-term loan (STL) vs long-term loan (LTL) on wheat productivity of small farms in Sindh, Pakistan.

Design/methodology/approach

The econometric estimation is based on cross-sectional data collected in 2016 from 18 villages in three districts, i.e. Shikarpur, Sukkur and Shaheed Benazirabad, Sindh, Pakistan. The sample data set consist of 180 wheat farmers. The collected data were analyzed through different econometric techniques like Cobb–Douglas production function and Instrumental variables (two-stage least squares) approach.

Findings

This study reconfirmed that agricultural credit has a positive and highly significant effect on wheat productivity, while the short-term loan has a stronger effect on wheat productivity than the long-term loan. The reasons behind the phenomenon may be the significantly higher usage of agricultural inputs like seeds of improved variety and fertilizers which can be transformed into the wheat yield in the same year. However, the LTL users have significantly higher investments in land preparation, irrigation and plant protection, which may lead to higher wheat production in the coming years.

Research limitations/implications

In the present study, only those wheat farmers were considered who obtained agricultural loans from formal financial institutions like Zarai Taraqiati Bank Limited and Khushhali Bank. However, in the rural areas of Sindh, Pakistan, a considerable proportion of small-scale farmers take credit from informal financial channels. Therefore future researchers should consider the informal credits as well.

Originality/value

This is the first paper to examine the effects of agricultural credit on wheat productivity of small farms in Sindh, Pakistan. This paper will be an important addition to the emerging literature regarding effects of credit studies.

Details

Agricultural Finance Review, vol. 78 no. 5
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 18 October 2019

Martinson Ankrah Twumasi, Yuansheng Jiang and Monica Owusu Acheampong

The purpose of this paper is to determine the factors influencing rural youth farmers’ credit constraints status and the effect of credit constraint on the intensity of…

Abstract

Purpose

The purpose of this paper is to determine the factors influencing rural youth farmers’ credit constraints status and the effect of credit constraint on the intensity of participation of these farmers in Ghana.

Design/methodology/approach

The econometric estimation is based on cross-sectional data collected in 2018 from the Brong Ahafo region in Ghana. The sample data set consists of 450 rural youth farmers. The collected data were analyzed through different econometric techniques, using the endogenous switching regression model (ERSM).

Findings

The direct elicitation approach employed in this study revealed that out of the 450 farmers, 211 (47 percent) of the respondents were credit constrained compared to 239 (53 percent) of their counterparts who were unconstrained. The ERSM indicated that youth farmers education, age, savings, parents occupation reduced the probability of the rural youth farmer to be credit constrained but cumbersome loan application procedure and loan disbursement time positively affect credit constraint. Moreover, farmers that are credit constrained have lower intensity of participation in agriculture activities than a random farmer from the sample. This suggests that access to credit has a positive impact on the intensity of participation in agriculture activities.

Research limitations/implications

In this study, only rural youth farmers in a particular region were considered. However, there are youths all over the nation. Therefore, future researchers could consider other youth’s farmers elsewhere in the country.

Originality/value

Although existing studies have examined rural youth farmers’ participation in agriculture and credit constraint separately, the unique contribution of this paper is the analysis of credit constraint of rural youth farmers as well as the impact of credit constraint on the intensity of participation in agriculture activities.

Details

Agricultural Finance Review, vol. 80 no. 1
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 7 January 2020

Martinson Ankrah Twumasi, Yuansheng Jiang, Frank Osei Danquah, Abbas Ali Chandio and Wonder Agbenyo

The purpose of this paper is to examine the effect of savings mobilization on access to credit among smallholder farmers’ in the Birim central municipality of Ghana.

Abstract

Purpose

The purpose of this paper is to examine the effect of savings mobilization on access to credit among smallholder farmers’ in the Birim central municipality of Ghana.

Design/methodology/approach

A cross-sectional primary data set was used to estimate the factors influencing smallholder farmers’ access to credit and size of loan to be borrowed using the IV-Probit and IV-Tobit model.

Findings

The results of the study revealed that savings mobilization has a positive significant impact on access to credit and the total amount of credit one can borrow as well. Other control variables such as transaction cost and farm size depicted a negative significant impact on access to credit. Land ownership, member of an association, household size, years of farming experience and education also showed a positive significant impact on access to credit.

Research limitations/implications

The paper only examined the savings effect on credit accessibility among smallholder farmers in one of the municipality’s in the Eastern region of Ghana. Future research should consider all or many municipality for an informed generalization of findings.

Practical implications

This paper provides evidence that smallholder farmers knowledge on the financial market is poor and it would require the policymakers or NGOs to organize financial management training programs so that the farmers high ignorance of the financial market will significantly reduce.

Originality/value

Although existing studies have examined smallholder farmers’ access to credit, the unique contribution of this paper is the analysis of the impact of saving mobilization on credit accessibility in Ghana, a major access to credit determinant in the financial market. In addition, those researchers who factored in savings as an access to credit determinant did not also consider the casual relationship between these two variables, thus, the present of endogeneity of which this paper does.

Details

Agricultural Finance Review, vol. 80 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

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Article
Publication date: 9 April 2019

Abbas Ali Chandio, Yuansheng Jiang and Abdul Rehman

The purpose of this paper is to examine the effect of support price on wheat production in Pakistan during the period 1971–2016.

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6420

Abstract

Purpose

The purpose of this paper is to examine the effect of support price on wheat production in Pakistan during the period 1971–2016.

Design/methodology/approach

To capture the effect of support price on wheat production, the authors estimated the long-run linkage by using the ARDL bounds testing approach to cointegration.

Findings

This study confirmed the presence of a positive and long-term effect of area under cultivation, support price and fertilizer consumption on wheat production through ARDL bounds test. The results showed that both in the long run and short run, support price plays an important role in the enhancement of wheat production. The authors also found that the coefficients of the area under cultivation and fertilizer consumption variables were statistically significant and positive both in the long run and short run.

Originality/value

The use of the ARDL approach that examines the long-run and short-run effects of support price on wheat production in Pakistan makes the current study unique. An emerging economic literature suggests that only limited research has been conducted in this area.

Details

Journal of Asian Business and Economic Studies, vol. 26 no. 1
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 17 August 2021

Martinson Ankrah Twumasi, Yuansheng Jiang, Salina Adhikari, Caven Adu Gyamfi and Isaac Asare

This paper aims to examine the determinants of rural dwellers financial literacy in Ghana.

Abstract

Purpose

This paper aims to examine the determinants of rural dwellers financial literacy in Ghana.

Design/methodology/approach

A cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.

Findings

The findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.

Research limitations/implications

The paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.

Practical implications

This paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.

Originality/value

Although previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 20 August 2020

Anthony Siaw, Yuansheng Jiang, Martinson Ankrah Twumasi, Wonder Agbenyo, Gideon Ntim-Amo, Frank Osei Danquah and Ernest Kwarko Ankrah

The purpose of this study is to examine the impact of access to credit on technical efficiency (TE) of maize farmers in a developing country, Ghana.

Abstract

Purpose

The purpose of this study is to examine the impact of access to credit on technical efficiency (TE) of maize farmers in a developing country, Ghana.

Design/methodology/approach

The study employed an instrumental variable approach and the stochastic frontier analysis (SFA) method for the estimation of the results.

Findings

The study found that farmers who have access to agricultural credit stand the chance of increasing TE by a margin of 8%, which also influences the maize production than those who did not have access to credit. The average TE score of the farmers was 74%. The study also found out that factors like membership, gender, farmers' access to credit, age and social network determine farmers' possibility of accessing agricultural credit. The study finds out that returns to size are increasing among the maize farmers and that significant improvement in efficiency can be realized by increasing the level of input used in production. Also, factors such as farm size, labor, seeds and fertilizer are the essential determinants of maize production output. Also, gender, extension, age, off-farm income, access to credit and membership were significant factors influencing technical inefficiency (TI).

Originality/value

The paper contributes to the existing literature on agricultural credit on rural agricultural development. The problem of endogeneity associated with access to credit, which has been considered by other researchers, is dealt with this study. This paper also provides information to government policymakers, practitioners and all other stakeholders in the maize sub-sectors and also will benefit small farmers outside the study area.

Details

Agricultural Finance Review, vol. 81 no. 2
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 5 May 2020

Zhao Ding, Awudu Abdulai and Yuansheng Jiang

This article examines the impact of experience on rural households' preferences for microfinance attributes, using household data from Sichuan province in China.

Abstract

Purpose

This article examines the impact of experience on rural households' preferences for microfinance attributes, using household data from Sichuan province in China.

Design/methodology/approach

We use the Bayesian updating method to account for the learning process involved in acquiring experience on microfinance. We then use the generalized multinomial logit model that accounts for both preference and scale heterogeneity to estimate the choice probabilities and impact of experience on preferences and willingness-to-pay (WTP) for microfinance.

Findings

The empirical findings show that experience with microfinance products or lending institutions helps households in their selections of microfinance institutions. In particular, experience with financial institutions increase the scale parameter and help respondents to feel assured about their choices, while experience with individual lenders have no such effects. The results also indicate that the willingness-to-pay estimates vary across experiences, with WTP for installment credit displaying the biggest change and the Bayesian updating making the changes even much larger.

Originality/value

This study contributes to the research gap by taking experience as a latent variable that influences personal specific tastes and as an integral part of total utility of rural households in their decision-making processes. We develop a conceptual framework that is based on McFadden's random utility theory and Bayesian inference.

Details

China Agricultural Economic Review, vol. 12 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article
Publication date: 14 July 2020

Abbas Ali Chandio, Yuansheng Jiang, Abdul Rehman, Martinson Ankrah Twumasi, Amber Gul Pathan and Muhammad Mohsin

In the developing countries, formal credit has dominant role for the development of agriculture sector. It increases the farmer's purchasing power for better farm inputs…

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3163

Abstract

Purpose

In the developing countries, formal credit has dominant role for the development of agriculture sector. It increases the farmer's purchasing power for better farm inputs and agricultural technology for high crop productivity. The main purpose of this study is to examine the influence of socioeconomic characteristics of smallholder farmers for credit demand in Sindh, Pakistan.

Design/methodology/approach

A cross-sectional data set randomly collected from 90 smallholder farmers in Thatta district, Sindh, Pakistan, is examined. Descriptive statistics, correlation and the OLS regression method were used to demonstrate the important factors affecting the demand for formal credit.

Findings

The results revealed that formal education, experience of farming, landholding size, road access and extension contacts positively and significantly influenced the demand for formal credit.

Originality/value

This study is the first, to the best of authors' knowledge, to demonstrate the influence of various socioeconomic characteristics of smallholder farmers on demand for formal credit in Sindh, Pakistan. It also illustrates the imperative contribution to the literature regarding credit access and demand to improve the agricultural productivity.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 3
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 19 June 2017

Edmond Yeboah Nyamah, Yuansheng Jiang, Yi Feng and Evelyn Enchill

The purpose of this paper is to examine the key risk components (probability and consequence) and their respective thresholds affecting agri-food supply chain operations…

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2701

Abstract

Purpose

The purpose of this paper is to examine the key risk components (probability and consequence) and their respective thresholds affecting agri-food supply chain operations in Ghana. In addition, it seeks to understand the relationship between the major risk sources and to fathom the risk/disruption impact on agri-food supply chain performance in Ghana.

Design/methodology/approach

Cross-sectional survey data were collected using a structured questionnaire. The risks threshold associated with agri-food supply chain were categorized using the risk matrix scale and classification described in the Project Management Body of Knowledge (Project Management Institute, 2013). Next, the Pearson correlation was used to understand the relationship between the various risks and agri-food chain performance. Lastly, to investigate how firms’ supply chain operations have been affected by risks/disruptions, an ordinary least square regression model was employed to quantify the impact of some major risk sources on agri-food chain performance in Ghana.

Findings

The results in this paper show variations in risks’ probability, impact and threshold in agri-food supply chain. While risk sources such as periodic change in interest/exchange rate policies and volatility in customer demand are high-rated risks, uncertain land policies/tenure and poor quality control are low rated risks in the operations of the chain. The performance of the agri-food chain significantly but negatively correlates with all the major risks studied. Whereas demand, supply, weather, logistics/infrastructure and financial risk sources significantly undermined the chain’s performance, risks emerging from biological/environmental, management/operational, policy/regulations and political-related issues insignificantly affect the performance of agri-food supply chain in Ghana.

Research limitations/implications

This research is an area biased. However, some insightful managerial implications can be drawn from this paper to manage agri-food chain operations in a similar unstable environment. The result implies that risks are inevitable in agri-food chain but they differ in terms of menace to the chain’s operation. Therefore, to manage agri-food supply chain risks effectively, managers should periodically identify, quantify and categorize risk sources before making risk response decisions. In addition, the results show that risks account for about half of the overall agri-food chain performance in Ghana. This infers that managers/practitioners could improve the performance of the agri-food chain if limited resources are allocated to plan and effectively respond to major risks sources (such as demand, supply, finance, weather and logistical/ infrastructural services-related risks) undermining the performance of the chain.

Originality/value

This research contributes to the agri-food chain risk literature and provides managers/practitioners with empirical evidence of risk thresholds and their corresponding major impact on agri-food chain’s performance. Since risks explained about half of agri-food chain performance in Ghana, this research would prompt decision makers to improve on their risk assessment and responds (e.g. by employing efficient demand, supply and weather forecasting systems, logistic/infrastructure services, hedge to finance, etc.) to improve the chain’s performance.

Details

Management Decision, vol. 55 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

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