TY - JOUR
T1 - Impact of credit access on farm performance
T2 - Does source of credit matter?
AU - Haryanto, Tri
AU - Wardana, Wahyu Wisnu
AU - Jamil, Iqram Ramadhan
AU - Brintanti, Annisaa Rizky Dwi
AU - Ibrahim, Kabiru Hannafi
N1 - Publisher Copyright:
© 2023
PY - 2023/9
Y1 - 2023/9
N2 - Access to credit is crucial to improve farm performance as it allows farmers to procure inputs and technology. However, on the empirical front, evidence of the impact of agricultural credit access remains scanty. This study examines how access to credit from formal and informal sources influences the productivity and technical efficiency of maize farming in ten major maize-producing provinces in Indonesia. Secondary Food Crops Survey data by Statistics Indonesia were employed and analyzed using a quasi-experimental approach, i.e., the propensity score matching (PSM). The estimation shows that agricultural credit access improves farm performance. In fact, the ability to obtain credit from institutions increased productivity and technical efficiency more effectively than from informal sources. This study suggests that agricultural credit access remains relevant in Indonesia and needs to be improved continuously.
AB - Access to credit is crucial to improve farm performance as it allows farmers to procure inputs and technology. However, on the empirical front, evidence of the impact of agricultural credit access remains scanty. This study examines how access to credit from formal and informal sources influences the productivity and technical efficiency of maize farming in ten major maize-producing provinces in Indonesia. Secondary Food Crops Survey data by Statistics Indonesia were employed and analyzed using a quasi-experimental approach, i.e., the propensity score matching (PSM). The estimation shows that agricultural credit access improves farm performance. In fact, the ability to obtain credit from institutions increased productivity and technical efficiency more effectively than from informal sources. This study suggests that agricultural credit access remains relevant in Indonesia and needs to be improved continuously.
KW - Agricultural credit
KW - Agricultural development
KW - Formal and informal sources
KW - Indonesia
KW - Maize productivity
KW - Technical efficiency
UR - http://www.scopus.com/inward/record.url?scp=85171378971&partnerID=8YFLogxK
U2 - 10.1016/j.heliyon.2023.e19720
DO - 10.1016/j.heliyon.2023.e19720
M3 - Article
AN - SCOPUS:85171378971
SN - 2405-8440
VL - 9
JO - Heliyon
JF - Heliyon
IS - 9
M1 - e19720
ER -