IMPACT OF INSTITUTIONAL CREDIT ON PRODUCTION EFFICIENCY OF FARMING SECTOR A Case Study of District Faisalabad

Transcription

1 149 Pakstan Economc and Socal Revew Volume 49, No. 2 (Wnter 2011), pp IMPACT OF INSTITUTIONAL CREDIT ON PRODUCTION EFFICIENCY OF FARMING SECTOR A Case Study of Dstrct Fasalabad SAIMA AYAZ and ZAKIR HUSSAIN* Abstract. The paper hghlghted the level of producton effcency of the farmng sector n dstrct Fasalabad n the Punjab provnce of Pakstan. Stochastc Fronter Analyss (SFA) technque was utlzed at farm level survey data of 300 farmers for the year The overall mean effcency score was 0.84 ndcatng 16 percent neffcency of the sample farmers. The SFA estmaton method also llustrated the parameters for the neffcency. Farmng experence, educaton, access to farmng credt, herd sze and number of cultvaton practces showed constructve and sgnfcant effect on the farmer s techncal effcency. The varable of credt showed hghest coeffcent value ( 0.14) ndcatng the mportance for the agrcultural credt showng that avalablty of credt to farmers was much more mportant than any other factor to mprove the resource use effcency n agrculture sector. I. INTRODUCTION The agrcultural credt plays an mportant role n makng farmng sector more productve and effcent n developng economes and Pakstan s n excepton. The shortage of credt avalablty or captal constrant faced by the farmers s one of the major problems n the adopton of modern technologes and effcency mprovement n the agrculture sector. The lack of resource constrants was not only the possbltes to realze opportuntes for ncrease n productvty but also the ablty to smooth consumpton (Malk, 1999). *The authors are, respectvely, Lecturer n Economcs and Vce-Chancellor at GC Unversty, Fasalabad (Pakstan). For correspondence: zakr_rana@yahoo.com.

2 150 Pakstan Economc and Socal Revew Farmers mmedately need funds after the harvestng perod for the next croppng season because of cash scarcty and non-payment of new crop. The modern agrculture s comprsed of hgh-yeldng seeds, fertlzers, and plant protecton measures (PPM). Most of the modern nputs are purchased through cash or on credt, thus, more and more farm households depend upon credt markets. The effcent credt market provded an opportunty to the farmers n meetng consumpton requrements and balanced nput use, thus, resultng n betterment of the farmers (Feder et al., 1990). Easy avalablty and access to credt provdes ablty to the farmers and entrepreneurs to dversfy agrculture sector by undertakng new nvestment or adopt new technologes. The rural credt market s comprsed of formal and nformal sector, playng a sgnfcant and an actve role n rural economy (Adams and Ftchett, 1992; Aleem, 1990). The formal agrcultural credt nsttutons n Pakstan comprsed of Zara Taraqat Bank Lmted (ZTBL), Commercal Banks, Federal Bank for Cooperatves and also some non-governmental organzatons (NGOs). The nsttutonal agrcultural credt was postvely affectng the agrcultural productvty n Pakstan (Iqbal et al., 2003). Consderng the dstnctve characterstcs of agrcultural credt, especally n developng natons, t was reasonable for the government to support rural and farmng sector development. The farmng sector development could be acheved by schedulng an adequate polcy framework for more effcent performance of rural fnancal market (FAO, 1998). A study regardng effcency of agrcultural credt n Pakstan Punjab was conducted by Sal and Carter (1996). It hghlghted that the ndvduals who obtaned average sze loans produced 48 percent more output than the non-borrowers. Zuber (1989) nvestgated that the mpact of nsttutonal credt comes through fnancng of seed and fertlzer. as Quresh and Shah (1992) analyzed that formal loans postvely affect agrcultural output through fnancng of captal nvestment. The authors found that fnancng captal nvestment s more benefcal than that of fnancng of seed and fertlzers. The effcency of producton unt has two elements,.e. techncal effcency and allocatve effcency. The former llustrates the capacty of producton unts to acheve maxmum output level holdng nput level fxed. The later descrbes the potental of producton unts to use optmal nput proportons for same level of output. The product of both techncal and allocatve effcences s the total economc effcency (EE).

3 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 151 The purpose of ths study s to nvestgate the mpact of credt on techncal effcency of agrcultural producton n Pakstan. The techncal effcency estmaton was carred out through Stochastc Fronter Analyss (SFA). II. DATA AND METHODOLOGY The purpose of ths study was to develop approaches s answerng the research questons; How much effcent were the farmers gettng agrcultural credt than the farmers not obtanng farmng credt? To acheve the goals of the study, a feld survey was conducted to collect prmary data. A sample data of 300 rural farmers were collected from two tehsls of Fasalabad dstrct: tehsl Fasalabad and tehsl Jaranwala. In each tehsl 150 farmng households were ntervewed, whch were further dvded nto two categores, credt users and non-users of credt. The data was collected through a well-structured comprehensve questonnare. The questonnare was also pre-tested n the feld. For the selecton of sample, lsts of farmers obtanng agrcultural loans were taken from Zara Traqyat Bank Lmted (ZTBL) of Fasalabad and Jaranwala branchs. The lst ncluded the requred nformaton related to the name of farmer gettng loan from ZTBL, vllage name, amount of loan and tme of takng loan. After gettng lst from ZTBL the vllages were selected randomly from both the lsts and the farmers of that vllage were ntervewed. In case of non-avalablty of the lsted farmers, other farmers who were obtanng loans from any other bank were ntervewed as a substtuton. In each vllage, almost equal number of borrowers and nonborrowers were ntervewed. Sample of 23 vllages from tehsl Jaranwala and 18 vllages from tehsl Fasalabad were randomly selected for ntervew. III. EFFICIENCY ANALYSIS Generally the proft maxmzaton s the man objectve of the farmers. However, the terms effcency achevement and maxmzaton of proft are the two parallel thngs and at sngle farm level t should be noted, one could not acheve effcency wthout proftablty. The frm meanngs of effcency also nvolve the perfect competton n market, as effcency could not be acheved f producers faced dfferent prces (Ells, 1992). The producton effcency estmaton leads to mplcatons for both economc theory and polces. Such analyss allowed the assessment of probable ncrease n output together wth the effcency enhancement (Farrell, 1957).

4 152 Pakstan Economc and Socal Revew To estmate techncal effcency, there are two commonly used approaches, the Data Envelopment Analyss (DEA) a nonparametrc technque and SFA, a parametrc approach. Under DEA the functonal form was not specfed for the producton technology and t also dd not ncluded the error terms, whereas n SFA, a specfed functonal form was used for the effcency estmaton and the error terms were descrbed for neffcency measurement (Farrell, 1957; Färe et al., 1990). IV. STOCHASTIC FRONTIER ANALYSIS (SFA) The varables for stochastc fronter producton functon for techncal effcency and neffcency were descrbed n two categores: Varables for fronter producton functon Varables for techncal neffcency model Varables for Fronter Producton Functon Y = f (X 1, X 2, X 3,, X n ) Y = Output X 1 = Labour (man days) X 2 = Fertlzer nutrents (Kg) X 3 = Irrgaton (acre nch) X 4 = Cash nputs (Rs.) X 5 = Expendtures on Lvestock (Rs.) Varables for Techncal Ineffcency Model Y = f (Z 1, Z 2, Z 3,, Z n ) Y = Output Z 1 = Operated area Z 2 = Experence Z 3 = Educaton Z 4 = Herd sze

5 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 153 Z 5 = Total cultvaton practce numbers Z 6 = Dummy for plant protecton measures (1 f usng PPM, 0 otherwse) Z 7 = Dummy for credt (1 f borrowers, 0 otherwse) Estmaton Process Meeusen and Broeck (1977) and Agner et al. (1977) proposed ntally stochastc fronter producton functon to estmate effcency (Coell et al., 1998). Agner et al. (1977) appled ths estmaton technque n the analyss of the US agrcultural data. By extendng the model of these authors the stochastc fronter producton functon was specfed as follows: y ε ( x,β ) e = F = 1, 2,, N (1) y = output of the th farm x = vector of nputs β = vector of k unknown parameters ε = error term The stochastc fronter functon s also enttled as composed error model, as t suggests that the error term ε has two components: A stochastc random error and A techncal neffcency component. The error term s as follows: ε = v u v = Two sded normally dstrbuted random error wth zero mean and varance σ 2 2,.e. N( 0, σ v ). It ncorporate the thngs that are away from the control of farmer (e.g., weather, luck, measurement error and statstcal nose) u = One sded half normal dstrbuted random varable wth scale 2 parameter σ μ. It s nonnegatve and shows techncal neffcency.

6 154 Pakstan Economc and Socal Revew Agner et al. (1977) parameterzed the log-lkelhood functon for halfnormal model n terms of σ = σ + μ σ and 2 2 / 2 0 v λ = σ μ σ v. If λ = 0 there are no techncal neffcency effects and all devatons from the fronter are due to nose. Usng ths parameterzaton, the log-lkelhood functon s 2 I I 1 πσ ε ( ) + Φ λ 1 2 ln L y β, σ, λ = ln ln 2 ε (2) 2 2 = 1 σ 2σ = 1 y s a vector of log-output, ε v u s a composte error term, and Φ (x) s cumulatve dstrbuton functon of the slandered normal random varable evaluated at x. Under stochastc fronter, the Cobb-Douglas model when frm produce output q usng only one nput x takes the followng form: ln q 0 + β1 q = β ln x + v u (3) = e ( β 0 + β 1 ln x ) v u e e ( β 0 + β ln x ) e 1 v = Determnstc component, e = Statstcal nose and Ineffcency (Coell et al., 1998). The followng model was specfed for the estmaton under SFA: (4) u e = ln Y = β 0 + β 1 ln (LAB) + β 2 (FERT) + β 3 (IRRI) + β 4 (CINP) + β 5 (LEXP) + v u (5) Y = Total farm ncome (Rs. / year) LAB = Annual use of labour on the th farm (man days / acre) FERT = Fertlzer appled on the th farm n a year (Nutrents Kg / acre) IRRI = Annual rrgaton appled on the th farm (Acre nch / acre) CINP = Annual cash nputs used on the th farm (Rs. / acre) LEXP = Annual expendtures on lvestock by the th farm (Rs. / anmal) The techncal neffcency component μ ncluded:

7 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 155 u = δ 0 + δ 1 (OPA) + δ 2 (EXP) + δ 3 (EDU) + δ 4 (HSIZ) + δ 5 (DCR) + δ 6 (CPR) + δ 7 (PPM) (6) OPA = Total operated area of the th farm (acres) EXP = The farmng experence of the th farmer (years) EDU = The level of educaton of the th farmer (schoolng years) HSIZ = Herd sze owned by the th farm (anmal unts) DCR = Dummy varable for credt of the th farm ( 1 f farm uses credt, 0 otherwse) CPR = Total cultural practces number of the th farm PPM = Number of plant protecton measures of the th farm Results from SFA The maxmum lkelhood evaluaton method was utlzed to estmate the parameters of stochastc fronter producton functon and to estmate the techncal neffcency effect. To estmate the parameters of the model, the FRONTIER 4.1 programme by Coell et al. (1998) was used. The mean value of estmated farm specfc techncal effcency through SFA was 0.84, ranged through 0.49 to 0.97 (Table 1). The estmated techncal effcency scores ndcated 84 percent techncal effcency of the farms n the study area. Therefore, t was possble to ncrease effcency of the sample farmers by 16 percent by adoptng modern technology and best farm practces. TABLE 1 Descrptve Statstcs of Techncal Effcency Scores (SFA) Mean 0.84 Standard Devaton 0.10 Mnmum 0.49 Maxmum 0.97 Total observatons 300 The dstrbuton of farm specfc techncal effcency obtaned through SFA was presented n Table 2. Dfferent levels of techncal effcency and percentage of borrowers and non-borrowers clearly explaned that rather

8 156 Pakstan Economc and Socal Revew more percentage of borrower were at hgh effcency level. The results presented n Table 2, ndcated a techncal effcency range from 0.49 to 0.96 for non-borrowers and from 0.57 to 0.97 for borrowers. It was shown that none of the farmer was techncally effcent n strct sense as no one had effcency score equal to 1. The effcency dstrbuton had shown that, 6 percent of non-borrower farmers whle only 2.72 percent of borrowng farmers were below 60 percent level of effcency. Table 2 also showed that percent of borrowers are above 80 percent effcency level whle the percentage of non-borrowers was 62. TABLE 2 Dstrbuton of Techncal Effcency of Borrowers and non-borrowers (SFA) Effcency class Farms usng credt (%) Farms not usng credt (%) Total Mnmum Maxmum The OLS estmaton results of the Cobb-Douglas producton functon were presented n Table 3 and the maxmum lkelhood (ML) estmates of the neffcency effect model were presented n Table 4. The statstcal sgnfcance of the estmated coeffcents was presented along wth t-statstc n the Tables 3 and 4. The t-statstc of the coeffcent of the Cobb-Douglas producton functon ndcate that two out of 5 coeffcents were statstcally sgnfcant at 0.01 percent probablty level; the coeffcent of fertlzer nutrents and the coeffcent of cash nputs were sgnfcant at 0.05 percent probablty level. The model parameters were robust and parsmonous. The economc explanaton of the coeffcents of producton fronter was nterpreted through the elastctes of nputs whch also gudes the producton decson. Table 3 showed that all the coeffcents of estmated varables had the expected postve sgns whch were consstent wth economc theory. The coeffcent of rrgaton and expendture on lvestock were sgnfcant at 0.01

9 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 157 percent probablty level. The coeffcent value of rrgaton ndcated that a one percent ncrease n water avalablty would ncrease farm output by percent. Ths showed that provson of rrgaton facltes and avalablty of water would lead to enhance farmng output. The results explaned that an ncrease n expendture on lvestock would ncrease farmer s ncome by percent. The value of estmated coeffcent of fertlzer was and was sgnfcant at 0.05 percent probablty level. The cash nputs ncluded land preparaton cost and seed cost and the coeffcent value was The labour was the only parameter whch was not statstcally sgnfcant, and magntude of the coeffcent was very low however the sgn was showng the excess labour. The observed pattern showed that labour was not a constrant n rasng farmng but there s a need to ncrease the productvty of labour. The results clearly showed that rrgaton was the most mportant factor effectng value of farm output as t had largest coeffcent value. The sum of the elastcty (0.66) ndcated that the farmers n the study area were operatng n the decreasng returns to scale regon. TABLE 3 OLS Estmates for Parameters of the Cobb-Douglas Producton Functon Varables Coeffcents t-statstc Constant 7.812* Labour days Fertlzer nutrents 0.103** Irrgaton 0.342* Cash nputs 0.139** Expendture on lvestock 0.067* Sum of elastctes 0.66 *Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.01 percent probablty level **Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.05 percent Probablty level ***Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.10 percent Probablty level The estmated parameters for the neffcency model were presented n Table 4 and suggested a number of factors that could explan the techncal

10 158 Pakstan Economc and Socal Revew neffcency. The negatve sgn of the estmated parameters showed postve mpact on effcency whereas postve sgn ndcated contrbutng to neffcency. The dependent varables were neffcency scores. The table 4 presented that only operatonal land holdng and dummy varable of plant protecton numbers had postve sgn ndcatng negatve effect on techncal effcency of the farms. The postve sgn of the operatonal land holdng explan the fact that farmers havng large farm sze tend to be less techncal effcent but ths varable was statstcally nsgnfcant. The farmng experence generally thought as postvely nfluencng the techncal effcency of the farmers snce the farmers had more knowledge about ther farms and farmng practces. Ths was observed n the study area as the coeffcent value of experence was and sgnfcant at 0.10 percent probablty level. TABLE 4 Maxmum Lkelhood Estmates of the Cobb Douglas Stochastc Fronter Functon Varables Coeffcents t-statstc Constant 0.554* Operated area Farmng experence 0.007** Educaton Year 0.024** Herd sze 0.013** Total cultvaton practce number 0.099** Dummy of plant protecton measures 0.187** Dummy of credt 0.136*** Sgma-squared 0.069* Gamma 0.785* *Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.01 percent probablty level **Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.05 percent Probablty level ***Indcates that the coeffcent was sgnfcantly dfferent from zero at 0.10 percent Probablty level The educaton of the farmer had coeffcent value and sgnfcant at 0.05 percent probablty level whch showed that educaton had postve

11 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 159 and hghly sgnfcant effect on techncal effcency of the farmers. Ths proved the argument that educated farmers were more effcent because they had better ablty to vsualze the correlaton among nput, technology and output. The results also ndcated the postve and sgnfcant effect of herd sze on techncal effcency of the farmer. It explaned that more number of anmals would certanly ncrease earnngs of the farmer. The results ndcated that coeffcent of credt dummy was hgher than all other estmated factors whch are postvely contrbutng to the techncal effcency of the farm. These results were n lne wth the study of Komcha (2007). It clearly explaned the mportance for the credt access showng that avalablty of credt to farmers s much more mportant than any other factor to mprove the resource use effcency n agrculture sector. The access to credt assures tmely use of farmng nputs and also provdes the opportunty to the farmers to use more modern technology. The postve mpact of credt on agrculture productvty was also confrmed by Sdhu et al. (2008), Sal and Carter (1996), Olagunju (2007), Zuber (1989), Bashr et al. (2007), Fayaz et al. (2006) and Abedullah et al. (2006). The gamma value assocated wth the varance of the techncal neffcency effect was 0.78 and sgnfcant at 0.01 percent probablty level. It ndcated that effect of techncal neffcency was the key element of the total varablty of output for the whole study area. V. CONCLUSION Due to the multfunctonal nature of agrculture sector, t has a multpler effect on naton's soco-economc and manufacturng framework and played a key role n the development of a naton. The mportance of rural fnancal market n mprovng the productvty of agrculture sector was recognzed n general. The provson of more adequate credt facltes enhanced and ensured tmely utlzaton of agrcultural nputs, new technologes adopton and provde an opportunty of techncal effcency achevement. For the rapd growth of agrculture sector new and modern technology adopton and ncreased use of better nputs were the key determnants. The need of fnance to cover the farmng expendtures could ether be fulflled by farmer s own savngs or through credt. In developng economes lke Pakstan, savngs among the small farmers are of neglgble amount and agrcultural credt appears as an essental nput for nvestment n agrculture (Iqbal et al., 2003). Consderng the dstnctve characterstcs of agrcultural credt, especally n developng natons, t was reasonable for the government to support rural and farmng sector development. To ncrease the growth and

12 160 Pakstan Economc and Socal Revew productvty of agrculture sector, the rural credt market should be developed through better and mproved polcy framework. Accordng to revewed studes, the farmng credt had sgnfcantly postve effect on the effcency of farmng sector and the mproved need of credt access was also confrmed here. The purpose of ths study was to provde the emprcal evdences of farmng sector effcency. Another objectve of the study was to suggest some polcy measures to enhance and mprove the effcency of rural fnancal sector n Punjab, Pakstan. The study utlzed the cross-sectonal survey data of 300 farmng households from Fasalabad dstrct of Punjab for the tme perod of , and estmated the farmng sector effcency. To estmate the effcency SFA was utlzed. It was nvestgated that the effcency score of total observed farmng households under SFA was The observed effcency scores ndcated that there was 16 percent neffcency n the observed farms. It was observed that educaton of the farmer, farmng experence, herd sze, cultural practces and the dummy varable of agrcultural credt was sgnfcantly and postvely affectng effcency of agrculture sector. The dummy varable of agrcultural credt took the hghest coeffcent value ndcatng that credt was the most nfluencng factor for farmng effcency. The household sze of the observed farmers, area operated, and the dummy varable for plant protecton measures were all the factors negatvely affectng the effcency of framng households. The sum of estmated elastctes showed that the farmers were operatng under decreasng returns to scale. VI. RECOMMENDATIONS The agrculture sector of Pakstan stll suffers from low productvty, expensve fnancal support to the farmers, neffcent market structure and mproper research. Thus, to develop farmng sector and to ncrease the farmng effcency t was recommended to enhance the accessblty of small and margnal farmer to formal agrcultural credt. Accordng to the results t was also suggested that loan for the lvestock should be enhanced. Thus, by provdng more credt for the purpose of lvestock would defntely enhance farmer s ncome and ultmately would reduce poverty.

13 AYAZ and HUSSAIN: Impact of Insttutonal Credt on Producton Effcency 161 REFERENCES Abedullah, Shahzad Kouser, Khald Mushtaq and Muhammad Mazhar (2006), Role of credt to enhance cotton producton n Punjab, Pakstan. Pakstan Journal of Agrcultural Scences, Volume 43(3-4), pp Adams, Dale W. and Delbert A. Ftchett (eds.) (1992), Informal Fnance n Low- Income Countres. Boulder, Colorado: Westvew Press. Agner, D., C. A. K. Lovell and P. Schmdt (1977), Formulaton and estmaton of stochastc fronter producton functon models. Journal of Econometrcs, Volume 6(1), pp Aleem, I. (1990), Imperfect nformaton, screenng, and the costs of nformal lendng: A study of rural credt market n Pakstan. The World Bank Economc Revew, Volume 4(3), pp Bashr, Muhammad Khald, Zulfqar Ahmad Gll, Sarfraz Hassan, Sultan Al Adl and Khuda Bakhsh (2007), Impact of credt dsbursed by commercal banks on the productvty of sugarcane n Fasalabad dstrct. Pakstan Journal of Agrcultural Scences, Volume 44(2), pp Coell, T. J., D. S. P. Rao and G. E. Battese (1998), An Introducton to Effcency and Productvty Analyss. Boston: Kluwer Academc Publshers. Ells, F. (1992), Agrcultural Polces n Developng Countres, 2nd edton. Wye Studes n Agrcultural and Rural Development. Cambrdge Unversty Press. FAO (1998), Agrcultural Fnance Revsted: Why? Food and Agrculture Organzaton, No. 1. Färe, R., S. Grosskopf and H. Lee (1990), A nonparametrc approach to expendture-constraned proft maxmzaton. Amercan Journal of Agrcultural Economcs, Volume 72(3), pp Farrell, M. J. (1957), The measurement of productve effcency. Journal of the Royal Statstcal Socety (Seres A: Statstcs n Socety), Volume 120(3), pp Fayaz, M., D. Jan, A. U. Jan and B. Hussan (2006), Effects of short term credt advanced by ZTBL for enhancement of crop productvty and ncome of growers. Journal of Agrcultural and Bologcal Scence, Volume 1(4), pp Feder, G., L. J. Lau, J. Y. Ln and X. Luo (1990), The relatonshp between credt and productvty n Chnese agrculture: A mcroeconomc model of dsequlbrum. Amercan Journal of Agrcultural Economcs, Volume 72(5), pp

14 162 Pakstan Economc and Socal Revew Iqbal, M., M. Ahmad and K. Abbas (2003), The mpact of nsttutonal credt on agrcultural producton n Pakstan. The Pakstan Development Revew, Volume 42(4), pp Komcha, H. H. (2007), Farm household economc behavour n mperfect fnancal markets. Ph.D. dssertaton, Swedsh Unversty of Agrcultural Scences, Uppasala. Malk, S. J. (1999), Poverty and Rural Credt: The Case of Pakstan. Pakstan Islamabad: Insttute of Development Economcs. Meeusen, W. and J. V. D. Broeck (1977), Effcency estmaton from Cobb-Douglas producton functons wth composed error. Internatonal Economc Revew, Volume 18(2), pp Olagunju, F. I. (2007), Impact of credt use on resource productvty of sweet potatoes farmers n Osun-State, Ngera. Journal of Socal Scences, Volume 14(2), pp Quresh, S. K. and A. Shah (1992), A crtcal revew of rural credt polcy n Pakstan. The Pakstan Development Revew, Volume 31(4), pp Sal, Maqbool H. and M. R. Carter (1996), Fnancal market effcency n an agraran economy: Mcroeconometrc analyss of the Pakstan Punjab. The Journal of Development Studes, Volume 32(5), pp Sdhu, R. S., K. Vatta and A. Kaur (2008), Dynamcs of nsttutonal agrcultural credt and growth n Punjab: contrbuton and demand-supply gap. Agrcultural Economcs Research Revew, Volume 21 (Conference), pp Zuber, H. A. (1989), Insttutonal credt and agrcultural development wthn the framework of balanced growth. Journal of Economc Development, Volume 15(1), pp