The impact of credit constraints on the adoption of hybrid maize in Malawi

Simtowe, F and Zeller, M and Diagne, A (2009) The impact of credit constraints on the adoption of hybrid maize in Malawi. Review of Agricultural and Environmental Studies, 90 (1). pp. 5-22.

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Abstract

This paper investigates the impact of credit constraints on the adoption of hybrid maize among rural households in Malawi. To address the endogenous and binary nature of the household's credit constraints status, we employ a treatment-effects model to consistently estimate the effect of credit constraints. Results reveal that after effectively correcting for endogeneity, credit constraints have a negative and significant effect on the amount of land allocated to hybrid maize. Results also show that farmers with larger land holdings allocate more land to hybrid maize. Although less likely to report credit constraints, older farmers allocate less land to hybrid maize than younger farmers. These findings suggest that there is scope for increasing the cultivation of hybrid maize in Malawi if credit is targeted at younger farmers that are credit-constrained.

Item Type: Article
Divisions: UNSPECIFIED
CRP: UNSPECIFIED
Subjects: Others > Maize
Depositing User: Library ICRISAT
Date Deposited: 27 Aug 2011 06:26
Last Modified: 03 Jan 2012 05:51
URI: http://oar.icrisat.org/id/eprint/595
Official URL: http://www.raestud.eu/pdf/005_022.pdf
Projects: UNSPECIFIED
Funders: UNSPECIFIED
Acknowledgement: UNSPECIFIED
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