Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil

Does Credit Influence Fertilizer Intensification in Rice Farming? Empirical Evidence from Côte D’Ivoire

“…However, by using a two-stage least squares (2SLS) model to overcome the endogeneity problem, Abdallah [31] found a one-way causal relation between agricultural technologies' adoption and access to credit in which credit positively influences agricultural technologies' adoption. In Brazil, the findings of Carrer et al [19] reinforced the hypothesis of endogeneity between rural credit access and agricultural technologies' adoption by using a three-stage least squares (3SLS) to estimate an SES.…”

“…We examine the determinants of FI and rice farmers' access to credit by applying a simultaneous equation system (SES). This approach is similar to that used by Carrer et al [19] in different contexts.…”

“…The adoption of new agricultural technologies leads not only to increasing productivity and food security, but also enhances agricultural development, while reducing poverty [7]. However, new agricultural technologies' adoption may demand high investment and increase farm operational costs [19]. Therefore, the availability of financial resources is a determining factor in the farmers' decision process [11,14].…”

“…Some previous studies have assumed that agricultural technologies' adoption and credit are mutually dependent [19,31]. This means that access to credit could lead to the adoption of agricultural technologies, and the adoption of technologies could also influence access to credit.…”

“…Although relevant studies, e.g., [11,19,25,26], in different regions of the world, have established the relationship between credit and agricultural technologies' adoption, it is imperative to recall that no empirical study in Côte d'Ivoire has investigated this issue, to the best of our knowledge. This study intends to fill this gap by focusing mainly on the link between AC and FI in paddy rice production.…”