Measuring the Farm Level Impact of Agricultural Loans in Low Income Countries: A Review Article
MetadataShow full item record
Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 602
Billions of dollars are spend worldwide on agricultural credit programs, yet few comprehensive evaluations exist. This paper reviews several methodological issues involved in measuring the farm level impact of agricultural loans. Fungibility of loan funds, farm-household interdependence, and the attribution problem are three issues which are reviewed in detail. A farm resource allocation model is used to analyze expected impact of loans on the farm. Recent descriptive, econometric and mathematical programming studies of loan impact in low income countries are reviewed relative to these issues and the resource allocation model. Suggestions are given for improved research and data collection.