Heterogeneous regional effects of rural credit on agricultural production in Brazil

Abstract Access to rural credit has been persistently heterogeneous across Brazilian regions over time. This work aimed to estimate the regional effects of rural credit on agricultural production due to the heterogeneity observed in access to credit. Based on data from the 2017 Agricultural Census...

Full description

Bibliographic Details
Main Authors: Diogo Brito Sobreira, Francisco José Silva Tabosa, Edward Martins Costa, Ahmad Saeed Khan
Format: Article
Language:English
Published: Sociedade Brasileira de Economia e Sociologia Rural 2024-04-01
Series:Revista de Economia e Sociologia Rural
Subjects:
Online Access:http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032024000400208&lng=en&tlng=en
_version_ 1797216764822552576
author Diogo Brito Sobreira
Francisco José Silva Tabosa
Edward Martins Costa
Ahmad Saeed Khan
author_facet Diogo Brito Sobreira
Francisco José Silva Tabosa
Edward Martins Costa
Ahmad Saeed Khan
author_sort Diogo Brito Sobreira
collection DOAJ
description Abstract Access to rural credit has been persistently heterogeneous across Brazilian regions over time. This work aimed to estimate the regional effects of rural credit on agricultural production due to the heterogeneity observed in access to credit. Based on data from the 2017 Agricultural Census and climate variables, the effect of rural credit was estimated by standard regressions, combined with the entropy balancing technique. The results show positive and significant effects of rural credit on Brazilian agricultural production, even after controlling for observed covariates. This result was consistent even after balancing the covariates with regard to entropy. The effect of rural credit proved to be heterogeneous across Brazilian regions, being positive and significant for regions with greater access to rural credit and statistically null in less credit-intensive regions. Furthermore, estimates show that technical assistance is an important transmission mechanism of the rural credit effect.
first_indexed 2024-04-24T11:51:09Z
format Article
id doaj.art-61d1908e5c104fb084d9a7ed9a3a62b3
institution Directory Open Access Journal
issn 1806-9479
language English
last_indexed 2024-04-24T11:51:09Z
publishDate 2024-04-01
publisher Sociedade Brasileira de Economia e Sociologia Rural
record_format Article
series Revista de Economia e Sociologia Rural
spelling doaj.art-61d1908e5c104fb084d9a7ed9a3a62b32024-04-09T07:47:20ZengSociedade Brasileira de Economia e Sociologia RuralRevista de Economia e Sociologia Rural1806-94792024-04-0162410.1590/1806-9479.2023.271082Heterogeneous regional effects of rural credit on agricultural production in BrazilDiogo Brito Sobreirahttps://orcid.org/0000-0002-6840-754XFrancisco José Silva Tabosahttps://orcid.org/0000-0003-1280-8907Edward Martins Costahttps://orcid.org/0000-0002-9187-8534Ahmad Saeed Khanhttps://orcid.org/0000-0002-4079-7574 Abstract Access to rural credit has been persistently heterogeneous across Brazilian regions over time. This work aimed to estimate the regional effects of rural credit on agricultural production due to the heterogeneity observed in access to credit. Based on data from the 2017 Agricultural Census and climate variables, the effect of rural credit was estimated by standard regressions, combined with the entropy balancing technique. The results show positive and significant effects of rural credit on Brazilian agricultural production, even after controlling for observed covariates. This result was consistent even after balancing the covariates with regard to entropy. The effect of rural credit proved to be heterogeneous across Brazilian regions, being positive and significant for regions with greater access to rural credit and statistically null in less credit-intensive regions. Furthermore, estimates show that technical assistance is an important transmission mechanism of the rural credit effect.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032024000400208&lng=en&tlng=enrural credittechnical assistanceagricultural productionBrazil
spellingShingle Diogo Brito Sobreira
Francisco José Silva Tabosa
Edward Martins Costa
Ahmad Saeed Khan
Heterogeneous regional effects of rural credit on agricultural production in Brazil
Revista de Economia e Sociologia Rural
rural credit
technical assistance
agricultural production
Brazil
title Heterogeneous regional effects of rural credit on agricultural production in Brazil
title_full Heterogeneous regional effects of rural credit on agricultural production in Brazil
title_fullStr Heterogeneous regional effects of rural credit on agricultural production in Brazil
title_full_unstemmed Heterogeneous regional effects of rural credit on agricultural production in Brazil
title_short Heterogeneous regional effects of rural credit on agricultural production in Brazil
title_sort heterogeneous regional effects of rural credit on agricultural production in brazil
topic rural credit
technical assistance
agricultural production
Brazil
url http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032024000400208&lng=en&tlng=en
work_keys_str_mv AT diogobritosobreira heterogeneousregionaleffectsofruralcreditonagriculturalproductioninbrazil
AT franciscojosesilvatabosa heterogeneousregionaleffectsofruralcreditonagriculturalproductioninbrazil
AT edwardmartinscosta heterogeneousregionaleffectsofruralcreditonagriculturalproductioninbrazil
AT ahmadsaeedkhan heterogeneousregionaleffectsofruralcreditonagriculturalproductioninbrazil