The impact of access to finance in boosting agricultural performance of small and medium farmers: Literature review

Abubakar Mayaki, Madya Kadzrina binti Abdul Kadir, Emy Ezura A. Jalil

Abstract


The study proposes a model that shows the moderating effect of managerial competency on the relationship between access to finance and agricultural performance. After a critical review of the relevant literature, the proposed model was developed. From the model we argue that access to finance has a direct impact on agricultural performance, but the impact will be stronger when managerial competency is put into consideration by the small and medium farmers. Farmers who possess the needed managerial competency have the opportunity to achieve a competitive edge over their competitors.


Keywords


Access to finance, agricultural performance, small and medium farmers.

Full Text:

PDF

References


Adeola, O., & Ikpesu, F. (2016). An empirical investigation of the impact of bank lending on agricultural output in Nigeria : a ... an empirical investigation of the impact of in Nigeria : a Vector autoregressive (VAR) approach. In Proceedings of the Australia-Middle East Conference on Business and Social Sciences (pp. 1–13).

Adjognon, S. G., Liverpool-Tasie, L. S. O., & Reardon, T. A. (2017). Agricultural input credit in Sub-Saharan Africa: Telling myth from facts. Food Policy, 67, 93–105. https://doi.org/10.1016/j.foodpol.2016.09.014

Ahmad, N., Jan, I., Ullah, S., & Pervez, S. (2015). Impact of agricultural credit on wheat productivity in District Jhang, Pakistan. Sarhad Journal of Agriculture, 31(1), 65–69. https://doi.org/10.1002/em

Ammani, A. A. (2012). An investigation into the relationship between agricultural production and formal credit supply in Nigeria. International Journal of Agriculture and Forestry, 2(1), 46–52. https://doi.org/10.5923/j.ijaf.20120201.08

Ayaz, S., & Hussain, Z. (2011). Impact of institutional credit on production efficiency of farming sector: A case study of District Faisalabad. Pakistan Economics and Social Review, 49(2), 149–162.

Chandio, A. A., Magsi, H., Rehman, A., Ghulam, J., & Sahito, J. G. M. (2017). Types , sources and importance of agricultural credits in Pakistan. Journal of Applied Environmental and Biological Sciences, 7(3), 144–149.

Chandio, A. A., Yuansheng, J., Sahito, J. G. M., & Larik, S. A. (2016). Impact of formal credit on agricultural output: Evidence from Pakistan. African Journal of Business Management, 10(8), 162–168. Retrieved from http://www.academicjournals.org/AJBM

Chisasa, J., & Makina, D. (2015). Bank credit and agricultural output in South Africa: Cointegration, short run dynamics and causality. Journal of Applied Business Research, 31(2), 489–500.

Ganbold, B. (2008). Improving access to finance for SME: International good experiences and lessons for Mongolia. Institute of Developing Economies, 438, 2–69.

Isoto, R. E., Sam, A., & Kraybill, D. S. (2016). Uninsured health shocks and agricultural productivity among rural households: The mitigating role of micro-credit. Journal of Development Studies, 53(12), 1–17. https://doi.org/10.1080/00220388.2016.1262027

Khandker, S. R., & Koolwal, G. B. (2015). How has microcredit supported agriculture? Evidence using panel data from Bangladesh. Agricultural Economics (United Kingdom), 47(2), 157–168. https://doi.org/10.1111/agec.12185

Kim, C., & Bettis, R. A. (2014). Cash is surprisingly valuable as a strategic asset. Strategic Management Journal, 35(13), 2053–2063. https://doi.org/10.1002/smj.2205

Kumar, A. (2005). Measuring financial access through users’ surveys core concepts, questions and indicators. Washington DC and London, 14, 1–54.

Kumar, Anjani, Mishra, A. K., Saroj, S., & Joshi, P. K. (2017). Institutional versus non-institutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey. Economic Systems, 41(3), 420–432. https://doi.org/10.1016/j.ecosys.2016.10.005

Lecuona, J. R., & Reitzig, M. (2014). Knowledge worth having in “EXCESS”: The value of tacit and firm-specific human resource slack. Strategic Management Journal, 35, 954–973. https://doi.org/10.1002/smj

Martey, E., Wiredu, A. N., Etwire, P. M., & Kuwornu, J. K. (2019). The impact of credit on the technical efficiency of maize-producing households in Northern Ghana. Agricultural Finance Review, 79(3), 304–322.

Noonari, S., Wagan, H., Memon, I. N., Burirro, R. A., & Bijarani, A. A. (2016). Impact of zarai taraqiati bank LTD ( ZTBL ) credit on agricultural producitivity in Sindh Pakistan. Industrial Engineering Letters, 6(1), 25–37.

Noonari, S., Wagan, H., Memon, I. N., Burirro, R. A., & Birjarani, A. A. (2016). Impact of zarai taraqiati bank LTD ( ZTBL ) credit on agricultural producitivity in Sindh Pakistan, 6(1), 25–37.

Ololade, R. A., & Olagunju, F. I. (2013). Determinants of access to credit among rural farmers in Oyo State, Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, 13(2), 16–22. Retrieved from http://www.afd.fr/webdav/site/afd/shared/PUBLICATIONS/RECHERCHE/Scientifiques/A-savoir/14-VA-A-Savoir.pdf

Paeleman, I., & Vanacker, T. (2015). Less is more , or not ? On the interplay between bundles of slack resources , firm performance and firm survival. Journal of Management Studies, 56(2).

Peachy, S., & Roe, A. . (2006). Access to finance: What does it mean and how do savings banks foster access. WSBI, World Savings Banks Institute.

Pradabwong, J., Braziotis, C., Tannock, J. D. T., & Pawar, K. S. (2017). Business process management and supply chain collaboration: effects on performance and competitiveness. Supply Chain Management: An International Journal, 22(2), 107–121. https://doi.org/10.1108/SCM-01-2017-0008

Risilia, D., Pagria, I., Tabaku, I., & Kadiu, E. (2013). The role of microcredit institutions of agriculture sector in Albania. Journal of Food, Agriculture and Environment, 11(1), 353–356.

Roberts, L. C., Otieno, D. J., & Nyikal, R. A. (2017). An analysis of determinants of access to and use of credit by smallholder farmers in Suakoko District, Liberia. African Journal of Agricultural Research, 12(24), 2093–2100. https://doi.org/10.5897/AJAR2017.12386

Solomon, E., Juliana, I., & Antonia, A. I. (2016). Analysis of the effects of microfinance banks loans on the livelihood of small-holder farmers in Delta state , Nigeria. Economics Affairs, 61(3), 381–390. https://doi.org/10.5958/0976-4666.2016.00049.8

Ugwumba, C. O. A., & Omojola, J. T. (2013). Determinants of loan repayment of livestock farmers under Agricultural Credit Guarantee Scheme (ACGS) in Etche Local Government Area of Rivers State, Nigeria. Agricultural Advances, 2(6), 165–172.

Vanacker, T., Collewaert, V., & Zahra, S. A. (2017). Slack resources, firm performance and the institutional context: Evidence from privately held European firms. Strategic Management Journal, 38(6), 1305–1326. https://doi.org/10.1016/S0740-5472(96)90021-5


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.