Does off-farm labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam

Type Report
Title Does off-farm labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam
Author(s)
Publication (Day/Month/Year) 2008
URL http://econpapers.repec.org/RePEc:iza:izadps:dp3403
Abstract
We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non-agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.

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