How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model
Agricultural credit and subsidies are crucial policies for improving agricultural productivity. The main objective of this study is to examine the effects of agricultural credit and subsidies on agricultural productivity in Ethiopia from 1990 to 2021, taking into account both short- and long-term re...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Food & Agriculture |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311932.2024.2329118 |
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| author | Lemane Gebeyehu Amsalu Bedemo |
| author_facet | Lemane Gebeyehu Amsalu Bedemo |
| author_sort | Lemane Gebeyehu |
| collection | DOAJ |
| description | Agricultural credit and subsidies are crucial policies for improving agricultural productivity. The main objective of this study is to examine the effects of agricultural credit and subsidies on agricultural productivity in Ethiopia from 1990 to 2021, taking into account both short- and long-term relationships. We obtain secondary data from the Food and Agriculture Organization and the World Bank databases. The autoregressive distributive lag model to co-integration is applied to estimate the long- and short-run effects of agricultural credit and subsidies on productivity. The bound test results indicate that the variables have a long-term relationship. The findings revealed that in the short-run, credit provision affected productivity negatively but subsidies to agricultural sector showed a positive significant effect. However, in the long run, the effect of credit turned out to be positive and significant, whereas subsidies affected productivity negatively. It is recommended that the government design and implement policy measures that create better access to agricultural financing to enjoy long-run improvements in productivity. Similarly, the government should offer subsidies to the agricultural sector only during short-run periods and need to lift them gradually in the long run as their provision retards productivity in the long run. |
| format | Article |
| id | doaj-art-3b491ee738374040aaa77af2ce6bf026 |
| institution | OA Journals |
| issn | 2331-1932 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Food & Agriculture |
| spelling | doaj-art-3b491ee738374040aaa77af2ce6bf0262025-08-20T01:58:51ZengTaylor & Francis GroupCogent Food & Agriculture2331-19322024-12-0110110.1080/23311932.2024.2329118How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl modelLemane Gebeyehu0Amsalu Bedemo1Department of Agricultural Economics and Agribusiness Management, Jimma University College of Agriculture and Veterinary Medicine, Jimma, EthiopiaDepartment of Policy Studies, Ethiopian Civil Service University, Addis Ababa, EthiopiaAgricultural credit and subsidies are crucial policies for improving agricultural productivity. The main objective of this study is to examine the effects of agricultural credit and subsidies on agricultural productivity in Ethiopia from 1990 to 2021, taking into account both short- and long-term relationships. We obtain secondary data from the Food and Agriculture Organization and the World Bank databases. The autoregressive distributive lag model to co-integration is applied to estimate the long- and short-run effects of agricultural credit and subsidies on productivity. The bound test results indicate that the variables have a long-term relationship. The findings revealed that in the short-run, credit provision affected productivity negatively but subsidies to agricultural sector showed a positive significant effect. However, in the long run, the effect of credit turned out to be positive and significant, whereas subsidies affected productivity negatively. It is recommended that the government design and implement policy measures that create better access to agricultural financing to enjoy long-run improvements in productivity. Similarly, the government should offer subsidies to the agricultural sector only during short-run periods and need to lift them gradually in the long run as their provision retards productivity in the long run.https://www.tandfonline.com/doi/10.1080/23311932.2024.2329118agricultural creditagricultural subsidyagricultural productivityEthiopiamanuel tejada, universidad de sevilla, spainEconomics |
| spellingShingle | Lemane Gebeyehu Amsalu Bedemo How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model Cogent Food & Agriculture agricultural credit agricultural subsidy agricultural productivity Ethiopia manuel tejada, universidad de sevilla, spain Economics |
| title | How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model |
| title_full | How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model |
| title_fullStr | How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model |
| title_full_unstemmed | How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model |
| title_short | How agricultural credit and subsidies impact agricultural productivity in Ethiopia: Empirical evidence using ardl model |
| title_sort | how agricultural credit and subsidies impact agricultural productivity in ethiopia empirical evidence using ardl model |
| topic | agricultural credit agricultural subsidy agricultural productivity Ethiopia manuel tejada, universidad de sevilla, spain Economics |
| url | https://www.tandfonline.com/doi/10.1080/23311932.2024.2329118 |
| work_keys_str_mv | AT lemanegebeyehu howagriculturalcreditandsubsidiesimpactagriculturalproductivityinethiopiaempiricalevidenceusingardlmodel AT amsalubedemo howagriculturalcreditandsubsidiesimpactagriculturalproductivityinethiopiaempiricalevidenceusingardlmodel |