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Does nonagricultural labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam
Author(s) -
Stampini Marco,
Davis Benjamin
Publication year - 2009
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2009.00368.x
Subject(s) - agriculture , longitudinal data , economics , production (economics) , livestock , labour economics , agricultural economics , geography , demography , archaeology , sociology , forestry , macroeconomics
We examine the relationship between participation in nonagricultural labor activities and farming production decisions, focusing on the use of inputs. Using longitudinal data for Vietnam from 1993 to 1998, we find that households engaged in nonagricultural labor spend significantly more on seeds, services, hired labor, and livestock inputs. This is consistent with the hypothesis that nonagricultural labor income relaxes credit constraints to farming.