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Agricultural Credit Programs and Production Efficiency: An Analysis of Traditional Farming in Southeastern Minas Gerais, Brazil
Author(s) -
Taylor Timothy G.,
Drummond H. Evan,
Gomes Aloisio T.
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241655
Subject(s) - allocative efficiency , subsidy , productivity , agriculture , production (economics) , agricultural economics , agricultural science , business , agricultural productivity , production efficiency , economics , economic growth , geography , environmental science , market economy , neoclassical economics , archaeology , macroeconomics , mechanical engineering , engineering
Abstract Over the past two decades the effectiveness of subsidized credit programs in improving the productivity of traditional farmers in developing countries has been extensively debated. This study analyzes the effects of one such program—PRODEMATA—on the technical and allocative efficiency of traditional farmers in Minas Gerais, Brazil. The empirical results suggest that PRODEMATA has had no effect on technical efficiency and a slightly negative effect on allocative efficiency.