--

2 (1) 2012

Factors affecting paddy farmers to procure farm inputs in debt


Author - Affiliation:
Phan Ba Ngoc Phuong - program between Solvay Brussels School and HCMC Open University , Vietnam
Nguyen Minh Ha - HCMC Open University , Vietnam
Corresponding author: Nguyen Minh Ha - ha.nm@ou.edu.vn

Abstract
The aim of this study deals with reasons that almost paddy farmers in Mekong River Delta have to procure farm inputs in debt. With 216 households interviewed by questionnaires in An Giang province and using regression model, the study has found that the lack of capital for rice production and the cost of farm inputs are key elements to impact positively on paddy farmers who procure inputs in debt. Furthermore, householder’s paddy growing experience, rice selling price, residential area, and value of the property affect negatively inputs procurement in debt of rice farmers. In addition, household size, farm size, and interest of purchase of inputs in debt influence positively on rice farmers when they purchase inputs on credit.


Full Text:
PDF

References

Andrew, G. (2001) “Paddy marketing and rural livelihoods in Bangladesh” Natural Resource Institute, it can be download at http://www.researchintouse.com/nrk/RIUinfo/outputs/R7496_FTR.pdf.


Albert, A., and Franco, M. (1963), “The Life Cycle Hypothesis of Saving: Aggregate Implications and Tests”. The American Economic Journal, Vol. 53, No. 1, Part 1, pp. 55-84.


Armit, P. (2010), “Aspects of Rural Households’ Debt in India: Strategic Action to Minimize Incidence of Informal Debt”. It can be downloaded from website http://www.microfinancegateway.org/gm/document1.9.47713/ARP_Rural_Indebtedness.pdf.


Barba, A., and Pivetti, M. (2008), “Rising Household Debt: Its Causes and Macroeconomic implications – a long period analysis”. Cambridge Journal of Economics, Vol. 33, pp. 113-137.


Barnes, S., and Young, G. (2003), “The Rise in US Household Debt: Assessing Its Causes and Sustainability”. Bank of England, it can be downloaded at website http://www.bankofengland.co.uk/publications/workingpapers/wp206.pdf.


Bridge, S., and Disney, R. (2004), “Use of Credit and Arrear on Debt among Low Income Families in the United Kingdom”. Fiscal Studies Journal, Vol. 25, No. 1, pp. 1-25.


Gantinah, W. (2007) “Structural Model Approach of Household Debt” Bank of Indonesia. It can be downloaded at website http://www.bi.go.id/web/en/Publikasi/Perbankan+dan+Stabilitas+Keuangan/Riset+Sistem+Keuangan/structuralmodel.htm.


Helena, P, Ricarda, S, Devlin, K. and Lucy, M. (2003), “Hungry Corporations: Transnational Biotech Companies Colonise the Food Chain” Zed Book Publishing, London.


Isabelle, G, Marc, R, Venkatasubramanian and Santosh, K. (2011), “The Social Meaning of Over-indebtedness and Creditworthiness in the Context of Poor Rural South India Households” Rural Microfinance and Employment Project, Université Paris 1 Sorbonne, France.


John, W, Richard, W. and Prudence, C. (2004), “An empirical Model of Household Arrears” It can be downloaded at website http://www.ecri.be/new/system/files/36+empirical_model_household_arrears.pdf.


Ke, C., C. and Mali, C. (2008), “What Drives Household Borrowing and Credit Constraints.”. International Monetary Fund (2008), it can be downloaded at website http://www.imf.org/external/pubs/ft/wp/2008/wp08202.pdf.


Le Thanh Loan, Dang Hai Phuong and Vo Hung (2006) “Cashew nuts supply chains in Vietnam: A case study in Daknong and Binh Phuoc provinces, Vietnam” It can be seen at http://www.socialforestry.org.vn/Document/DocumentEn/Cashew%20nut%20Vietnam.En%20%28Full%20document%29.pdf.


Lucas, R., E. and Stokey, N., L. (1987), “Money and Interest in a Cash in Advance Economy” The Journal of Econometric, 55(3), pp. 441-513.


Michael, J.A. (2006), “Understanding Poverty from Multiple Social Science Perspectives”. University of California, United state.


Norhana, E., and Toh, G., H. (2009), “Household Debt in Malaysia” It can be downloaded at website http://www.bis.org/publ/bppdf/bispap46l.pdf.


Prabhakar, N. (2007) “The impact of the agreement on agriculture on small rice farmer in Asia” Pesticide Action Network and the Pacific Publishing, Malaysia


Pujari, Y., D. (2011), “Rural Indebtedness: Causes and Consequences”. Indian Streams Research Journal, Vol. 1, Issue 1/Febuary 2011, pp. 124-127.


Rosanna, B. (2004) “Case study collection on debt” It can be download at website http://www.womynsagenda.org/publications/Case%20Study%20Collection%20on%20Debt.pdf.


Rweyemanu, D., C, Kimaro, M., P. and Urassa, O., M. (2003), “Assessing MicroFinance Services in Agricultural Sector Development: A Case Study of Semi Formal Financing Institutions in Tanzania”. It can be downloaded from website http://www.microfinancegateway.org/p/site/m/template.rc/1.9.29415/.


Singh, L. (2008), “Rural Finance and Farmers‘ Indebtedness: A study of Two Punjabs” it can be downloaded at http://mpra.ub.uni-muenchen.de/11195/1/MPRA_paper_11195.pdf.


Shamika, R. (2003) “Borrowing Behavior of Rural Household” New York University, United state.


Ted, K., B. (2006), “Theories of Poverty and Anti - Poverty Programs in Community Development” Rural Poverty Research Center, United state.


Phạm Trí Cao và Vũ Minh Châu (2010), “Kinh Tế Lượng Ứng Dụng” Nhà Xuất Bản Thống Kê, Việt Nam.


Nguyễn Minh Hà và Nguyễn Hữu Tịnh (2010), “Các Yếu Tố Tác Động đến Tình Trạng Nghèo của Hộ Gia Đình ở Nông Thôn (Nghiên Cứu Trường Hợp ở Tỉnh Bình Phước)”. Tạp Chí Khoa Học, số (3) (18) – 2010, Đại Học Mở Tp. HCM.


Nguyễn Trọng Hoài; Phùng Thanh Bình; Nguyễn Khánh Duy (2009), “Dự báo và Phân Tích Dữ Liệu trong Kinh Tế và Tài Chính” Nhà Xuất Bản Thống Kê, Việt Nam.


http://www.gso.gov.vn/default.aspx?tabid=417&idmid=4&ItemID=11138.


http://www.gso.gov.vn/default_en.aspx?tabid=483&idmid=4&ItemID=11148.


http://www.thesaigontimes.vn/home/diendan/ykien/49574/.



DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.2.1.77.2012
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.