Impact of Agricultural Credit on Productivity

Abstract

The aim of this article is to analyze the impact of agricultural credit on agricultural productivity in the Congo. This work finds its affiliation in the neoclassical theory developed by Gurley and Shaw (1967). Then McKinnon (1973) to achieve this objective, we used the ESR model estimated by the maximum likelihood method to take account of selectivity and endogeneity problems. The results obtained show that, on average, the effect of agricultural credit on agricultural productivity is 92.2%; in other words, the majority of farmers who have obtained agricultural credit have a high probability of improving their productivity. These results also show that literacy rate, group membership and age influence access to agricultural credit. These results confirm the hypothesis formulated in this work, insofar as they support the view that access to agricultural credit increases productivity.