Economía Agroalimentaria

Do off-farm labor activities relax credit constraints in farming? Evidence from longitudinal data for Vietnam

Año: 2009
Autor(es): M. Stampini, B. Davis
We examine the relationship between participation in non-agricultural labor activities and farming production decisions, focusing on the use of inputs. In particular, we are interested in the hypothesis that income from non-agricultural labor relaxes credit constraints. Using longitudinal data for Vietnam from 1993-98, we find that households participating in non agricultural labor activities, consistently with our hypothesis, spend significantly more on seeds, services, hired labor and livestock inputs.
JEL codes: J43, Q12