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Theoretical and Applied Economics
No. 10 / 2011 (563)

Impact of Institutional Credit on Agricultural Output: A Case Study of Pakistan

Nawaz AHMAD
National College of Business Adrministration & Economics, Lahore

Abstract. This paper looks at the role of credit to agricultural sector in Pakistan. It begins with an analysis of credit as indirect input to agricultural sector. It helps the farmers to buy modern and expensive inputs such as tractor, tubewel, seeds, fertilizers etc. The study covers the period from 1974 to 2008. The empirical findings show that there is a significant role of credit in agriculture sector.

Keywords: Taccavi loans; farm mechanization; stationarity; cointegration; Granger causality.

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