Causal nexus between agricultural credit rationing and repayment performance: A two-stage Tobit regression

IF 1.9 Q2 AGRICULTURE, MULTIDISCIPLINARY AIMS Agriculture and Food Pub Date : 2023-01-01 DOI:10.3934/agrfood.2023008
F. I. Olagunju, R. J. Adeojo, Wale Ayojimi, T. Awe, O. A. Oriade
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Abstract

The probability that the beneficiary would default on future payments poses a great risk to extending agricultural credit. Also, previous research on farmers' repayment of agricultural credit emphasized that a high default rate is a growing concern, thereby becoming a tall order for financial institutions to lend to farmers. Similarly, past studies accentuate an increasing focus on socio-economic characteristics as factors that explain the repayment rate. The nexus between repayment rates and credit rationing has not been well analyzed. The effect of credit rationing on repayment rate was therefore investigated. The study, therefore, investigates the causal effects of credit rationing on loan repayment performance using a structured questionnaire to elicit information from selected 240 respondents via a three-stage method of sampling technique, and the instrumental variable Tobit technique to analyze the effect of credit rationing on repayment performance. The result showed that the majority (70.83%) of the respondents are males, the mean age was 51 years with an average education year of 12.65. The result of instrumental variable Tobit regression confirmed the endogeneity of rationing rate (Wald test of exogeneity = Wald Chi2 (1) = 67.26; Prob > chi2 = 0.000) at a 1% level of statistical significance. The result with a Log-likelihood function (265.62459) revealed that the ration rate, among others, with coefficients of 0.4335, was a crucial factor in ascertaining the rate of repayment at various significant levels of the arable crop farmers in the research area. The key finding is that credit rationing did have a significantly positive influence on agricultural credit repayment. The research concluded that the significance of credit rationing in influencing the likelihood of repayment rate, points to the vital significance of adequacy in rationing borrowers.
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农业信贷配给与还款绩效的因果关系:一个两阶段Tobit回归
受益人未来付款违约的可能性对扩大农业信贷构成巨大风险。此外,之前对农民偿还农业信贷的研究强调,高违约率越来越令人担忧,因此金融机构向农民提供贷款成为一项艰巨的任务。同样,过去的研究强调越来越重视社会经济特征作为解释还款率的因素。还款率和信贷配给之间的关系还没有得到很好的分析。因此,研究了信贷配给对还款率的影响。因此,本研究采用三阶段抽样法对240名受访者进行结构化问卷调查,并采用工具变量Tobit技术分析信贷配给对贷款偿还绩效的影响,探讨信贷配给对贷款偿还绩效的因果关系。结果显示,受访者以男性居多(70.83%),平均年龄51岁,平均受教育年限为12.65年。工具变量Tobit回归结果证实了配给率的内生性(Wald检验的外生性= Wald Chi2 (1) = 67.26;probb > chi2 = 0.000),在1%的水平上具有统计学显著性。对数似然函数(265.62459)的结果表明,定量率是确定研究区耕地农民各显著水平还款率的关键因素,其系数为0.4335。关键发现是信贷配给确实对农业信贷偿还有显著的积极影响。研究得出了信贷配给对还款率可能性影响的重要意义,指出了充足性对借款人配给的重要意义。
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来源期刊
AIMS Agriculture and Food
AIMS Agriculture and Food AGRICULTURE, MULTIDISCIPLINARY-
CiteScore
3.70
自引率
0.00%
发文量
34
审稿时长
8 weeks
期刊介绍: AIMS Agriculture and Food covers a broad array of topics pertaining to agriculture and food, including, but not limited to:  Agricultural and food production and utilization  Food science and technology  Agricultural and food engineering  Food chemistry and biochemistry  Food materials  Physico-chemical, structural and functional properties of agricultural and food products  Agriculture and the environment  Biorefineries in agricultural and food systems  Food security and novel alternative food sources  Traceability and regional origin of agricultural and food products  Authentication of food and agricultural products  Food safety and food microbiology  Waste reduction in agriculture and food production and processing  Animal science, aquaculture, husbandry and veterinary medicine  Resources utilization and sustainability in food and agricultural production and processing  Horticulture and plant science  Agricultural economics.
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