The Effect of Bank Creditson Increasing the Wheat Production

The Effect of Bank Creditson Increasing the Wheat Production



Tahereh Taj



Financial requirements of the farming sector have
increased tremendously over the last few decades due to theextended use
of fertilizers, biocides, improved seeds, mechanization etc. this study
was performed to evaluation of bank credit effects on increasing the
wheat production. Endogenous Switching regression was performed to
analysis; it is assumed that farmers have financial constraints. So that
increased liquidity, be converted an increase in the funds immediately.
The supply function (Gi) to be introduced that it is a function of the
amount of the loan and other variables. The first groups of farmers have
used credit for their farming activities and the second group of
farmers who have not used credit for their farming activities.analysis
of variances showed that there were significant differences between
groups; groups included those who have not used facilities (G1),
Individuals who have used only micro facilities (G2), Individuals who
have used only the duty credits (G3), finally, people who have used both
types of facilities (G4). G2, G3 and G4 showed higher benefit of
production in compare to production benefit of G1. Highest to lowest
production benefits were obtained by G4≥G3>G2>G1. 



10.22161/ijaers/3.10.28



http://ijeab.com/upload_document/issue_files/28%20IJEAB-OCT-2016-1-The%20Effect%20of%20Bank%20Creditson%20Increasing%20the%20Wheat%20Production.pdf



http://ijeab.com/submit-paper/

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