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The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in...
Persistent link: https://www.econbiz.de/10011083318
We partnered with a micro-lender in Mali to randomize credit offers at the village level. Then, in no-loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with...
Persistent link: https://www.econbiz.de/10011083397
In an experiment providing fertilizer grants to women rice farmers in Mali, we found that women who received fertilizer … increased both the quantity of fertilizer they used on their plots and complementary inputs such as herbicides and hired labor … level of output, we find no evidence that profits increased. Our results suggest that fertilizer's impact on profits is …
Persistent link: https://www.econbiz.de/10011083496