Does credit constraint matter for technical efficiency, technological shifts, and profitability of flower growers? An empirical study

Autor: Sandip Mitra, Md. Rashid Asef Dipto, Yasin Ibrahim Ankon
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: Cogent Economics & Finance, Vol 12, Iss 1 (2024)
Druh dokumentu: article
ISSN: 23322039
2332-2039
DOI: 10.1080/23322039.2024.2399958
Popis: This study aims to investigate the variations in efficiency, technology gap, and profitability of flower producers depending on their credit constraint position. A total of 160 flower farmers have been selected from Bangladesh by using a multistage sampling technique. Meta-frontier Data Envelopment Analysis (DEA) is employed to estimate the efficiency differences and technological gaps depending on the credit constraint situation. At the same time, the Tobit regression model is used to estimate the factors influencing the meta-technical efficiency of flower farmers. Profitability differences depending on the credit constraint situation are identified using the gross margin and benefit cost ratio. The mean meta-technical efficiency for Marigold farmers is highest when unconstrained (0.73) and lowest when credit is constrained (0.64) relative to the meta-frontier, which indicates output could be increased by 27 and 36%, respectively, without increasing input. On the other side, the efficiency of credit-unconstrained rose farmers is slightly higher than that of constrained rose farmers. In addition, credit-constrained marigold farmers achieve the lowest technological gap ratio (0.64) compared to credit-unconstrained farmers. Sociodemographic and farm characteristics such as education, source of seed, land tenure, farm area, and age have a significant positive impact, while earning family members, types of flowers, and credit constraints have a significant negative effect on the technical efficiency of flower farmers. The profitability of credit-unconstrained marigold and rose farmers is higher than that of credit-constrained farmers. Facilitating the loan application process, easing the pre-conditions of loan acceptance, and adjusting the repayment schedule help to remove the credit-constrained situation.
Databáze: Directory of Open Access Journals
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