Refine your search
Collections
Journals
Year
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Waskito, Jaka
- Role of Microcredit and Technology Adoption in Sustaining Farmers' Welfare
Abstract Views :246 |
PDF Views:1
Authors
Joko Mariyono
1,
Gunistiyo
1,
Jaka Waskito
2,
Sumarno
2,
M. Fajar Nurwildani
3,
Apri Kuntariningsih
4
Affiliations
1 Department of Magister Management, Postgraduate Programme, University of Pancasakti, ID
2 Faculty of Economics, University of Pancasakti, ID
3 Industrial Engineering Study Programme, Faculty of Engineering, University of Pancasakti, ID
4 Faculty of Social and Political Sciences, University of Pancasakti, ID
1 Department of Magister Management, Postgraduate Programme, University of Pancasakti, ID
2 Faculty of Economics, University of Pancasakti, ID
3 Industrial Engineering Study Programme, Faculty of Engineering, University of Pancasakti, ID
4 Faculty of Social and Political Sciences, University of Pancasakti, ID
Source
Journal of Rural Development, Vol 38, No 1 (2019), Pagination: 102-122Abstract
Poverty in rural areas of Indonesia is still a persistent problem. This paper analyses a virtuous circular causal relation among microcredit,agronomic technology and rural prosperity, and to determine factors affecting farmers to access microcredit and adopt technology in Indonesia. Data for this study were compiled from a survey that interviewed 220 of farm households. Samples of the study were randomly selected from chilli farming community in three regions of Java during 2013-2014. This paper employed a structural equation modelling, which enables to estimate a model of circular causal-interrelations. Microcredit provided positive direct and indirect impacts on rural prosperity. Indirect impact of microcredit was due to mediation of technology adoption. Farmers' decision to access microcredit and adopt technology was determined by farmers’ characteristics and agribusiness environment via both exogenous and endogenous manners. Microcredit and technology have been able to secure a virtuous circle of enhancing farmers’ wellbeing. The virtuous circle was to augment farmers’ business in terms of larger farming size. Policy makers should introduce more advanced technology and provide credit facility at the same time to ensure sustained economic development in rural areas.Keywords
Agricultural Finance, Intensive Farming, Virtuous Circle, Structural Equation Modelling.
References
- Agbaeze, E.K. and Onwuka I.O. (2014), Microfinance Banks and Rural Development: The Nigeria Experience, International Journal of Rural Management, Vol. 10 No. 2, pp. 147-171.
- Akotey, J.O. and Adjasi, C.K.D. (2016), Does Microcredit Increase Household Welfare in the Absence of Microinsurance?, World Development, Vol. 77, pp. 380-394.
- Alavifar, A. Karimimalayer, M. and Anuar, M.K. (2012), Structural Equation Modeling vs. Multiple Regression: The First and Second Generation of Multivariate Techniques, IRACST - Engineering Science and Technology: An International Journal, Vol. 2 No. 2, pp. 326-329.
- Baloch, Q.B., Chachar, Q.I. and Tareen, M.N. (2008), Effect of Foliar Application of Macro and Micro Nutrients on Production of Green Chilies (Capsicum annuum L.), Journal of Agricultural Technology, Vol. 4 No. 2, pp. 174-184.
- Copestake, J. (2007), Mainstream Microfinance: Social Performance Management or Mission Drift?, World Development, Vol. 35 No. 10, pp. 1721-1738.
- Corsi, M., Botti, F., Rondinella, T. and Zacchia, G. (2006), Women and Microfinance in Mediterranean Countries, Development, Vol. 49 No. 2, pp. 67-74.
- Datta, D. (2004), Microcredit in Rural Bangladesh: Is It Reaching the Poorest?, Journal of Microfinance, Vol. 6 No. 1, pp. 55-81.
- de Janvry, A. and Sadoulet, E. (2002), World Poverty and the Role of Agricultural Technology: Direct and Indirect Effects, Journal of Development Studies, Vol. 38 No. 4, pp. 1-26.
- Doss, C.R. (2006), Analyzing Technology Adoption Using Micro Studies: Limitations, Challenges, and Opportunities for Improvements, Agricultural Economics, Vol. 34 No. 3, pp. 207-219.
- Elahi, K.Q. and Danopoulos, C.P. (2004), Microcredit and the Third World: Perspectives from Moral and Political Philosophy, International Journal of Social Economics, Vol. 31 No. 7/8, pp. 643-654.
- Fafchamps, M. and Schündeln, M. (2013), Local Financial Development and Firm Performance: Evidence from Morocco, Journal of Development Economics, Vol. 103, pp. 15-28.
- Feder, G., Just, R.E and Zilberman, D. (1985), Adoption of Agricultural Innovations in Developing Countries: A Survey, Economic Development and Cultural Change, Vol. 33 No. 2, pp. 255-298.
- Ferdousi, F. (2015), Impact of Microfinance on Sustainable Entrepreneurship Development, Development Studies Research, Vol. 2 No. 1, pp. 51-63.
- Fofana, B.N., Antonides, G., Niehof, A. and van Ophem, J.A.C. (2015), How Microfinance Empowers Women in Coˆte d’Ivoire, Review of Economic Household, Vol. 13, pp. 1023-1041.
- Gauri, V.J. and Galef, J. (2005), NGOs in Bangladesh: Activities, Resources and Governance, World Development, Vol. 33 No. 12, pp. 2045-2065.
- Ghalib, A.K., Malki, I. and Imai, K.S. (2015), Microfinance and Household Poverty Reduction: Empirical Evidence from Rural Pakistan, Oxford Development Studies, Vol. 43 No. 1, pp. 84-104.
- Ghosh, P. and Ray, D. (2016), Information and Enforcement in Informal Credit Markets, Economics, Vol. 83, pp. 59-90.
- Goldsmith, R.W. (1969), Financial Structure and Development, Yale University Press, New Haven, CT.
- Griliches, Z. (1957), Hybrid Corn: An Exploration in the Economics of Technological Change, Econometrica. Vol.25, pp. 501-522.
- Griliches, Z. (1958), Research Costs and Social Returns: Hybrid Corn and Related Innovations, Journal of Political Economy,Vol. 66, pp. 419-431.
- Gul, B., Marwat, K.B., Hassan, G., Khan, A., Hashim, S. and Khan, I.A. (2009), Impact of Tillage, Plant Population and Mulches on Biological Yield of Maize, Pakistan Journal of Botani, Vol. 41 No. 5, pp. 2243-2249.
- Gurley, J.G. and Shaw, E.S. (1955), Financial Aspects of Economic Development, American Economic Review, Vol. 45 No. 4, pp. 515-538.
- Hicks, J.R. (1969), A Theory of Economic History, Oxford University Press, Oxford.
- Hossain, F. (2003), Small Loans, Big Claims, Development in Practice, Vol. 13 No. 4, pp. 414-416.
- Huang, J., Hu, R., van Meijl, H. and van Tongeren, F. (2004), Biotechnology Boosts to Crop Productivity in China: Trade and Welfare Implications, Journal of Development Economics,Vol. 75 No. 1, pp. 27-54.
- Jahiruddin, A.T.M., Short, P., Dressler, W. and Khan, M.A. (2011), Can Microcredit Worsen Poverty? Cases of Exacerbated Poverty in Bangladesh, Development in Practice, Vol. 21 No. 8, pp. 1109-1121.
- Khandker, R.P. (2003), Credit Programs for the Poor and the Health Status of Children in Rural Bangladesh, International Economic Review, Vol. 44 No. 1, pp. 87-118.
- Kumar, S.S. (2016), Impact of Microcredit Dispensation on Economic Empowerment of Women in Kerala,Journal of Rural Development, Vol. 35 No. (1) pp. 39-49.
- Lantican, C.P., Gladwin, C.H. and Seale, J.L. (1996), Income and Gender Inequalities in Asia: Testing Alternative Theories of Development, Economic Development and Cultural Change, Vol. 44 No. 2, pp. 235-263.
- Maity, B. (2016), Microfinance: Women from the Margin to the Mainstream, Journal of Rural Development, Vol. 35 No. 1, pp. 17-38.
- Mariyono, J. (2015) Green Revolution- and Wetland-Linked Technological Change of Rice Agriculture in Indonesia, Management of Environmental Quality: An International Journal, Vol. 26 No. 5, pp. 683-700.
- Mariyono, J., and Sumarno, S. (2015), Chilli Production and Adoption of Chilli-based Agribusiness in Indonesia, Journal of Agribusiness in Developing and Emerging Economies, Vol. 5 No. 1, pp. 57-75.
- Martin, W.J. and Warr, P.G. (1994), Determinants of Agriculture’s Relative Decline: Thailand, Agricultural Economics, Vol. 11, pp. 219-235.
- Rogers, E.M. (1995), Diffusion of Innovations, 4th Edition, The Free Press, New York.
- Romer, M.P. (1990), Endogenous Technological Change, Journal of Political Economy, Vol. 98 No. 5, pp.71-102.
- Samantaraya, A. and Goswami, A. (2015), Microfinance for Economic Empowerment of Rural India, Journal of Rural Development, Vol. 34 No. 4, pp. 543 - 565.
- Schumpeter, J.A. (1911), The Theory of Economic Development, Oxford University Press, Oxford.
- Sipahutar, M.A., Oktaviani, R. Siregar, H. and Juanda, B. (2016), Effects of Credit on Economic Growth, Unemployment and Poverty, Jurnal Ekonomi Pembangunan, Vol. 17 No. 1, pp. 37-49.
- StataCorp. (2013), Stata: Release 13. Statistical Software. College Station, TX: StataCorp LP.
- Tadesse, M. (2014), Fertilizer Adoption, Credit Access, and Safety Nets in Rural Ethiopia, Agricultural Finance Review, Vol. 74 No. 3, pp. 290-310.
- Tang, J and Folmer, H. (2016), Latent vs. Observed Variables: Analysis of Irrigation Water Efficiency using SEM and SUR, Journal of Agricultural Economics, Vol. 67 No. 1, pp. 173-185.
- Tu, T.T.T., Viet, N.Q. and Loi, H.L. (2015), Determinant of Access to Rural Credit and its Effect on Living Standard: A Study about Poor Households in Northwest Vietnam, International Journal of Financial Research, Vol. 6 No. 2, pp. 218-230.
- Vachya, L. (2015), Microfinance Livelihood Initiatives and Women Empowerment in Selected Villages of Andhra Pradesh, Journal of Rural Development, Vol. 34 No. 1, pp. 31-48.
- Weber, H. (2002) The Implication of Global Development Architecture: The Example of Microcredit, Review of International Studies, Vol. 28 No. 3, pp. 537-555.
- White, B.; Morey, P.; Natawidjaja, R. and Morgan, W. (2007), Vegetable Value Chains in Eastern Indonesia-A Focus on Chilli. SADI-ACIAR Research Report, Indonesia Australia Partnership.
- Wood, G. D. (1997), Breaking Out of the Ghetto: Employment Generation and Credit for the Poor, in Geoffrey D. Wood and Iffath A. Sharif (eds.), Who Needs Credit? Poverty and Finance in Bangladesh, pp. 289-305, University Press Limited, Dhaka.
- Younus, M. (2005), SME and Microcredit, Keynote speech delivered at Bridging the Gap Between Micro and SME Finance Conference, Bangladesh-China Friendship Conference Centre, Dhaka, Bangladesh, 28 November 2005.