Impact of e-credit on the efficiency of small rice farmers in punjab, pakistan

The potential benefits to use digital credit facilities in agriculture to enhance the efficiency of small-scale farmers have remained largely untapped. To fill this gap, this study aims to analyze and compare the economic, allocative, and technical efficiency of small-scale farmers either beneficiaries or non-beneficiary of e-credit facilities. Furthermore, the study has also examined the determinants of economic, allocative, and technical efficiency for both beneficiary and non-beneficiary. The study employed Data Envelopment Analysis to compute the score of efficiency and Tobit regression is used to examine the determinants of efficiency. The results of the study revealed a mean value of efficiency scores of 0.57, 0.54, and 0.48 for technical, allocative, and economic efficiency respectively. Results of the study also indicated a positive impact of the adoption of e-credit on technical, allocative, and economic efficiency. Moreover, education of farmers, use of lasers, internet access, ownership of tractors, quality of land, farmer participation in village social network, and household member engagement in farming have a positive impact on technical, allocative, and economic efficiency. It is suggested that there is a need to provide digital credit facilities and internet facilities to small farmers so they can increase their farm efficiency. The study also suggested that there is a need to invest in human capital especially education and provision of institutional support to small farmers. (author)