Informal Credit’s Effects on Productivity of Cereal Crops

Abstract

The present study was conducted in village Regi, district Peshawar, Khyper Pakhtunkhwa, Pakistan. The aim of the study was to assess the impacts of credit on farm output. For this purpose, hundred respondents were selected and interviewed through simple random sampling technique. The study found that tenants are the efficient user of credit. With the use of credit, the output of both wheat and maize has significantly increased which was confirmed by the values of Welch’s test value and its respective p-values. Based on the findings it is suggested that convenient and timely availability of credit has positive effects on the socio-economic condition of the farmers.

Key Words: informal credit, welch test, wheat and maize.