Does Formal Credit Enhance Sugarcane Productivity? A Farm-Level Study of Sindh, Pakistan

In this study, we used the probit model to find out determinants of access formal credit and then applied Cobb–Douglas production function examine impact on sugarcane productivity. To elicit choice consequence productivity, divided farmers into two groups: borrowers nonborrowers. A total sample comprised 120 growers from Badin District—rich in production—Sindh, Pakistan. For analysis purposes, a binary-choice that reveals significantly positive relationship between farmer’s education level, landholding size, farming experience, household size. The main driver is because it as collateral against loan. age farmers, which was found negative significant, shows aged are risk-averse reluctant credit. results affirm use process can enhance crop overall income farmers. Therefore, secure timely availability crop-specific help inputs recommended manner.