institutional credit and agricultural productivity: An evidence from Pakistan

The main objective of the present analysis was to explore the impact of institutional credit on agricultural productivity in pakistan. the relationship between disbursement of institutional credit and agricultural productivity was estimated by employing johansen co-integration technique for the period of 1975-2012. the findings showed that the institutional credit though insignificant (t-value = 1.16) but had positive impact on the agriculture productivity (i.e. about 5%). the modern and expensive agriculture inputs e.g. tube-wells had 0.20%,fertilizers had 0.48%,pesticides had 0.44% and seeds had 1.52% positive effect on agricultural productivity. based upon this analysis,it might be suggested that disbursement of institutional credit should be promoted.