Discovering the relationship between Agri funding and Agri contribution to GDP
Evidence from Bangladesh
DOI:
https://doi.org/10.20525/ijfbs.v13i1.3351Keywords:
Agricultural Credit Agricultural Productivity, Agriculture financing, Agriculture output, Gross Domestic Product, Economic Growth.Abstract
One of the main goals for Bangladesh is to achieve economic growth by increasing agricultural productivity. I will be conducting research to examine how agricultural financing and contributions impact Bangladesh. The researchers collected yearly time series data from the Bangladesh Bank (BB), Ministry of Finance (MoF), and Bangladesh Bureau of Statistics (BBS) for the period of 2012 to 2022. This article employed the GMM estimation technique using SPSS to examine the short- and long-term relationships between agricultural financing and agricultural contribution, along with other control variables. The findings of the study showed that there are connections between agricultural funding and agricultural contribution in both the short-term and long-term. Additionally, agricultural productivity is affected by various dynamic factors including GDP, inflation, interest rates, and government agricultural spending. The dependent variable in this study was GDP, while the independent variable was agricultural production. Most agricultural processing sectors, along with some agricultural producing sectors, have a greater potential for making money. This research indicates that it would be beneficial to increase agricultural financing in order to support the economic development of Bangladesh.
Downloads
References
Abdallah, A.-H., Ayamga, M., & Awuni, J. A. (2019). Impact of agricultural credit on farm income under the Savanna and Transitional zones of Ghana. Agricultural Finance Review, 79(1), 60-84.
ADO, Y., SANNI, S. A., OMOKORE, D. F., USMAN, O. Y., ANDREA, F., & RAUL, P. (2022). DOES AGRICULTURE NEED INVESTMENT? NIGERIA AS A CASE STUDY. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 24(2).
Awasthi, M. K., Sindhu, R., Sirohi, R., Kumar, V., Ahluwalia, V., Binod, P., Juneja, A., Kumar, D., Yan, B., & Sarsaiya, S. (2022). Agricultural waste biorefinery development towards circular bioeconomy. Renewable and Sustainable Energy Reviews, 158, 112122.
Bah?i, N., & Çetin, E. (2020). Determining of agricultural credit impact on agricultural production value in Turkey. Ciência Rural, 50, e20200003.
Bawa, H. S., Sharaai, A. H., Ab Rahim, R., Sahrir, S., & Yuguda, A. U. (2023). Life Cycle Assessment of Poultry Production in Nigeria: A Review of Sustainability and Evaluation Studies. Chemical Engineering Transactions, 106, 565-570.
Clay, N., & Zimmerer, K. S. (2020). Who is resilient in Africa's green revolution? Sustainable intensification and climate smart agriculture in Rwanda. Land use policy, 97, 104558.
Flifli, V., Okuneye, P. A., & Akerele, D. (2020). Lenders and borrowers' collaboration-based risk mitigation credit market: factors influencing access to formal credit in the agricultural sector in the Benin Republic. Agricultural Finance Review, 80(2), 173-199.
Harris, D. R. (2021). Domesticatory relationships of people, plants and animals. In Redefining nature (pp. 437-463). Routledge.
Hossain, A., Krupnik, T. J., Timsina, J., Mahboob, M. G., Chaki, A. K., Farooq, M., Bhatt, R., Fahad, S., & Hasanuzzaman, M. (2020). Agricultural land degradation: processes and problems undermining future food security. In Environment, climate, plant and vegetation growth (pp. 17-61). Springer.
Irungu, J. W. (2013). Relationship between Agricultural Credit Financing and Financial Performance: A Case of Small Scale Farmers in Kiria Division in Muranga County University of Nairobi.
Islam, M. M. (2020). Agricultural credit and agricultural productivity in Bangladesh: An econometric approach. International Journal of Food and Agricultural Economics (IJFAEC), 8(3).
Ita, A. J., Owui, H. O., Dunsin, O. M., & Ita, R. I. (2020). Commercial banks lending and the growth of agricultural sector in Nigeria. IIARD International Journal of Banking and Finance Research, 6(3).
Kharel, M., Dahal, B. M., & Raut, N. (2022). Good agriculture practices for safe food and sustainable agriculture in Nepal: A review. Journal of Agriculture and Food Research, 10, 100447.
Médici, F. (2020). Financial instability in peripheral economies: an approach from the balance-of-payments constraint. Journal of Post Keynesian Economics, 43(4), 515-539.
Miah, M. D., Hasan, R., & Uddin, H. (2020). Agricultural development and the rural economy: The case of Bangladesh. Bangladesh's Economic and Social Progress: From a Basket Case to a Development Model, 237-266.
Nandy, A., & Singh, P. K. (2020). Farm efficiency estimation using a hybrid approach of machine-learning and data envelopment analysis: Evidence from rural eastern India. Journal of Cleaner Production, 267, 122106.
Osifo, O., Igbinovia, L. E., & Eriki, P. (2017). Agricultural Output and Per Capita Income: Evidence from Nigeria. SSRN.
Rahman, M. T. (2017). Role of agriculture in Bangladesh economy: uncovering the problems and challenges. International Journal of Business and Management Invention, 6(7).
Villalba, R., Venus, T. E., & Sauer, J. (2023). The ecosystem approach to agricultural value chain finance: A framework for rural credit. World Development, 164, 106177.
Yana, S., Nizar, M., & Mulyati, D. (2022). Biomass waste as a renewable energy in developing bio-based economies in Indonesia: A review. Renewable and Sustainable Energy Reviews, 160, 112268.
Zang, Y., Hu, S., Zhou, B.-b., Lv, L., & Sui, X. (2023). Entrepreneurship and the formation mechanism of Taobao Villages: Implications for sustainable development in rural areas. Journal of Rural Studies, 100, 103030.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Murshida Hossain, Afsana Jahan, A. K. M. Ashiqur Rahman

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors contributing to IJFBS agree to publish their articles under the Creative Commons Attribution- 4.0 license, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. Authors retain copyright of their work, with first publication rights granted to IJFBS. However, authors are required to transfer copyrights associated with commercial use to the Publisher. The authors agree to the terms of this Copyright Notice, which will apply to this submission if and when it is published by this journal
Submission of an article implies that the work described has not been published previously( except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, it will not be published elsewhere in the same form, in English or in any other languages, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.