Table 5

Effects of financial inclusion on agricultural productivity – fixed effects estimation

Dependent variable: Agricultural productivity (real net crop income per hectare)123456
Financial inclusion (ACCESS)0.148*** (0.0402)0.126*** (0.0415)    
Financial inclusion (SAVE)  0.109** (0.0405)0.0868* (0.0507)  
Financial inclusion (BORROW)    0.230*** (0.0605)0.194*** (0.0626)
Household net worth −0.0276* (0.0142) −0.0296** (0.0143) −0.0233 (0.0147)
Household consumption 0.164*** (0.0480) 0.173*** (0.0513) 0.179*** (0.0488)
Household size 0.00289 (0.00663) 0.00302 (0.00667) 0.00243 (0.00667)
Urban dweller −0.0486 (0.0756) −0.0487 (0.0756) −0.0400 (0.0743)
Islam adherent −0.0723 (0.0495) −0.0752 (0.0494) −0.0752 (0.0511)
Traditional adherent −0.135 (0.139) −0.134 (0.144) −0.136 (0.139)
Remittance received 0.0731 (0.0771) 0.0741 (0.0776) 0.0809 (0.0798)
Household head age 0.00148 (0.00116) 0.00155 (0.00121) 0.00167 (0.00119)
Household head is female −0.126** (0.0473) −0.123** (0.0478) −0.120** (0.0477)
Household head education: years −0.0152*** (0.00522) −0.0144** (0.00537) −0.0134** (0.00496)
Herbicide use 0.0131 (0.0471) 0.0187 (0.0481) 0.00957 (0.0456)
Pesticide use 0.0697 (0.0431) 0.0709 (0.0433) 0.0663 (0.0423)
Fertiliser use 0.0335 (0.0470) 0.0359 (0.0466) 0.0358 (0.0460)
Constant12.16*** (0.0127)10.48*** (0.535)12.18*** (0.00992)10.40*** (0.587)12.19*** (0.00548)10.24*** (0.541)
Observations7,1836,9067,1836,9067,1836,906
R-squared0.0040.0240.0020.0220.0040.024
Number of state373737373737

Note(s): Robust standard errors in parentheses, *p < 0.1, **p < 0.05, ***p < 0.01

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