Role of Early Returns Credit on Development of Livestock Farms

Authors

• M. Shabanzadeh
• N. Shahnooshi
• M. Daneshvar
• M. Ghorbani
• M. Mojaverian

Abstract

Supporting establishment and development of small and medium enterprises is one of priorities in the economic development plans in most developing countries. However, opponents and proponents have largely discussed the effectiveness of small and medium economic enterprises in Iran. This study aims to evaluate the performance of livestock enterprises which got loans under early return credit program and its impact on macroeconomic variables. Data were collected from a sample of 50 beneficiary and 24 non-beneficiary farms in Babol region in 1386. The matching method was used to safeguard comparison. The results of the study revealed that some of farms stopped their activity after two or three years. In the remaining farms, credit had a positive impact on employment and led to new investment. Finally, some recommendations are made to improve the situation.
 

Keywords

• Employment
• Credit
• Livestock enterprises
• Matching method

20.1001.1.20086407.1390.3.11.8.7

---

References

1. Aivazian, V.A. and Santor, E. 2008. Financial Constraints andInvestment: Assessing the Impact of a World Bank creditprogram on Ssmall and Medium Enterprises in Sri Lanka.Canadian Journal of Economics, 41: 475-500.

2. Bakhteari, S. and Pasban, F. 2004. The role of bank credit inDevelopment of Career opportunities: A Case Study of

Agricultural Bank of Iran. Agricultural Economics andDevelopment, 12(46): 73-105. (In Persian)

3. Brown, J. D., J.S. Earle and Lup, D. 2005. What Makes SmallFirms Grow? Finance, Human Capital, Technical Assistance, andthe Business Environment in Romania. Economic Developmentand Cultural Change, 54: 33-70.

4. Burgess, R. and Pande, R. 2002. Do Rural Banks Matter?Evidence from the Indian Social Banking Experiment. AmericanEconomic Review, 95(3): 780–795.

5. Central Bank of Iran. 2007. Report regulatory central bank fromperformance of Early Returns Firms. (In Persian)

6. Dehejia, R. H. and Wahba, S. 2002. Propensity Score-MatchingMethods for Nonexperimental Causal Studies. The Review ofEconomics and Statistics, 84(1): 151–161.

7. Dehghan Dehnavi, M.A. 2006. Position the small and mediumenterprises in development employment and exports. MagazineEconomics and Development. No. 12-16. (In Persian)

8. Divandari, A., M.R Zali and Colobandi, M.M. 2009. Evaluationof effectiveness the early return projects. Magazine work andsociety, 109: 4-15. (In Persian)

9. Edraki, M. 2007. Development Bank of Small and MediumEnterprise Economic of Iran's. Journal of Roshd -e- Fanavari,12(3): 26-33. (In Persian)

10. Feizhpour, M.A. and Poushdozbashi, H. 2008. Small and mediumenterprises with the rapid growth and their share in job creation:study production industries of Iran in the second development

plan. Iranian Journal of Economic Research, 12(37): 119-145. (InPersian)

11. Khavehfiroz, A. and Iranneghad, M.R. 2009. The Examine ofEffectiveness of the plan pay credits to small businesses and Entrepreneur. Journal of evaluation Knowledge, 1:328-342. (InPersian)

12. Office of Economic Studies of Islamic council parliament.2009.The Report examines of Statistical project of evaluationperformance the regulation establishment of Early Returnseconomic Firms. (In Persian)

13. Petrick, M. 2004. Farm Investment, Credit Rationing, andGovernmentally Promoted Credit Access in Poland: a CrossSectionalAnalysis. Food Policy, 29: 275–294.

14. Rosenbaum, P.R. and Rubin, D.B. 1983. The Central Role of thePropensity Score in Observational Studies for Causal Effects.Biometrika, 70(1): 41–55.

15. Rubin, D.B. 1974. Estimating Causal Effects of Treatments inRandomized and Nonrandomized Studies. Journal of EducationalPsychology, 66: 688–701.

16. Rubin, D.B. 1977. Assignment to a Treatment Group on the Basisof a Covariate. Journal of Educational Statistics, 2: 1–26.

17. Rubin, D.B. 1978. Bayesian Inference for Causal Effects: TheRole of Randomization. The Annals of Statistics, 6(1):34–58.

18. Rubin, D.B. 1990. Comment: Neyman (1923) and CausalInference in Experiments and observational Studies. StatisticalScience, 5(4): 472–480.

19. Yaghoubi, J. 2005. Examine Effects of micro-credit on women'semployment rural in Zanjan province. Journal of Women inDevelopment and Policy, 1: 125-146. (In Persian).