NL Journal of Agriculture and Biotechnology
(ISSN: 3048-9679)

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Does Institutional Agricultural Credit Drive Agricultural GSDP? Evidence from Assam

Author(s) : Navajyoti Gogoi, Dr. Suranjan Sarma*.
DOI : 10.71168/NAB.03.02.147

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Abstract

Agriculture sector plays a crucial role in the state of Assam by providing livelihoods to the majority of the rural population and contributing significantly to the Gross State Domestic Product (GSDP). Despite its importance, the sector continues to face persistent productivity challenges. Using 28 years of time-series data, this study examines the impact of institutional agricultural credit on agricultural GSDP, along with other explanatory variables, namely total cultivated area and fertilizer consumption. The Autoregressive Distributed Lag (ARDL) model was employed to analyse both the short-run and long-run impact of these explanatory variables on agricultural GSDP. The findings reveal that institutional credit has no statistically significant impact on agricultural GSDP in either the short run or the long run. However, cultivated area has a positive short-run effect on agricultural GSDP with a one-year lag. In contrast, consumption of fertilizer exerts a negative short-run effect on agricultural GSDP with one-year lag. Keywords: Agricultural GSDP, Institutional Agricultural Credit, Total Cultivated Area.

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