Impacts of rural credit on agribusiness variable

Abstract

This paper analyzes the impacts of rural credit on Brazilian agriculture, emphasizing a set of variables essential for understanding the performance and transformations that occurred. This issue has been the subject of frequent concern by agricultural economists, who have generally focused on the effects on agricultural production. Rural credit in Brazil is one of the policies that have undergone major changes in recent years. The main policy adjustments made during the 1980s and 1990s were undoubtedly on credit. This process occurred within changes that were being carried out where the Government was changing its way of acting. The withdrawal of subsidies to rural credit in the 1980s may have been one of the main changes in financing policy in Brazil. It can be concluded from the tests carried out that, in descending order, the impacts of Rural Credit on the variables tested, expressed through the elasticities, are: Credit on the VBP, impact of 0.40% for an increase of 1.0 % Of Rural Credit; Credit on Agribusiness GDP, impact of 0.19% for a 1.0% increase in Rural Credit; Credit on the GDP of Agriculture, with impact of 0.18% and Credit on TFP, with impact of 0.12%.