Contribution of Agricultural Credit and Subsidy on Agricultural Production of Bangladesh: An Impact Study
Bangladesh is an agrarian country with a large population where the issue of food security in ongoing COVID-19 pandemic deserves more attention for ensuring smooth agricultural production. Along with the growth of agricultural production, Agri-credit and subsidy have a rising trend over time, although subsidy has experienced different patterns from that of the change in credit over the same period. Standard time series analysis has been used to learn about the contribution of credit and subsidy for the rising production in agriculture. Both the long run relationship and the short-term fluctuations are captured using the well-established techniques. Theoretical link supported by data analysis has been discussed along with the realistic picture of the economy which may have a significant impact on policy implications in both cases of Agri-credit and subsidy towards a sustainable agriculture in Bangladesh.
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