ISSN 2360-798X
Abstract
This study critically evaluates the agricultural response to investment and credit in Benin. In this article we develop an autoregressive vectors model to estimate the short-term public investments and Agricultural Credit dynamics on the cotton production. Results show that investment and agricultural Credit policies do not induce positive reactions of cotton supplies. In addition, the response time of the Beninese cotton producers to financial incentives is quite long and they are little sensitive to the new agricultural cotton policy.
Keywords: vector autoregressive model –investments- Agricultural Credit - cotton
JEL Classification: G13, L11, O24, O33