ارزيابي هزينه مبادله تامين اعتبارات كشاورزي برنج كاران استان مازندران

Transaction cost of providing agricultural credit in Iran (Case study: Rice producers in Mazandaran province)

This paper estimates transaction cost of obtaining credits by agricultural producers in Mazandaran province. Factors affecting the magnitude of transaction cost was estimated using econometric models. The data used in the research were collected from a sample of 258 rice farmers in Mazandaran province. Results show that transaction cost for borrowers is equal to 3.72 percent. In other words, transaction cost increases effective interest rate from 13.67 to 17.39 percent. This results highlights the importance of transaction cost in financial policies. Results of econometric estimates showed that the bigger the loan amount, the lower the transaction cost per unit of loan. Moreover, farmer access to information decreases transaction cost and distance from financial institutions increases it. We can infer high transaction cost in financial markets may discourage from participation in such markets. In whole, the finding showed that transaction cost can be one of the most important elements in financial policies in agricultural sector.