THE ROLE OF AGRICULTURAL FINANCING IN MYANMAR

Agricultural financing plays an important role in increasing agricultural productivity in developing countries such as Myanmar. Access to financing is a great challenge for most farmers. The lack of access to financing is an important barrier for farmers to improve the efficiency of their production. Therefore, it is necessary to promote the financing of agriculture to stimulate investment in the agricultural sector and increase food production. The main objective of the study is to analyze the relationship of agricultural financing on agriculture productivity in Myanmar. This study used qualitative method through both primary and secondary sources to analyze macroeconomic variable such as agricultural loans and agricultural productivity. Descriptive statistics was used to analyze the qualitative data while Pearson’ correlation and regression were done to examine the relationship between the agricultural loan and agricultural production. This study found that when the amount of agricultural loan increases, the amount of agricultural production also increases. This study concluded that there is a positive relationship between agricultural loan and agricultural production but not very strong relationship. The study suggested on government should find potential options such as strengthen agricultural credit scheme and increase MFIs coverage to increase farmer accessible to agricultural loan for more agricultural productivity