2021 Fiscal Year Annual Research Report
Are Islamic agricultural loans more effective than conventional loans? Evidence from Pakistan
| Project/Area Number |
20F20309
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| Research Institution | Hitotsubashi University |
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| Co-Investigator(Kenkyū-buntansha) |
Umer Hamza 一橋大学, 社会科学高等研究院, 特任講師 (00972746)
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| Project Period (FY) |
2020-11-13 – 2023-03-31
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| Keywords | Religion / Islam / Farmers / Preferences / Shock |
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| Outline of Annual Research Achievements |
Under the JSPS Kakenhi (Grant-in-Aid for JSPS Fellows), we examined the influence of Islam on farmer’s output and social preferences through field work in Pakistan. We surveyed 100 farmers who borrowed conventional agricultural loans. Using this data, we clarified the influence of religion on pro-social behavior of farmers on the one hand and the effect of income shocks on social preferences on the other, each of which has been already compiled in the following two papers.
- Recipient dependent generosity and its relation with religiosity (under review at Plos One)
- Effects of the Covid-19 and natural agricultural shocks on preferences of farmers (almost ready for submission)
Along with the main research project, Hamza Umer, the JSPS Fellow for this Kakenhi, has published five papers in peer-reviewed journals during his JSPS fellowship. We (Hamza Umer and Takashi Kurosaki) also presented one paper (co-authored with Kazuhiro Obayashi) at the 7th Hitotsubashi Summer Institute (HSI2021); Economic Development Section on 3rd September, 2021. Available at: https://glecs.hias.hit-u.ac.jp/wp-content/uploads/2021/08/Program_Economic_Development_rev.pdf
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Under the JSPS Kakenhi (Grant-in-Aid for JSPS Fellows), we worked on the research intended to examine the influence of Islam on farmer’s agricultural production in Pakistan, collecting data from two types of borrowers: conventional loans and Islamic loans. Unfortunately, we were unable to survey the latter due to noncooperation of the Islamic Bank, which was totally unexpected, mostly caused by COVID-19, beyond our control. However, we successfully surveyed 100 farmers with conventional agricultural loans. Using this dataset with detailed information on shocks and preferences, we have analyzed the mechanisms through which Islamic agricultural loans can impact farmers. This fulfills our main research objective and has been compiled in working paper 1). Furthermore, based on this dataset, we have modified our research strategy and examined the influence of religion and exogenous shocks on preferences of farmers. The result of this analysis has been complied in working paper 2). Both are co-authored by Hamza Umer and Takashi Kurosaki.
1)“Recipient dependent generosity and its relation with religiosity” (under review at Plos One)
2)“Effects of the Covid-19 and natural agricultural shocks on preferences of farmers”
The working paper 2 is now almost ready for submission, targeted at the top journal in development economics, such as American Journal of Agriculture Economics.
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| Strategy for Future Research Activity |
We have already analyzed the collected data and composed two working papers. We will publish these papers in peer-reviewed journals.
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