Supply and demand of commercial credit: In case of buying and selling agricultural materials deferred in the Mekong Delta

Abstract

The objective of the article is to estimate the influence of factors on supply and demand trade credit in case of buying and selling agricultural materials of agents and rice farmers in the Mekong Delta, Vienam. The estimated results from the primary data of 574 transactions show that there are three factors that have positive coefficients with statistical significance in two states of supply and demand (familiar time, agent number and agricultural land area farmer's karma). The geographical distance factor has statistical significance in two states of supply and demand, but in the supply state, this factor has a positive coefficient and in the demand state, this factor has a negative coefficient. Three factors with statistically negative coefficients in both states are the experience of farmers, farming income and translation value. In addition, for experienced agents that have a positive influence on commercial credit level, for farmers, the number of agents has a positive influence on the ability to buy the farmer. The research results can enable stakeholders (farmers, input suppliers, and government agencies) to make decisions that improve operational performance and foster sustainable agriculture.