Effect of credit on commercial brinjal production in Bangladesh

Brinjal-producing farmers in Bangladesh frequently face financial constraints during cultivation, which can limit productivity and profitability. Access to credit can support farm production. However, evidence on the relationship between credit access and brinjal farming performance remains limited. This study examined the association between credit access and brinjal yield and profit in the Pabna district of Bangladesh. Propensity Score Matching was used to estimate differences in yield and profit between credit-recipient and credit non-recipient farmers. To assess robustness, the analysis also incorporated inverse probability-weighted regression adjustment and a Rosenbaum bounds sensitivity analysis. The results indicated statistically significant positive associations between credit access and both yield and profit. Credit-recipient farmers achieved estimated yield and profit advantages of 6,197.75 kg ha −1 and BDT 168,333.8 (USD 1,375) ha −1 , respectively, compared with credit non-recipient farmers. Balance diagnostics confirmed substantial improvements in covariate balance after matching, and the Rosenbaum bounds sensitivity analysis suggested that the estimated associations were reasonably robust to moderate levels of hidden bias. These findings suggest that improving access to agricultural credit may be a relevant consideration for development strategies in commercial brinjal-producing areas. The analysis, however, is based on observational data from a single district and the underlying mechanisms cannot be identified directly. The results contribute to the evidence base on agricultural finance in Bangladesh and may inform future research and policy discussions on the role of credit in agricultural development.