AGRICULTURAL FINANCING, POVERTY ALLEVIATION AND ECONOMIC GROWTH: EVIDENCE FROM RURAL FARMING COMMUNITIES

Abstract

This study investigates how agricultural financing influences poverty reduction and economic growth in emerging economies from 2015 to 2024, focusing on agriculturally active regions. Using quantitative methods and data from farmer surveys and financing stakeholders, the research, guided by Agricultural Credit Theory, Harrod Domar Growth Theory, and Financial Intermediation Theory, examines links between credit access, productivity, and economic outcomes. Findings show that agricultural financing increases farm output, food security, rural employment, and agricultural GDP, although high borrowing costs and institutional inefficiencies limit the full impact. The study offers new empirical insights into how financing improves household welfare and supports broader macroeconomic growth.