Indian Journal of Economics and Development
  • Year: 2022
  • Volume: 18
  • Issue: 3

Determinants of capital formation on Punjab farms

  • Author:
  • Mandeep Kaur*, Kuldeep Walia
  • Total Page Count: 11
  • Page Number: 606 to 616

Department of Economics, Sri Guru Granth Sahib World University, Fatehgarh Sahib-140 406 (Punjab)

*Corresponding author's email: mandeepsra93@gmail.com

Online published on 3 February, 2023.

Abstract

The study was based on 251 randomly selected farm holdings from the three agro-climatic zones of Punjab State. The primary data of the farm households for the agriculture year 2019-20 were collected. The power function was used to examine the relationship of capital formation with impact variables. The key findings showed that the acquisition of capital assets and crop returns was higher in Zone II, followed by Zone III and I. The regression analysis revealed that the capital formation varied significantly with farm size. Access to owned or borrowed funds significantly influenced capital formation; thus, access to borrowed funds needed to be facilitated.

Keywords

Cropping intensity, Determinants, Fixed farm assets, Owned and borrowed funds