**<u>Table 6: FIML estimate of switching regression model: Effects of credit constraint on crop productivity (Gojam Sample)</u>**

|||**Model 1**|||**Model 2**||
|---|---|---|---|---|---|---|
||**Constrained**|**Unconstrained**|**Selection**|**Constrained**|**Unconstrained**|**Selection**|
|Liquidity x 10<sup>3</sup>|0.218***<br>|0.080*<br>||0.227***<br>|0.080*<br>||
||(3.185)|(1.761)||(3.285)|(1.761)||
|Owned land in hectares|-0.113***|-0.015|-0.144***|-0.189***|0.054|-0.139|
|(log in model 2)|(-3.017)|(-0.399)|(-2.632)|(-2.761)|(0.698)|(-1.399)|
|<br>Number of male adults|<br>0.061*|<br>0.035|<br>0.059|<br>0.062*|<br>0.031|<br>0.057|
||(1.682)|(0.819)|(1.086)|(1.690)|(0.738)|(1.040)|
|Number of female adults|-0.006|-0.004|0.076|-0.009|-0.009|0.063|
||(-0.159)|(-0.105)|(1.148)|(-0.210)|(-0.235)|(0.950)|
|Number of oxen owned|0.150***|0.050|0.127**|0.145***|0.040|0.107*|
||(4.357)|(1.595)|(2.276)|(4.260)|(1.309)|(1.938)|
|Value of non-farm income x 10<sup>3</sup>|<br>-0.010|<br>0.010|<br>0.004|<br>-0.012|<br>0.010|<br>0.004|
||(-0.290)|(0.427)|(0.074)|(-0.320)|(0.457)|(0.071)|
|Age of household head|<br>-0.021|<br>-0.034**|<br>-0.006|<br>-0.020|<br>-0.037**|<br>-0.009|
|<br>|(-1.349)|(-1.994)|(-0.215)|(-1.254)|(-2.132)|(-0.345)|
|Age of hh head squared x 10<sup>2</sup>|0.015|0.025|-0.004|0.015|0.027|-0.001|
||(1.088)|(1.528)|(-0.153)|(1.024)|(1.627)|(-0.058)|
|Formal education by head (years)|-0.016|-0.001|-0.039|-0.016|0.001|-0.037|
||(-1.069)|(-0.070)|(-1.517)|(-1.038)|(0.071)|(-1.475)|
|No of hh members < age 15|<br>0.002|<br>0.019|<br>-0.014|<br>0.004|<br>0.016|<br>-0.014|
||(0.061)|(0.794)|(-0.366)|(0.159)|(0.657)|(-0.362)|
|Share of good soil quality land|0.625***|0.741***||0.627***|0.740***||
||(5.817)|(4.825)||(5.813)|(4.844)||
|Share of medium quality land|0.280**|0.766***||0.272**|0.765***||
||(2.016)|(4.639)||(1.967)|(4.658)||
|Proportion of flat land|0.349<br>|0.235<br>||0.350<br>|0.216<br>||
||(1.146)|(1.158)||(1.141)|(1.070)||
|Proportion of gently sloped land|<br>0.270|<br>0.090||<br>0.278|<br>0.078||
||(0.874)|(0.448)||(0.894)|(0.388)||
|Proportion of irrigated land|0.052|-0.097||0.073|-0.082||
||(0.432)|(-0.757)||(0.603)|(-0.598)||
|Number of years possessed|-0.007*<br>|0.004<br>||-0.008*<br>|0.004<br>||
||(-1.663)|(1.037)||(-1.770)|(0.852)||
|Value of household assets x 10<sup>3</sup>|||0.028*|||0.030**|
||||(1.869)|||(2.060)|
|Value of other livestock x 10<sup>3</sup>|||0.050***|||0.049***|
||||(3.411)|||(3.385)|
|Adult children in village|||0.038*|||0.035*|
||||(1.822)|||(1.707)|
|Member has a political position|||0.211*|||0.208*|
||||(1.704)|||(1.691)|
|Member of service cooperative|||-0.042|||-0.050|
||||(-0.318)|||(-0.384)|
|Member of microfinance inst.|||<br>0.676***|||<br>0.668***|
||||(4.895)|||(4.868)|
|Sigma|0.725|0.480||0.732|0.481||
|<br>Rho|-0.463|0.236||-0.480|0.255||
|Log-Likelihood||-1,100.66|||-1,104.89||
|<br>chi2||111.009|||109.679||
|LR test of independent equations||18.589|||20.318||
|<br>χ<sup>2</sup>of equality of liquidity coef.||2.80|||3.19||
|Prob>chi2||0.094|||0.074||
|Number of observations||740|||740||

**Note:** Robust t statistics in parentheses; *, **, and *** denote significance at 10%; 5%; 1%. Constant included but not reported.

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