**<u>Table 5: FIML estimate of switching regression: Effects of credit constraint on crop productivity (pooled)</u>**

|||**Model 1**|||**Model 2**||
|---|---|---|---|---|---|---|
||**Constrained**|**Unconstrained**|**Selection**|**Constrained**|**Unconstrained**|**Selection**|
|Liquidity x 10<sup>3</sup>|0.060|-0.010||0.069|-0.011||
||(1.247)|(-0.191)||(1.423)|(-0.241)||
|Owned land in hectares|-0.122***|-0.082**|-0.050|-0.192***|-0.173**|0.011|
|(log in model 2)|(-4.451)|(-2.194)|(-1.216)|(-4.627)|(-2.450)|(0.187)|
|<br>Number of male adults|0.021|0.059|0.060*|0.023|0.065*|0.057|
||(0.899)|(1.557)|(1.660)|(1.011)|(1.807)|(1.594)|
|Number of female adults|-0.026|0.042|0.038|-0.025|0.042|0.032|
||(-0.950)|(1.228)|(0.899)|(-0.922)|(1.301)|(0.765)|
|Number of oxen owned|0.114***|0.032|0.096**|0.114***|0.038|0.083**|
||(4.568)|(0.517)|(2.464)|(4.580)|(0.852)|(2.158)|
|Value of non-farm income x 10<sup>3</sup>|-0.010|-0.019|0.035*|-0.011|-0.020|0.038*|
||(-0.523)|(-0.790)|(1.665)|(-0.573)|(-0.871)|(1.801)|
|Age of household head|0.002|-0.027**|-0.006|0.002|-0.025**|-0.009|
||(0.209)|(-2.163)|(-0.364)|(0.197)|(-1.964)|(-0.525)|
|Age of hh head squared x 10<sup>2</sup>|<br>-0.005|<br>0.022*|<br>-0.003|<br>-0.005|<br>0.020|<br>-0.001|
||(-0.464)|(1.763)|(-0.197)|(-0.439)|(1.639)|(-0.079)|
|Formal education by head (years)|-0.009|0.016|0.006|-0.010|0.018|0.005|
||(-0.982)|(1.343)|(0.405)|(-0.988)|(1.624)|(0.342)|
|No of hh members < age 15|-0.007|0.021|-0.005|-0.003|0.029|-0.008|
||(-0.426)|(0.979)|(-0.191)|(-0.184)|(1.459)|(-0.319)|
|Share of good soil quality land|0.449***|0.493***||0.458***|0.520***||
||(4.836)|(3.342)||(4.951)|(3.588)||
|Proportion of medium soil<br>quality land|0.240**|0.543***||0.232**|0.544***||
||(2.234)|(3.624)||(2.165)|(3.708)||
|Proportion of flat land|0.348*|0.362||0.342*|0.360||
||(1.779)|(1.583)||(1.752)|(1.561)||
|Proportion of gently sloped land|<br>0.219|<br>0.252||<br>0.223|<br>0.270||
||(1.105)|(1.110)||(1.125)|(1.186)||
|Proportion of irrigated land|0.141|-0.085||0.152|-0.090||
||(1.406)|(-0.439)||(1.527)|(-0.486)||
|Number of years possessed|-0.006**|-0.001||-0.006**|-0.001||
||(-2.029)|(-0.324)||(-2.124)|(-0.350)||
|Wollo zone dummy|0.124**|-0.258***|0.155*|0.108*|-0.286***|0.193**|
||(2.246)|(-2.815)|(1.955)|(1.947)|(-3.355)|(2.404)|
|Value of household assets x 10<sup>3</sup>|||0.005*|||0.004*|
||||(1.793)|||(1.679)|
|Value of other livestock x 10<sup>3</sup>|||0.042***|||0.041***|
||||(3.384)|||(3.236)|
|Adult children in village|||0.022|||0.020|
||||(1.424)|||(1.343)|
|Member has a political position|||<br>0.180**|||<br>0.180**|
||||(2.214)|||(2.216)|
|Member of service cooperative|||0.140|||0.136|
||||(1.569)|||(1.572)|
|Member of microfinance inst.|||<br>0.604***|||<br>0.612***|
||||(5.876)|||(6.339)|
|Sigma|0.745|0.656||0.745|0.646||
|<br>Rho|-0.423|-0.124||-0.418|-0.084||
|Log-Likelihood||-2,599.92|||-2,588.23||
|<br>chi2||136.681|||131.947||
|LR test of independent equations<br>||15.531|||14.992||
|χ<sup>2</sup>of equality of liquidity coef.||0.75|||0.05||
|<br>Prob>chi2||0.385|||0.816||
|Number of observations||1,586|||1,582||

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

20