Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria
Okoroji Nma Okechukwu,
Nalwoga Mukokoma Maurice,
Bwanika Godfrey
Issue:
Volume 8, Issue 3, June 2022
Pages:
84-94
Received:
24 January 2022
Accepted:
15 February 2022
Published:
9 June 2022
DOI:
10.11648/j.ijfbr.20220803.11
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Abstract: The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.
Abstract: The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which ca...
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Determinants of Private Investment in Ethiopia: An ARDL Approach
Habtamu Alebachew Legass,
Solomon Adamu Derese,
Anwar Adem Shikur
Issue:
Volume 8, Issue 3, June 2022
Pages:
95-104
Received:
20 April 2022
Accepted:
7 June 2022
Published:
21 June 2022
DOI:
10.11648/j.ijfbr.20220803.12
Downloads:
Views:
Abstract: One of the main engines of economic is private investment. As a result, the objective of this study was to investigate determinants of private investment in Ethiopia. The researcher employed a quantitative research approach with an explanatory research design to achieve the objective. study empirically tests whether Real GDP, inflation rate, real interest rate, foreign direct investment, tax rate, exchange rate, population growth rate, unemployment rate, international trade openness, education affect the growth of private investment in Ethiopia or not. The study focused based on 30 years of secondary data (i.e. from 1991 to 2020) on key variables. Multiple regressions using the ARDL model with appropriate software E-views 9 was applied. The ECM which indicates the speed of adjustment from short run towards long run. The main finding of the study indicated ln real GDP, population growth rate, rate interest, trade openness, and unemployment rate was statistically significant at 5% level of significance in the long run and short-run and also exchange rate was a positive and statistically significant effect on private investment in only short-run. Finally unemployment has adverse effect on private investment, the policy choice on the matter need a vigilant decision. Combined policy tools shall be used to achieve the great short run and long run targets.
Abstract: One of the main engines of economic is private investment. As a result, the objective of this study was to investigate determinants of private investment in Ethiopia. The researcher employed a quantitative research approach with an explanatory research design to achieve the objective. study empirically tests whether Real GDP, inflation rate, real i...
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