CAPITAL INVESTMENT IN AGRICULTURE: THE IMPACT OF CREDIT ON FARM LEVEL RESOURCE OF SMALL SCALE FOOD PRODUCERS IN BAUCHI STATE
CAPITAL INVESTMENT IN AGRICULTURE: THE IMPACT OF CREDIT ON FARM LEVEL RESOURCE OF SMALL SCALE FOOD PRODUCERS IN BAUCHI STATE
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Date
2005-08
Authors
Abarshi, Yusuf M.
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Abstract
This thesis assessed the role of the small-scale food producers in increasing
food availability in the ADP zones of Bauchi state. The main objectives of this
thesis are to examine the credit sources, magnitude and utilization in the study
area, to asses the constraints encountered in the application of credit input in food
production and to examine the possibility of success or failure of a sustained
agricultural credit on farm output and resource level of farmers. Given this
objective, it was hypothesized that credits add to resource of farmers.
Consequently the result indicates that, formal and informal credit sources depict a
remarkable influence on farmer’s resource level. Other sources of credit show
positive contribution to output; with this observation, it is clear that resource level
of such recipients had a positive effect on output.
An economic model used to asses the impact of credit on farm level resource efficiency of
credit recipients is the Cobb-Douglas functional form in the form of linear, semi log and double
log functional form. The production function adopted reveal the double log as the “best” with
most of its variables positive and consistent with expectations. While the other two models
indicated a mix outcome and inconsistencies. Consequent to this, the double log result was
subjected to a further screening (step wise process) to determine the variables having the greater
influence in the study locations. An important conclusion drawn is that credit received through
institutional sources has the tendency to contribute more to output than other credit sources. The
constraints in utilization of credit observed especially with the institutional credit sources were in
form of improper timing, insufficient credit magnitude and the proper use necessary for such
impact to be realized.
Description
A Thesis submitted to the department of economics
ABU Zaria in partial fulfillment for the award of M.Sc. Economics.
Keywords
CAPITAL,, INVESTMENT,, AGRICULTURE,, IMPACT,, CREDIT,, FARM LEVEL,, RESOURCE,, SMALL SCALE,, FOOD PRODUCERS,, BAUCHI STATE