Determinants of Smallholder Farmers’ Access to Formal Credit: The Case of Chivi District
Luckmore Chivandire 2019. Determinants of Smallholder Farmers’ Access to Formal Credit: The Case of Chivi District. SSRN. https://doi.org/10.2139/ssrn.3395707
Luckmore Chivandire 2019. Determinants of Smallholder Farmers’ Access to Formal Credit: The Case of Chivi District. SSRN. https://doi.org/10.2139/ssrn.3395707
| Title | Determinants of Smallholder Farmers’ Access to Formal Credit: The Case of Chivi District |
|---|---|
| Type | Journal article |
| Authors | Luckmore Chivandire |
| Abstract | One of the most crucial and leading factors constraining smallholder farmers’ development in developing countries like Zimbabwe is limited access to financial capital and credit especially from the formal lending institutions. This is because on one hand, these farmers fail to fulfil the formal institutions’ lending requirements and on the other, the banking sector considers these farmers as highly risky. This study is conducted with the aim of identifying the major factors affecting access to formal credit by smallholder farmers with particular reference to Chivi district. The data for the study was collected from farmers in the district. It was collected from randomly selected six wards in the district through questionnaires. The estimation result employing the logit model reveals that staying closer to formal financial institutions, education, age, the square of age and sex are important factors which determine access to formal credit in the district. However, income was a statistically insignificant variable. The result leads to the suggestion that, policies designed to empower women so as to enable them to access formal credit should be implemented. There is also need to improve educational standards and increase the number of financial institutions in Chivi. |
| Keywords | Formal credit |
| Logit | |
| Financial institutions | |
| rural | |
| Journal | SSRN |
| ISSN | 1556-5068 |
| Year | 2019 |
| Publisher | Elsevier |
| Digital Object Identifier (DOI) | https://doi.org/10.2139/ssrn.3395707 |
| Publication dates | |
| Published | 12 Jun 2019 |