Determinants of Savings and Credit Cooperatives on Financial Intermediation

Temesgen Yaekob Ergano, Shemsu Fitamo and Sure Pulla Rao
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Temesgen Yaekob Ergano: Department of Economics, Andhra University, Visakhapatnam, Andhra Pradesh, India.
Shemsu Fitamo: Department of Economics, Wachemo University, Ethiopia.
Sure Pulla Rao: Department of Economics, Andhra University, Visakhapatnam, Andhra Pradesh, India.

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Abstract: The purpose of this research was to estimate the determinants of Saving and Credit Cooperatives on financial intermediation: a case study of Dalocha Woreda, Siltie Zone, Southern Ethiopia. A cross-sectional research design with a mixed research approach was used in the study. A multistage sampling technique was used to collect the required data from 264 cooperative members. A binary logistic model was used to estimate the determinants of saving and credit cooperatives on financial intermediation. The availability of defaulters, according to descriptive statistics, was the main challenge that hamper Saving and Credit cooperatives. According to the binary logistic result, the main determinants of Saving and Credit Cooperatives on financial intermediation in the study area were gender, education level, farm income, access to extension services, year of membership, distance, and livestock amount in Total livestock unit. Except for the distance to the cooperative, all significant factors have a positive impact on financial intermediation. As a result, the researcher suggests that appropriate interventions be implemented in the study area.

Date: 2023-06-01
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Published in Asian Journal of Advances in Research, 2023, 6 (1), pp.237-245

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05120001

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