Impact of bank of agriculture credit’s on agricultural productivity in South Western Nigeria

Wasiu Adedamola Rasaki () and Omotoso Abeeb Bababtunde ()

Agriculture and Food Sciences Research, 2024, vol. 11, issue 2, 87-95

Abstract: This study examined the impact of Bank of Agriculture (BOA) credit facilities on agricultural productivity in the South-West region of Nigeria. A multi-stage sampling technique was employed to select 225 beneficiaries and 630 non-beneficiaries farmers. Descriptive statistics were implemented to investigate the socio-economic attributes of the respondents. Impact of credit was analyzed using Propensity Score Matching (PSM), and the productivity of producers was analyzed using Total Factor Productivity (TFP). The respondents' average age was 47.6 years, and 87.0% of them were male. The average PSM score was 0.269, with four matching methods (Nearest Neighbour, Radius, Kernel, and Stratification matching) being implemented. The maximum and minimum propensity were 0.8207 and 0.0525, respectively. Both the balancing property and the region of common support (0.0503, 0.8209) were satisfied. The average treatment effect on the productivity differences of the treated (ATT) was approximately 0.347, and this difference was statistically significant at the 1% level. Productivity of ATT varied by approximately 21.0%. In summary, this investigation provided compelling evidence that the BOA credits have a positive impact on agricultural productivity in the South West. It was suggested that administrations at all levels and financial stakeholders should collaborate to ensure that producers have access to credit.

Keywords: Credit; Productivity; Impact; Radius; Kernel; Stratification matching. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.asianonlinejournals.com/index.php/AESR/article/view/6169/2893 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:agafsr:v:11:y:2024:i:2:p:87-95:id:6169

Access Statistics for this article

More articles in Agriculture and Food Sciences Research from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().