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Determinants of Smallholder Vegetable Farmers Credit Access and Demand in Southwest region, Cameroon

Victor Afari-Sefa (), Jean Claude Bidogeza (), Yannick Djoumessi () and Cyrille Kamdem ()
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Victor Afari-Sefa: AVRDC - The World Vegetable Center
Jean Claude Bidogeza: Africa Risk Capacity
Yannick Djoumessi: Université de Dschang
Cyrille Kamdem: University of Yaoundé II-Soa

Economics Bulletin, 2018, vol. 38, issue 2, 1231-1240

Abstract: The study analyzed the determinants of smallholder vegetable farmer’s access and demand to credit. Primary data were collected from hundred randomly selected farmers with the aid of structured questionnaires using multi-stage sampling procedures. One common approach used to modeling this situation is the tobit model. However, the decision taken by farmers to demand credit is preceded by the decision to have “access to credit†. Therefore, a double-hurdle model was specified and used to determine factors influencing credit access and demand. Econometric results show that age has a positive and significant value on the quantity equation, but negative and significant on the access equation. The study concluded that the spread of lending agencies, membership to farmers’ association, extension service, large farm size increase both access to and demand for credit. In addition, small and female farmers should be encouraged to form associations to ensure appropriate information sharing and advantage of non-rationing credit

JEL-codes: D1 Q1 (search for similar items in EconPapers)
Date: 2018-06-21
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