ACCESS TO CREDIT AND PHYSICAL CAPITAL STOCK: A STUDY OF NON-FARM HOUSEHOLD ENTERPRISES IN NIGERIA

Obed I. Ojonta () and Jonathan E. Ogbuabor ()
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Obed I. Ojonta: University of Nigeria, Nsukka
Jonathan E. Ogbuabor: University of Nigeria, Nsukka

Bulletin of Monetary Economics and Banking, 2021, vol. 24, issue 4, 631-640

Abstract: This study investigated the influence of access to credit on the physical capital stock of non-farm household enterprises in Nigeria. The study used the binary logistic regression technique and Nigeria’s 2018-19 General Household Survey data (Wave 4). We find that the influence of access to credit on the physical capital stock of nonfarm household enterprises in Nigeria is positive and significant. This implies that access to credit enhances the capacity of these enterprises to procure physical capital stock. Our results also indicate that expenditure on raw materials, profit, and years of operations are other key drivers of physical capital stock accumulation. Consequently, we conclude that there is a need for policies to enhance access to credit by non-farm household enterprises in Nigeria to strengthen their operations on a sustainable basis.

Keywords: Access to credit; Non-farm household enterprises; Physical capital stock; Binary logit model. (search for similar items in EconPapers)
JEL-codes: C21 E51 L11 R20 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:24:y:2021:i:4f:p:631-640

DOI: 10.21098/bemp.v24i4.1515

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