Impact of Constraints and Credit On the Probability of Participation: Evidence from Fish Producers in Nigeria

Abstract

Farming in Nigeria tends to be dependent on the onset of the wet season as more than 70% of those involved in farming have no access to irrigation facilities, including those in the capture and culture fishery sector. Culture fish production is not well-developed owing to the need for high capital injection into the business. That is why this study investigated the connection between constraints faced, credit obtained and probability of participation in the fish value chain by fish producers in Nigeria in order to ensure sustainable fish availability to consumers. The study involved 643 fish producers in Niger and Kebbi States and data analyzed using Garrett ranking, Structural Equation Modelling (SEM) and regression. The results obtained indicated that 48 variables out of the 65 described by the actors were considered a constraint based on the mean and the five latent factors determined were retrieved for analysis. The latent variables exhibited positive bi-directional relationship between one another indicating that the factors are not isolated occurrences. From the Propensity Score Matching (PSM) and regression, a number of policy variables were obtained which may call for further investigation. Particularly, the tendency of low probability of participation in the face of low educational acquisition. There is also a very strong indication that the actors are conducting their businesses with low capital which h as further devalue the level of participation. Ultimately, doing business with adequate capital can increase participation by up to 15% and as such, can increase outputs, income, profits and enhance livelihoods.

Publication
International Journal of Agricultural Science, Research and Technology in Extension and Education Systems (IJASRT in EESs) 14(1):37-55
Garrett ranking latent variable directional relationship difference-in-difference fish value chain
Job Nmadu
Professor of Agricultural Economics and Dean, School of Agriculture and Agricultural Technology

Research interests are economic efficiencies of small scale farming and welfare effects of agricultural interventions.

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