A Double-Hurdle Model of Financial Capital Use and Use Incidence among Two Processing Groups of Financial Capital Users in Oyo and Ogun States, Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue XI, November 2019 | ISSN 2321–2705

A Double-Hurdle Model of Financial Capital Use and Use Incidence among Two Processing Groups of Financial Capital Users in Oyo and Ogun States, Nigeria

Matthew Olufemi Adio

Department of Agricultural Economics, Ladoke Akintola University of Technology, P. M. B 4000, Ogbomoso, Nigeria

Abstract – The study evaluated the impacts of financial capital use on the livelihood outcomes of cassava processors in Oyo and Ogun States, Nigeria. A multistage sampling technique was used to select a sample of 540 small scale cassava processors in Oyo and Ogun States. Data on socioeconomic characteristics, quantity and value of raw cassava roots, labour (man-day) and access to financial capital were collected with the aid of structured questionnaire. Double Hurdle (DH) model was used to analyse the use and use incidence of financial capital. The results showed that that age, education, processing experience and trainings attended were statistically significant in determining the use incidence of financial capital. It is therefore concluded that education coupled with further trainings and extension visit should be encouraged by processing stakeholders since they were discovered to be important determining factors in the use and use incidence of formal financial capital.

Keywords: Double Hurdle, Financial Capital, Use, Use Incidence and Processing Groups

I. INTRODUCTION

Virtually all cassava produced in Africa is used for human consumption. Seventy percent (70 %) of the amount consumed is first processed into a large variety of products such as paste, flour and chips, and then cooked into foods serving both rural and urban populations as a basic daily source of dietary energy [12]. Demand for cassava, according to [15] as food was expected to grow at an annual rate of 2.5% per year and the demand for cassava as livestock feed at 5%. In the former case, there are observations indicating that cassava is increasingly being adopted as an ingredient in the manufacture of convenient fast foods and snacks for urban consumers.
In several African countries, cassava is being more and more perceived not only as a food security crop, but also as a raw material for various types of industries

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