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What Influences Rice Farmers’ Choices of Credit Sources in Côte d’Ivoire? An Econometric Analysis using the Multinomial Conditional Logit Model

Author

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  • N’Banan Ouattara

    (College of Economics and Management, Huazhong Agricultural University, Wuhan, China Centre Suisse de Recherches Scientifiques en Côte d’Ivoire, Abidjan, Côte d’Ivoire)

  • Xueping Xiong

    (College of Economics and Management, Huazhong Agricultural University, Wuhan, China)

  • Moussa Bakayoko

    (Agence pour le Développement de la Filière Riz (ADERIZ), Abidjan, Côte d’Ivoire)

  • Trazié Bertrand Athanase Youan Bi

    (Centre Suisse de Recherches Scientifiques en Côte d’Ivoire, Abidjan, Côte D’Ivoire UFR Sciences Économiques et Développement, Université Alassane Ouattara, Bouaké, Côte d’Ivoire)

  • Dessalegn Anshiso Sedebo

    (College of Economics and Management, Huazhong Agricultural University, Wuhan, China)

  • Zié Ballo

    (UFR Sciences Économiques et Gestion, Université Félix Houphouët-Boigny, Abidjan, Côte d’Ivoire)

Abstract

In Côte d’Ivoire, the low participation of smallholder farmers in the credit market remains a matter of concern. This study examines the key determinants of rice farmers’ participation in the credit market. We use a Multinomial Conditional Logit model to consider the characteristics related to the use of different credit sources. A total of 588 rice farmers were randomly sampled from seven rice areas. Our findings reveal that gender, age, education level, experience in rice farming, rice plot size, lowland rice farming, extension contact, membership of a farmer-based organization, marketing of paddy rice, and off-farm income significantly influence the use of different credit sources. While credit requirements such as saving plus collateral, kinship/friendship, membership, favoured client, loan maturity, and the distance between borrowers and lenders are credit source-specific variables that significantly determine rice farmers’ choices between different credit sources. These empirical results show that in addition to farmer-specific variables, policymakers should consider the characteristics of credit sources for developing a credit market suitable for smallholder farmers.

Suggested Citation

  • N’Banan Ouattara & Xueping Xiong & Moussa Bakayoko & Trazié Bertrand Athanase Youan Bi & Dessalegn Anshiso Sedebo & Zié Ballo, 2022. "What Influences Rice Farmers’ Choices of Credit Sources in Côte d’Ivoire? An Econometric Analysis using the Multinomial Conditional Logit Model," Progress in Development Studies, , vol. 22(2), pages 149-173, April.
    • Handle: RePEc:sae:prodev:v:22:y:2022:i:2:p:149-173
    DOI: 10.1177/14649934211066453
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