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

Subject Areas : Extension and Economic

Job Nmadu ¹ , Bukola Oluwatobi Oyediran ² , Halima Sallawu ³

1 - Department of Agricultural Economics and Farm Management, Federal University of Technology Minna, Nigeria
2 - Department of Agricultural Economics and Farm Management, Federal University of Technology Minna, Nigeria
3 - Department of Agricultural Economics and Farm Management, Federal University of Technology Minna, Nigeria

Received: 2024-01-03 Accepted : 2024-02-14 Published : 2024-02-29

Keywords: Garrett ranking, latent variable, directional relationship, difference-in-difference, fish value chain,

Abstract :

The study involved 643 fish value chain actors in Niger and Kebbi States in Nigeria from whom data were collected between April 2022 and February 2023 via structured questionnaire and analysed using Garrett ranking, Structural Equation Modelling (SEM) and regression. These two states have access to Rivers Niger, Shiroro and Kaduna and their various tributaries. From the results obtained, 48 variables out of the 65 described by the actors were considered a constraint based on the mean and five latent factors were determined and the values retrieved for further analysis. The latent variables exhibited positive bi-directional relationship between one another which is an indication 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 but needs to be adequately addressed. 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 has 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.

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