Participation in village savings and lending associations and rice profitability in Tanzania: application of propensity score matching and endogenous switching regression
Loading...
Date
2024-02-13
Journal Title
Journal ISSN
Volume Title
Publisher
Sustainable Futures
Abstract
We assess the contribution of participation in bundled service-bundled VSLAs on rice productivity and profit
among smallholder rice farmers in Mvomero District, Tanzania. The study propensity score matching (PSM) and
endogenous switching regression (ESR) models, and found that participation in VSLA has a positive and sig
nificant contribution to rice productivity and profit for smallholder rice farmers. Participation in VSLAs increases
farmers’ ability to regenerate income for investing in improving productivity and profitability and enhancing rice
sector development. VSLAs prove as a tool for building financial capital through savings and easy access to credit
in rural areas. This study improves on existing research and offers new insights into the effects of VSLA as one of
the financial inclusion tools on the economic activities of agricultural households in Tanzania.
Description
Journal article
Keywords
Rice productivity, Rice profitability, Agricultural credit, VSLA participation, Propensity score, matching, Endogenous switching regression