The impact of cash loan on commercialisation of farming in Burkina Faso.
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The objective of the study was to provide empirical evidence on whether there is a causal relationship between cash loan and commercialisation of agriculture. The researcher used secondary cross-sectional data from FinScope Survey (2014) to estimate a regression model. The binary Logit Method was applied in this research and STATA 13 statistical package was used in estimation of the model. Ordinary Least Squares (OLS) and Probit was also applied for robustness checking. The study found out that loan, education level, infrastructure, income and market had a positive and significant influence on commercial farming. Results also show that gender had negative but significant relationship with the dependent variable. On the other hand, location and age were found to have negative and insignificant influence on commercial farming. The study recommended that government through financial institutions should put more commitments in implementing vigorously the policy of granting loan by purpose so that the segments of the nation's agricultural produce that are targeted for improved productivity will be accomplished. The study also recommends the government to use the pricing policy that will encourage farmers to produce on a larger scale and formulate farmer protection organisations among others.
- Department of Economics