ABSTRACT
The study compared cash savings
and indebtedness among rural farm and non farm households in Akwa Thom State.
It was designed to ascertain the factors that determine cash savings and
indebtedness among rural farm and non farm households respectively and also
examine the relationship between savings and indebtedness among the farm and
non farm families. A multi stage sampling procedure aided by pre-sampling
survey was adopted in selecting respondents for the study. A total of252
respondents (comprising 108 from rural farms and 144 non farm families) were
randomly selected for the study. Data used in this study were generated using a
well structured questionnaire. In analyzing the data, descriptive statistics,
Ordinary Least Square regression analysis, probit regression model and simple
correlation were employed. The result obtained on the socio economic
characteristics of respondents revealed that farmers were more elderly; less
educated and have larger household size than their non farm counterpart. Income
and cash savings of non farmers were relatively higher, and their debts were less
than those of farmers. The factors that were statistically significant in
influencing rural household saving behaviour (with respect to allocative
choice) were household size, age, level of education, income, professional
experience and distance. The significant variable that influence borrowing
behaviour of rural household includes; household size, age, level of education,
loan size, professional experience, size of business, distance, interest. loan
duration, source of borrowing and income. Among the farm households, factors
that significantly influence cash savings were income, age, households' size,
educational level, business size and interest rate. With respect to non farm
households, four statistically significant variables including income, distance,
business size, and interest rate determined cash savings. The coefficients of
multi determination (R) were 0.931 and 0.341 for rural farmers and non farmers
respectively. Results on indebtedness indicated that five variables were
significant in influencing indebtedness of farm families and non farm families
respectively. These are loan duration, income, age, educational level,
household size and loan size. The coefficients of multiple determinations (R)
were 0.876 and 0.841 for farm and non farm respondents respectively. Chow's
test revealed that there is significant difference between cash saving and
indebtedness of rural farmers and non farmers respectively, and the correlation
result show that farmers' saving to debt ratio is I: 0.95 while non farmers ratio
is I: 0.307. The study recommends that to increase income, boost saving and
reduce indebtedness, indigenous financial agencies and cooperative union in
rural areas should be massively encouraged with soft loans through the
government poverty alleviation program to increase their loan able funds for
on-lending to rural entrepreneur.
GODSWILL, J (2023). Comparative Study On Savings And Indebtedness Among Rural Farm And Non Farm Households In Akwa Ibom State, Nigeria:-Inyang, Godswill .J.. Mouau.afribary.org: Retrieved Nov 23, 2024, from https://repository.mouau.edu.ng/work/view/comparative-study-on-savings-and-indebtedness-among-rural-farm-and-non-farm-households-in-akwa-ibom-state-nigeria-inyang-godswill-j-7-2
JIMMY, GODSWILL. "Comparative Study On Savings And Indebtedness Among Rural Farm And Non Farm Households In Akwa Ibom State, Nigeria:-Inyang, Godswill .J." Mouau.afribary.org. Mouau.afribary.org, 17 Oct. 2023, https://repository.mouau.edu.ng/work/view/comparative-study-on-savings-and-indebtedness-among-rural-farm-and-non-farm-households-in-akwa-ibom-state-nigeria-inyang-godswill-j-7-2. Accessed 23 Nov. 2024.
JIMMY, GODSWILL. "Comparative Study On Savings And Indebtedness Among Rural Farm And Non Farm Households In Akwa Ibom State, Nigeria:-Inyang, Godswill .J.". Mouau.afribary.org, Mouau.afribary.org, 17 Oct. 2023. Web. 23 Nov. 2024. < https://repository.mouau.edu.ng/work/view/comparative-study-on-savings-and-indebtedness-among-rural-farm-and-non-farm-households-in-akwa-ibom-state-nigeria-inyang-godswill-j-7-2 >.
JIMMY, GODSWILL. "Comparative Study On Savings And Indebtedness Among Rural Farm And Non Farm Households In Akwa Ibom State, Nigeria:-Inyang, Godswill .J." Mouau.afribary.org (2023). Accessed 23 Nov. 2024. https://repository.mouau.edu.ng/work/view/comparative-study-on-savings-and-indebtedness-among-rural-farm-and-non-farm-households-in-akwa-ibom-state-nigeria-inyang-godswill-j-7-2