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Access To Credit And Physical Capital Stock: A Study Of Non-Farm Household Enterprises In Nigeria

Author

Listed:
  • Obed I. Ojonta

    (University of Nigeria, Nsukka)

  • Jonathan E. Ogbuabor

    (University of Nigeria, Nsukka)

Abstract

This study investigated the influence of access to credit on the physical capital stock of non-farm household enterprises in Nigeria. The study used the binary logistic regression technique and Nigeria’s 2018-19 General Household Survey data (Wave 4). We find that the influence of access to credit on the physical capital stock of nonfarm household enterprises in Nigeria is positive and significant. This implies that access to credit enhances the capacity of these enterprises to procure physical capital stock. Our results also indicate that expenditure on raw materials, profit, and years of operations are other key drivers of physical capital stock accumulation. Consequently, we conclude that there is a need for policies to enhance access to credit by non-farm household enterprises in Nigeria to strengthen their operations on a sustainable basis.

Suggested Citation

  • Obed I. Ojonta & Jonathan E. Ogbuabor, 2021. "Access To Credit And Physical Capital Stock: A Study Of Non-Farm Household Enterprises In Nigeria," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(4), pages 631-640, December.
    • Handle: RePEc:idn:journl:v:24:y:2021:i:4f:p:631-640
    DOI: https://doi.org/10.21098/bemp.v24i4.1515
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    More about this item

    Keywords

    Access to credit; Non-farm household enterprises; Physical capital stock; Binary logit model.;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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