Impact of Rural Infrastructures on Smallholder Farmers’ Credit Market Participation in Ethiopia The Case of Smallholder Farmers in Jimma Zone, Oromia Region

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Tesfaye Melaku
Teklu T adesse

Abstract

This research project was principally intended to examine the impact of rural infrastructure on
the smallholder farmers’ commercialization in Jimma zone of Oromia regional state. We
employed the proportional sample approach to determine a total sample of 397 householders
from the four woreda considered. The data set necessary to our analysis was be sourced both
from the primary and secondary foundations. Besides, both the descriptive and inferential
statistical approaches were employed to analyse the data collected. The regression analysis was
employed propensity score matching method of data analysis. The descriptive statistics depict
that 76.5% of smallholder farmers responded that rural infrastructure development has
significant impact on their credit market participation. The propensity score matching estimation
result reveals that out of the three outcome variables; average yearly household income and
rural infrastructure development are statistically significant in affecting smallholder framer’s
credit market participation, but amount of loan accessed was statistically insignificant with
positive ATT. Thus, vast infrastructure investment is recommended in the study area.

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Author Biographies

Tesfaye Melaku, Jimma University, Ethiopia

Ass. Prof, Department of Economics, Jimma University, Ethiopia

Teklu T adesse, Jimma University, Ethiopia

Lecturer, Department of Economics, Jimma University, Ethiopia