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

Abstract

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