Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression

We assess the contribution of participation in bundled service-bundled VSLAs on rice productivity and profit among smallholder rice farmers in Mvomero District, Tanzania. The study propensity score matching (PSM) and endogenous switching regression (ESR) models, and found that participation in VSLA...

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Main Authors: Rozalia P. Mtenga, Anthony Funga, Michael Kadigi
Format: Article
Language:English
Published: Elsevier 2024-06-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188824000194
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author Rozalia P. Mtenga
Anthony Funga
Michael Kadigi
author_facet Rozalia P. Mtenga
Anthony Funga
Michael Kadigi
author_sort Rozalia P. Mtenga
collection DOAJ
description We assess the contribution of participation in bundled service-bundled VSLAs on rice productivity and profit among smallholder rice farmers in Mvomero District, Tanzania. The study propensity score matching (PSM) and endogenous switching regression (ESR) models, and found that participation in VSLA has a positive and significant contribution to rice productivity and profit for smallholder rice farmers. Participation in VSLAs increases farmers' ability to regenerate income for investing in improving productivity and profitability and enhancing rice sector development. VSLAs prove as a tool for building financial capital through savings and easy access to credit in rural areas. This study improves on existing research and offers new insights into the effects of VSLA as one of the financial inclusion tools on the economic activities of agricultural households in Tanzania.
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spelling doaj.art-4a1a4f53defc41e08226f07ccaad8efc2024-06-16T05:46:56ZengElsevierSustainable Futures2666-18882024-06-017100169Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regressionRozalia P. Mtenga0Anthony Funga1Michael Kadigi2Department of Policy Planning and Management, Sokoine University of Agriculture (SUA), P.O. Box 3035, Morogoro, TanzaniaDepartment of Biosciences, Sokoine University of Agriculture (SUA), P.O. Box 3038, Morogoro, TanzaniaDepartment of Policy Planning and Management, Sokoine University of Agriculture (SUA), P.O. Box 3035, Morogoro, Tanzania; Corresponding author.We assess the contribution of participation in bundled service-bundled VSLAs on rice productivity and profit among smallholder rice farmers in Mvomero District, Tanzania. The study propensity score matching (PSM) and endogenous switching regression (ESR) models, and found that participation in VSLA has a positive and significant contribution to rice productivity and profit for smallholder rice farmers. Participation in VSLAs increases farmers' ability to regenerate income for investing in improving productivity and profitability and enhancing rice sector development. VSLAs prove as a tool for building financial capital through savings and easy access to credit in rural areas. This study improves on existing research and offers new insights into the effects of VSLA as one of the financial inclusion tools on the economic activities of agricultural households in Tanzania.http://www.sciencedirect.com/science/article/pii/S2666188824000194Rice productivityRice profitabilityAgricultural creditVSLA participationPropensity score matching, and Endogenous switching regression
spellingShingle Rozalia P. Mtenga
Anthony Funga
Michael Kadigi
Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
Sustainable Futures
Rice productivity
Rice profitability
Agricultural credit
VSLA participation
Propensity score matching, and Endogenous switching regression
title Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
title_full Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
title_fullStr Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
title_full_unstemmed Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
title_short Participation in village savings and lending associations and rice profitability in Tanzania: Application of propensity score matching and endogenous switching regression
title_sort participation in village savings and lending associations and rice profitability in tanzania application of propensity score matching and endogenous switching regression
topic Rice productivity
Rice profitability
Agricultural credit
VSLA participation
Propensity score matching, and Endogenous switching regression
url http://www.sciencedirect.com/science/article/pii/S2666188824000194
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AT anthonyfunga participationinvillagesavingsandlendingassociationsandriceprofitabilityintanzaniaapplicationofpropensityscorematchingandendogenousswitchingregression
AT michaelkadigi participationinvillagesavingsandlendingassociationsandriceprofitabilityintanzaniaapplicationofpropensityscorematchingandendogenousswitchingregression