Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya
Thesis (PhD)--Stellenbosch University, 2024.
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Published: |
Stellenbosch : Stellenbosch University
2025
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613919055446016 |
|---|---|
| access_status_str | Open Access |
| author | Wamalwa, Wanzala Richard |
| author2 | Marwa, Nyankomo |
| author_browse | Marwa, Nyankomo Wamalwa, Wanzala Richard |
| author_facet | Marwa, Nyankomo Wamalwa, Wanzala Richard |
| author_sort | Wamalwa, Wanzala Richard |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description |
Thesis (PhD)--Stellenbosch University, 2024. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/131968 |
| institution | Stellenbosch University (South Africa) |
| last_indexed | 2026-06-10T12:43:47.401Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/131968 The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya Wamalwa, Wanzala Richard Marwa, Nyankomo Nanziri, Lwanga Elizabeth Stellenbosch University. Faculty of Economics and Management Sciences. School of Public Leadership Agricultural credit -- Kenya Loans, Foreign -- Kenya Agriculture -- Economic aspects -- Kenya Sustainable development -- Kenya Coffee industry -- Kenya Agricultural innovations -- Kenya UCTD Thesis (PhD)--Stellenbosch University, 2024. ENGLISH SUMMARY: Coffee farming contributes significantly to Kenya's economic development by providing a source of income for smallholder farmers, creating jobs along the value chain, and contributing foreign exchange earnings. Despite its importance, coffee production has steadily declined, with its contribution to total exports falling from 40 percent in 1985 to 0.42 percent in 2019. It has been hypothesized that agricultural credit influences coffee production and the overall growth of the agricultural sector ecosystem. With this hypothesis in mind, the Kenyan government established the Commodity Fund as an experiment to either prove or disprove the hypothesis. As a result, the goal of this research is to determine the impact of agricultural credit on coffee production in Kiambu County, Kenya. The study specifically seeks to answer three research questions: (a) What effect does agricultural credit have on coffee input demand? (b) What effect does agricultural credit have on coffee farmers' technical efficiency and technological gap ratio? (c) What effect does agricultural credit have on coffee productivity? Existing literature does not provide a comprehensive analysis of the impact of agricultural credit on Kenyan coffee production. For example, in Kenya, where agricultural credit intervention to boost coffee production began in 2006, coffee production has steadily declined. According to Miles (2007), this represents a knowledge gap that has piqued the interest of coffee value chain players and policymakers. The prior literature also falls short of demonstrating that a lack of credit restricts farmers' access to inputs and cutting-edge technology, predisposing them to embrace sub-optimal combinations of inputs or technological sets, among other things. This exemplifies the empirical gap in previous studies (Miles, 2007). Thus, the agricultural credit-coffee production nexus should be investigated to gain a comprehensive understanding of this conundrum. Furthermore, some of these unexplored empirical gaps appear to be significant and warrant further investigation in the context of the agricultural credit-coffee production nexus. The study employed a quasi-experimental design and included 174 farmers, with 87 treated (or participating farmers) and 87 control (non-participating farmers). The study relied on both primary and secondary data gathered from smallholder coffee farmers and the Commodity Fund. Different estimation strategies were used for the four objectives. For the first objective, the two-stage least squares on the differenced data method was used to estimate the impact of credit on factor demands of inputs. The Data Envelopment Analysis (DEA) approach was used to estimate coffee production efficiency for non-participating coffee farmers in the credit program, and the meta-frontier approach was used to determine technology gap ratios. The third goal advocates using the DEA Malmquist index to estimate coffee production efficiency for both participating and non-participating coffee farmers in the credit program. According to the findings for the first objective, agricultural credit increased demand for inputs. For the second objective, the TGR estimates empirically demonstrate that coffee production by participating farmers operated on a higher frontier than non-participating farmers, implying that participating farmers are technically more efficient than non-participating farmers. The final goal suggests that agricultural credit had a positive impact on coffee productivity. AFRIKAANSE OPSOMMING: By verskaf inkomste aan kleinholderboere, skep werk in die waardeketting en genereer buitelandse valuta, speel coffee farming 'n beduidende rol in Kenya se ekonomiese groei. Coffeeproduksie het stadig afgeneem, ten spyte van sy belangrikheid. Dit het van 1985 tot 2019 0.42 percent van die totale uitvoer uitgemaak. Daar word verwag dat agricultural krediet 'n impak sal he op nie net die vervaardiging van koffie nie, maar ook op die algehele groei van die agricultural omgewing. Die Keniaanse regering het die Commodity Fund geskep as 'n eksperiment om die hipotese te toets. As gevolg hiervan is die doel van hierdie studie om die impak van agricultural credit op die vervaardiging van koffie in Kiambu County, Kenya, te bepaal. (a) Wat is die impak van agricultural credit op die vraag na koffie-insette? (b) Wat is die impak van agricultural credit op die technical efficiency and technological gap ratio van coffee farmers? (c) Wat is die impak van agricultural credit op koffieproduksie? Daar is geen uitgebreide navorsing oor die impak van agricultural krediet op Kenya se koffieproduksie nie. For instance, sedert agricultural credit intervention in coffee production in Kenya in 2006 begin het, het die land se coffeeproduksie geleidelik afgeneem. Volgens Miles (2007) dui dit op 'n tekort aan kennis wat die belangstelling van beide coffee value chain-deelnemers en politici aangewakker het. Daarbenewens is die vorige navorsing onvoldoende om te demonstreer dat 'n gebrek aan krediet belemmer farmers se toegang tot eersterangse inputs en nuutste tegnologie, wat hulle, onder andere, geneig maak om die mees ondoeltreffende kombinasies van inputs of technological sets te gebruik. This illustrates the empirical lack of previous research (Miles, 2007). As sodanig moet die verband tussen agricultural credit and coffee production ondersoek word om 'n volledige begrip van hierdie probleem te verkry. Boonop blyk dit dat sommige van die empiriese gapings wat nog nie bestudeer is nie, baie belangrik is en verdien verdere navorsing oor die verband tussen agricultural krediet en koffieproduksie. Die studie het 'n quasi- eksperimentele ontwerp gebruik. Daar was 174 boere betrokke, waarvan 87 behandeling (of deelname) en 87 kontrole (of deelname nie). Primere en sekondere data van kleinboere koffieboere en die Bedryfsfonds is in die studie gebruik. Vir die vier doelwitte is verskillende skattingsmetodes gebruik. Die impak van krediet op faktoreise van insette vir die eerste doelwit is beraam deur gebruik te maak van die twee-stadium kleinste kwadrate op die verskil data metode. Doeltreffendheid van koffieproduksie vir nie-deelnemende koffieboere aan die kredietprogram is geassesseer deur middel van die Data Envelopment Analysis (DEA) tegniek en die meta-grens tegniek. Gebruik van die DEA Malmquist index om die effektiwiteit van koffieproduksie te bepaal vir coffee farmers wat in die credit program is en die wat nie daarin is nie, is die third goal. As gevolg van agricultural krediet het die vraag na inputs toegeneem, volgens die resultate van die eerste doelwit. Vir die tweede doelwit toon die TGR-ramings empiries aan dat deelnemende boere se koffieproduksie op 'n hoer grens as nie-deelnemende boere bedryf het; dit dui daarop dat deelnemende boere tegnies meer doeltreffend is as nie-deelnemende boere. Volgens die laaste doelwit het koffieproduksie verbeter as gevolg van agricultural credit. Doctoral 2025-05-02T12:32:31Z 2025-05-02T12:32:31Z 2024-12 Thesis https://scholar.sun.ac.za/handle/10019.1/131968 Stellenbosch University xvi, 130 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Agricultural credit -- Kenya Loans, Foreign -- Kenya Agriculture -- Economic aspects -- Kenya Sustainable development -- Kenya Coffee industry -- Kenya Agricultural innovations -- Kenya UCTD Wamalwa, Wanzala Richard The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title | The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title_full | The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title_fullStr | The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title_full_unstemmed | The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title_short | The impact of agricultural credit on demand for factors of production, farm productivity, efficiency and technological gap ratio in Kenya |
| title_sort | impact of agricultural credit on demand for factors of production farm productivity efficiency and technological gap ratio in kenya |
| topic | Agricultural credit -- Kenya Loans, Foreign -- Kenya Agriculture -- Economic aspects -- Kenya Sustainable development -- Kenya Coffee industry -- Kenya Agricultural innovations -- Kenya UCTD |
| url | https://scholar.sun.ac.za/handle/10019.1/131968 |
| work_keys_str_mv | AT wamalwawanzalarichard theimpactofagriculturalcreditondemandforfactorsofproductionfarmproductivityefficiencyandtechnologicalgapratioinkenya AT wamalwawanzalarichard impactofagriculturalcreditondemandforfactorsofproductionfarmproductivityefficiencyandtechnologicalgapratioinkenya |