Araştırma Makalesi
BibTex RIS Kaynak Göster

Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria

Yıl 2021, , 179 - 186, 01.05.2021
https://doi.org/10.33462/jotaf.665710

Öz

The growth of poultry industry is very relevant to the economy of Nigeria. Poultry farm growth may respond to debt financing positively over time up to a threshold, beyond which it becomes a burden to the business. The debt threshold of poultry farms is still not significantly understood by stakeholders in the industry. Therefore this study derives its significance by examining the asymmetric relationship between debt financing and the growth of small scale poultry farms in Nigeria. Multi-stage procedure for selection of sample was employed to involve two hundred and forty (240) poultry farmers in the survey. Primary data collected with structured questionnaire were analyzed using descriptive statistical tools (mean, percentage, standard deviation). Inferential statistical formula (Ordinary Least Square technique of multiple regression model) was employed for data analysis. Result indicates that 6% of total asset was financed by debt while 94% was financed by owner’s equity (personal fund). This indicates that debt threshold of 50% was neither attained nor exceeded. Further result shows that the growth indicators namely stock size, revenue and poultry owners’ equity responded positively to debt financing status but to a small extent. Significant determinants of debt financing status of poultry farms identified in the study were: farm age, farm size, terms of loan, loan duration, loan sources and owners’ equity. Debt financing positively impacted poultry farm growth. This implies that surveyed poultry farms are in the tolerable debt level where owners equity is higher than total debt owed. The study has established a positive causal relationship between debt financing and the growth of poultry farms in Delta State, Nigeria. The study has further accentuated the centrality of credit financing as a catalyst in the growth and development of the poultry industry. There is sufficient evidence to advocate for more loans to support the growth of small scale poultry farms. More access to external debt financing is recommended to boost small scale poultry farms’ growth in Nigeria. A more efficient credit market will serve as an incentive to the credit seeking behaviour of borrowers (small scale poultry farmers) in Nigeria.

Kaynakça

  • Abereijo, D. and A.O. Fayomi, (2005). Innovative approach to SMES financing in Nigeria. A review of SMES. Journal of Social Science 2(3): 219-227.
  • Achoja, F. O. (2012) Multipliers Effect of Micro Credit Investment Among Small Scale Poultry Agribusiness enterprenuers in Delta State, Nigeria.Tropical Agricultural Research and Extension 15(3),29-32.
  • Achoja F.O., Chukwuji C.O. (2013) Response of Poultry Agribusiness Risk to Financial Fragility and Macroeconomic Shocks in Nigeria (2004-2009) AgriculturaTropica Et Subtropica, 46/1, 16-22,
  • Akanni K.A. (2007) Effects of micro-finance on small scale poultry business in South Western Nigeria Emirate Journal of Food and Agriculture. 19(2): 38 – 47.
  • Akinbogun, T. L. (2008). The impact of Nigerian business environment on the survival of small-scale ceramic industries: Case study, South-Western Nigeria. Journal of Asian and African Studies, 43(6), 663-679.
  • Ali, R. and Mustafa,U. (2012): External Debt Accumulation and Its Impact on Economic Growth in Pakistan, The Pakistan Development Revie 51:4 Part Ii (Winter 2012) Pp. 51:4, 79–96
  • Bosnjak D., Rodic V. (2008): Regional Livestock Dispersion and Density in Serbia. Contemporary Agriculture 57 (93-4): 164-170. Bulow, J., Rogoff, K. (1990), Cleaning Up Third-World Debt without Getting Taken To the Cleaners. Journal of Economic Perspectives, 4, 31-42.
  • Caner, M.T. Grennes and Koehler-Geib, F., (2010). Finding the Tipping Point – When SovereignDebt Turns Bad. World Bank Policy Research Working Paper. No. 5391.
  • Cecchetti, S., Mohanty, M. and Zampolli, F., (2011). The real effects of debt. BIS Working Paper.No. 352.
  • Chowdhury, A.R. (2001), External debt and growth in developing countries: A sensitivity and causal analysis. Discussion Paper 95. World Institute for Development Economics Research (WIDER), United Nations University, Helsinki.
  • Domar, Evsey D. 1944. “The Status of the Debt and the NationalIncome”. American Economic Review, Vol. 34, No.4
  • .Easterly, William R. 2001. “Growth Implosions and Debt Explosions: Do Growth Slowdowns Cause Public Debt Crises? “Contributions toMacroeconomics, Vol. 1, No.1.
  • Easterly, W. (1999), The ghost of financing gap: Testing the growth model used in the international financial institutions. Journal of Development Economics, 60(2), 423-438.
  • Eblog (2018) Global Significance of poultry farming. https://efarms.com.ng/blogs/2018/04/25/global-significance-poultry-farming/
  • Elmeskov, Jørgen and Douglas Sutherland. 2012. “Post-Crisis Debt Overhang: Growth Implications across Countries”. Second International Research Conference on “Monetary Policy, Sovereign Debt and Financial Stability: The New Trilemma”, 1-2 February, 2012, Reserve Bank of India, Mumbai, India.
  • Federal Republic of Nigeria Official Gazette (2007) No. 55Lagos –1June, Vol.94
  • Food and Agriculture Organization (FAO) (2007). Poultry in the 21st Century: Avian Influenza and Beyond. (eds) Proceedings of the International Poultry Conference, held 5-7th November 2007. Bangkok, Thailand
  • FAOSTAT (2009), Food Security Statistics. Faust, Jon (2013) “Will Higher Corporate Debt Worsen Future Recessions?”
  • Greene, J., Villanueva, D. (1991), Private investment in developing. IMF Staff Papers, 38, 33-58.
  • Greenidge, K., Craigwell, R., Thomas, C and Drakes, L., 2012. Threshold Effects of Sovereign Debt: Evidence from the Caribbean. IMF Working Paper. No.12-157.
  • Hameed, A., Ashraf, H., Chaudhary, M.A. (2008), External debt and its impact on economic and business growth in Pakistan. International Research Journal of Finance and Economics, 20, 132-140
  • Helfert E. A., (2008) Techniques of Financial Analysis, Sixth Edition, Universal Bookstall, New Delhi P.48
  • Hodges J. (2009): Emerging Boundaries for Poultry production: Challenges, Dangers and Opportunities. World’s Poultry Science Journal, 65:5-22. Knight F.B. (1957): Risk Uncertainty and Profit (Houghton Mifflin Co., Boston, New York´
  • IMF (2002) Uploaded by Dao Ha, External Debt and Economic Growth in Vietnam: A Nonlinear Relationship Krugman, P. (1988), Financing vs. forgiving a debt overhang: Some analytical notes. Journal of Development Economics, 29, 253-268.
  • Levitsky, J. (1996) “Support System for SMEs in Developing Countries: A Review”, Paper commissioned by the Small and Medium Industries Branch, United Nations Industrial Development Organization.
  • Levy-Livermore, A., Chowdhury, K. (1998), Handbook on Globalization of the World Economy. Cheltenham, UK: Edward Elgar Publishing Limited.
  • Nigeria Population Commission (2006) Annual Report.
  • Odoemenem U.I., Obinne C.P. (2010), Assessment of Agricultural Credit Availability to Small Scale Farmers In Southeastern Nigeria. Journal of Agribusiness and Rural Development, 1:2-4
  • Olutunla, G. T. and Obamuyi, T. M. (2008) “An Empirical Analysis of Factors Associated with the Profitability of Small and Medium Enterprises in Nigeria”. African Journal of Business Management, Vol.2, No.10, pp. 195-200.
  • Oni, E. O. and Daniya, A. A. (2012). Development of Small and Medium Scale Enterprises: The Role of Government and other Financial Institutions. Arabian Journal of Business and Management Review (OMAN Chapter), 1(7), February, 16-29
  • Onwukwe, V. C. and Ifeanacho, M. I. (2011). Impact of government intervention on the growth of small and medium scale enterprises in Imo State. International Journal of Research in Commerce, Economics & Management, 1(7), 1-5, November.
  • Pattillo, C., Poirson, H., Ricci, L. (2004), what are the channels through which external debt affects growth? IMF Working Paper 04/15. Washington, DC.
  • Reinhart, C. M. and Rogoff, K. S. (2010). “Growth in a Time of Debt,” American Economic Review, 100(2); 573–78.
  • Reinhart, C.M. and Rogoff, K. S. (2010) “Debt and Growth Revisited”
  • Reinhart, C. M., Reinhart, V. R. and Rogoff, K. S. (2012). “Public Debt Overhangs: Advanced-Economy Episodes since 1800,” Journal of Economic Perspectives, 26(3);69–86.
  • Reinhart, Carmen M, Vincent R Reinhart and Kenneth S. Rogoff. (2012) “Debt Overhangs: Past and Present”. National Bureau of Economic Research (18015)

Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria

Yıl 2021, , 179 - 186, 01.05.2021
https://doi.org/10.33462/jotaf.665710

Öz

The growth of poultry industry is very relevant to the economic growth in Nigeria. Poultry farm growth may respond to debt financing either positively or negatively over time. So the purpose of this research was to examine the asymmetric relationship between debt financing and the growth of poultry farms in Nigeria. Multi-stage procedure for selection of sample was employed to involve two hundred and forty (240) poultry farmers in the survey. Primary data collected with structured questionnaire were analyzed using descriptive statistical tools (mean, percentage, standard deviation). Inferential statistical formula was employed for data analysis. Result indicates that 6% of total asset was financed by debt indicating that debt threshold of 50% was neither attained nor exceeded. Growth in stock size, revenue and poultry owners’ equity responded positively to debt financing but to a small extent. Significant determinants of debt status of poultry farms identified were: farm age, farm size, loan condition, loan duration, loan sources and owners’ equity. The study focused on a sample of poultry farms in developing nation so caution should be exercised in over generalization of the outcome. More access to external debt financing is recommended to boost poultry farms’ growth in Nigeria.

Kaynakça

  • Abereijo, D. and A.O. Fayomi, (2005). Innovative approach to SMES financing in Nigeria. A review of SMES. Journal of Social Science 2(3): 219-227.
  • Achoja, F. O. (2012) Multipliers Effect of Micro Credit Investment Among Small Scale Poultry Agribusiness enterprenuers in Delta State, Nigeria.Tropical Agricultural Research and Extension 15(3),29-32.
  • Achoja F.O., Chukwuji C.O. (2013) Response of Poultry Agribusiness Risk to Financial Fragility and Macroeconomic Shocks in Nigeria (2004-2009) AgriculturaTropica Et Subtropica, 46/1, 16-22,
  • Akanni K.A. (2007) Effects of micro-finance on small scale poultry business in South Western Nigeria Emirate Journal of Food and Agriculture. 19(2): 38 – 47.
  • Akinbogun, T. L. (2008). The impact of Nigerian business environment on the survival of small-scale ceramic industries: Case study, South-Western Nigeria. Journal of Asian and African Studies, 43(6), 663-679.
  • Ali, R. and Mustafa,U. (2012): External Debt Accumulation and Its Impact on Economic Growth in Pakistan, The Pakistan Development Revie 51:4 Part Ii (Winter 2012) Pp. 51:4, 79–96
  • Bosnjak D., Rodic V. (2008): Regional Livestock Dispersion and Density in Serbia. Contemporary Agriculture 57 (93-4): 164-170. Bulow, J., Rogoff, K. (1990), Cleaning Up Third-World Debt without Getting Taken To the Cleaners. Journal of Economic Perspectives, 4, 31-42.
  • Caner, M.T. Grennes and Koehler-Geib, F., (2010). Finding the Tipping Point – When SovereignDebt Turns Bad. World Bank Policy Research Working Paper. No. 5391.
  • Cecchetti, S., Mohanty, M. and Zampolli, F., (2011). The real effects of debt. BIS Working Paper.No. 352.
  • Chowdhury, A.R. (2001), External debt and growth in developing countries: A sensitivity and causal analysis. Discussion Paper 95. World Institute for Development Economics Research (WIDER), United Nations University, Helsinki.
  • Domar, Evsey D. 1944. “The Status of the Debt and the NationalIncome”. American Economic Review, Vol. 34, No.4
  • .Easterly, William R. 2001. “Growth Implosions and Debt Explosions: Do Growth Slowdowns Cause Public Debt Crises? “Contributions toMacroeconomics, Vol. 1, No.1.
  • Easterly, W. (1999), The ghost of financing gap: Testing the growth model used in the international financial institutions. Journal of Development Economics, 60(2), 423-438.
  • Eblog (2018) Global Significance of poultry farming. https://efarms.com.ng/blogs/2018/04/25/global-significance-poultry-farming/
  • Elmeskov, Jørgen and Douglas Sutherland. 2012. “Post-Crisis Debt Overhang: Growth Implications across Countries”. Second International Research Conference on “Monetary Policy, Sovereign Debt and Financial Stability: The New Trilemma”, 1-2 February, 2012, Reserve Bank of India, Mumbai, India.
  • Federal Republic of Nigeria Official Gazette (2007) No. 55Lagos –1June, Vol.94
  • Food and Agriculture Organization (FAO) (2007). Poultry in the 21st Century: Avian Influenza and Beyond. (eds) Proceedings of the International Poultry Conference, held 5-7th November 2007. Bangkok, Thailand
  • FAOSTAT (2009), Food Security Statistics. Faust, Jon (2013) “Will Higher Corporate Debt Worsen Future Recessions?”
  • Greene, J., Villanueva, D. (1991), Private investment in developing. IMF Staff Papers, 38, 33-58.
  • Greenidge, K., Craigwell, R., Thomas, C and Drakes, L., 2012. Threshold Effects of Sovereign Debt: Evidence from the Caribbean. IMF Working Paper. No.12-157.
  • Hameed, A., Ashraf, H., Chaudhary, M.A. (2008), External debt and its impact on economic and business growth in Pakistan. International Research Journal of Finance and Economics, 20, 132-140
  • Helfert E. A., (2008) Techniques of Financial Analysis, Sixth Edition, Universal Bookstall, New Delhi P.48
  • Hodges J. (2009): Emerging Boundaries for Poultry production: Challenges, Dangers and Opportunities. World’s Poultry Science Journal, 65:5-22. Knight F.B. (1957): Risk Uncertainty and Profit (Houghton Mifflin Co., Boston, New York´
  • IMF (2002) Uploaded by Dao Ha, External Debt and Economic Growth in Vietnam: A Nonlinear Relationship Krugman, P. (1988), Financing vs. forgiving a debt overhang: Some analytical notes. Journal of Development Economics, 29, 253-268.
  • Levitsky, J. (1996) “Support System for SMEs in Developing Countries: A Review”, Paper commissioned by the Small and Medium Industries Branch, United Nations Industrial Development Organization.
  • Levy-Livermore, A., Chowdhury, K. (1998), Handbook on Globalization of the World Economy. Cheltenham, UK: Edward Elgar Publishing Limited.
  • Nigeria Population Commission (2006) Annual Report.
  • Odoemenem U.I., Obinne C.P. (2010), Assessment of Agricultural Credit Availability to Small Scale Farmers In Southeastern Nigeria. Journal of Agribusiness and Rural Development, 1:2-4
  • Olutunla, G. T. and Obamuyi, T. M. (2008) “An Empirical Analysis of Factors Associated with the Profitability of Small and Medium Enterprises in Nigeria”. African Journal of Business Management, Vol.2, No.10, pp. 195-200.
  • Oni, E. O. and Daniya, A. A. (2012). Development of Small and Medium Scale Enterprises: The Role of Government and other Financial Institutions. Arabian Journal of Business and Management Review (OMAN Chapter), 1(7), February, 16-29
  • Onwukwe, V. C. and Ifeanacho, M. I. (2011). Impact of government intervention on the growth of small and medium scale enterprises in Imo State. International Journal of Research in Commerce, Economics & Management, 1(7), 1-5, November.
  • Pattillo, C., Poirson, H., Ricci, L. (2004), what are the channels through which external debt affects growth? IMF Working Paper 04/15. Washington, DC.
  • Reinhart, C. M. and Rogoff, K. S. (2010). “Growth in a Time of Debt,” American Economic Review, 100(2); 573–78.
  • Reinhart, C.M. and Rogoff, K. S. (2010) “Debt and Growth Revisited”
  • Reinhart, C. M., Reinhart, V. R. and Rogoff, K. S. (2012). “Public Debt Overhangs: Advanced-Economy Episodes since 1800,” Journal of Economic Perspectives, 26(3);69–86.
  • Reinhart, Carmen M, Vincent R Reinhart and Kenneth S. Rogoff. (2012) “Debt Overhangs: Past and Present”. National Bureau of Economic Research (18015)
Toplam 36 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Makaleler
Yazarlar

Felix Achoja 0000-0002-9705-4923

Nwamaka Nwokolo 0000-0002-0568-1779

Yayımlanma Tarihi 1 Mayıs 2021
Gönderilme Tarihi 26 Aralık 2019
Kabul Tarihi 2 Aralık 2020
Yayımlandığı Sayı Yıl 2021

Kaynak Göster

APA Achoja, F., & Nwokolo, N. (2021). Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria. Tekirdağ Ziraat Fakültesi Dergisi, 18(2), 179-186. https://doi.org/10.33462/jotaf.665710
AMA Achoja F, Nwokolo N. Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria. JOTAF. Mayıs 2021;18(2):179-186. doi:10.33462/jotaf.665710
Chicago Achoja, Felix, ve Nwamaka Nwokolo. “Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria”. Tekirdağ Ziraat Fakültesi Dergisi 18, sy. 2 (Mayıs 2021): 179-86. https://doi.org/10.33462/jotaf.665710.
EndNote Achoja F, Nwokolo N (01 Mayıs 2021) Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria. Tekirdağ Ziraat Fakültesi Dergisi 18 2 179–186.
IEEE F. Achoja ve N. Nwokolo, “Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria”, JOTAF, c. 18, sy. 2, ss. 179–186, 2021, doi: 10.33462/jotaf.665710.
ISNAD Achoja, Felix - Nwokolo, Nwamaka. “Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria”. Tekirdağ Ziraat Fakültesi Dergisi 18/2 (Mayıs 2021), 179-186. https://doi.org/10.33462/jotaf.665710.
JAMA Achoja F, Nwokolo N. Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria. JOTAF. 2021;18:179–186.
MLA Achoja, Felix ve Nwamaka Nwokolo. “Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria”. Tekirdağ Ziraat Fakültesi Dergisi, c. 18, sy. 2, 2021, ss. 179-86, doi:10.33462/jotaf.665710.
Vancouver Achoja F, Nwokolo N. Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria. JOTAF. 2021;18(2):179-86.