Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 20 ISSUE 4
Written by Doris Chidiebere ANOLIEFO, Chibuzor, N. NWACHUKWU, Nnanna, M. AGWU
The study investigated the determinants of capitalization among rice processing enterprise in Ebonyi State, Nigeria. It specifically analysed he level of capitalization in the rice processing enterprise and estimated the determinants of capitalization among the processors. Data were ollected using well-structured questionnaire, administered to one hundred and twenty respondents that constitute the sample size for the tudy. Data analysis involved descriptive statistics such as frequency concept and ordinary least square model. It was observed that that rocessors are medium-sized since none of them were able to invest more than ₦1,000,000. The double-log form was chosen as the lead equation. he F-ratio was statistically significant at 1% probability level indicating high goodness of fit of the regression line. The R2 of 0.788 hows that about 78.8% changes in the investment of the rice processors were accounted for by changes in the explanatory variables included in he model while the remaining 21.2% was accounted for by error. The result shows that age, education, experience and off-firm income were ositively related to the amount of capital invested by rice processors and negatively related to nature of ownership and capital input. The tudy therefore recommended that government and non-governmental organization should provide necessary incentives for rice processors such as oans and other credit facilities so as to improve the efficient and productivity of the processors.
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