A Multinomial Logit Analysis Of Agricultural Credit Rationing By Commercial Banks In Nigeria

The study tried to identify the determinants influencing Commercial banks decision to ration agricultural credit in South-Western, Nigeria. Data for the analysis were sourced from the agricultural credit transactions of the banks. Evidence from the multinomial logit model estimated shows that the borrowers are heterogeneous. Farm size, previous income, enterprise type, coop membership, household net-worth and agricultural commercialization level are positive and significantly associated with the classification of the two groups relative to the reference group. The significant variables affect …