International Journal of Advanced Research and Publications (2456-9992)

High Quality Publications & World Wide Indexing!

Impact Of Revolving Credit Fund On The Rural Poor Economy In Western Hararghe Zone: In Case Of Some Rural Woreda

Volume 5 - Issue 3, March 2022 Edition
[Download Full Paper]

Tamiru Gabusho Ayana
Loan, revolving, West Hararghe
The study was conducted in West Hararghe zone; in case of some rural woreda to analyze impact of revolving credit fund on rural poor economy. To source of data primary data were collected from 120 members and 60 nonmembers of multipurpose cooperative. The secondary data were collected from institutions. The descriptive statistics were used to describe institutional and socio-economic characteristics of respondents. Multiple logistic models were used to analyze factors influencing average annual income and repayment performance. The amount of loan authorized to beneficiaries is not disbursed on time which may discourage farmers to demand revolving fund. About 54.00 percent of the sample respondents utilized loan fully for the purpose initially intended. Further, respondents revealed that lack of awareness; expenditure for consumption purpose and ceremonial expenditure were the main reasons for miss utilization of the revolving credit fund. It was identified out of respondent’s 80 percent were non-defaulters and 20 percent were defaulters.
[1]. Adams, D. and D. Graham, 1981. A Critique of Traditional Agricultural Credit Projects and Policies. Journal of Development Economics. Vol. 8: 374-66.

[2]. AIDB (Agricultural and Industrial Development Bank), 1993. “Zena Limat Bank”. Bulletin of June. Pp. 32-34.

[3]. Aldrich, J.H. and Nelson, F.D. 1984. Linear Probability, Logit and Probit Models: Quantitative Applications in Social Science: Sera Miller McCunn, Sage Pub. Inc; University of Minnesota and Iowa. New Delhi.

[4]. Alemayehu Gabrielino , A study on the Impact assessment of Income generating activities in Ethiopia’s, August 2006.

[5]. Anderson David R., Sweeney Dennis J., Williams Thomas A., Statistics for Business and Economics, 5thEdition, West Publishing Company.

[6]. Assefa Admissive and Franz Heid hues, 1996. Estimation of Technical Efficiency of Smallholder Farmers in Central Highlands of Ethiopia. Ethiopian Journal of Agricultural Economics. 1(1): 18-37.

[7]. Assefa admissive, 1987. A Study of Factors that Affect the Use of Agricultural Credit among Peasant Farmers in Ethiopia: A case of two District. M Sc. Thesis, Addis Ababa University, Ethiopia

[8]. Atsbi Womberta Pilot Learning Site Diagnosis and Program Design, The International Livestock Research Institute (ILRI) and Ministry of Agriculture(MoA), October 2004

[9]. Bamlak Alamirew, The Impact of ACSI on Poverty Reduction: The case of Enemay Woreda, East Gojjam, 2006, Ethiopia

[10]. Beckman, T.N.and Foster, R.S. 1969. Credits and Collections: Management and Theory.

[11]. Eighth Edition. McGraw-Hill Book Company. New Yokuts’s. Impact of revolving Credit Fund 87

[12]. Bekele Tilahun, 1985. Rural Credit in Ethiopia. In: Dejene Aredo and Mulat Demeke (eds), Ethiopian Agriculture: Problem of Transformation. Proceedings of the Fourth Annual Conference on the Ethiopian Economy. Pp. 353-372. Addis Ababa.

[13]. Belay Abebe, Factors Influencing Loan Repayment of Rural Women in Eastern Ethiopia: The Case of Dire Dawa Area, April 2002.

[14]. Food Security, Mid Term Review Report, May 2006, Mekelle.

[15]. Getachew Olana, 1993. Farmers’ Response to New Coffee Development Technologies and Factors Influencing it: The Case of Small Farmers in Gimbi CIPA, Wollega. M.Sc. Thesis, Alemaya University of Agriculture, Ethiopia.

[16]. Goetz, A.M., and R. Sen Gupta. (1996). Who takes credit? Gender, power, and control over loan use in rural credit program in Bangladesh. World development 24(1): 45-64 Impact of revolving Credit Fund 88

[17]. Gujarati, Damodar N. 1988. Basic Econometrics. Second Edition. McGraw-Hill Book Company, New York. U.S.A.

[18]. Hosmer, D.W. and Lemesshow, S. 1989. Applied Logistic Regression. A Wiley-Inter-science Publication, New York.

[19]. Hulme D (2000) “Impact Assessment Methodologies for Micro Finance: Theory, Experience and Better practice”. World Development. Vol.28, No.1, pp79-98.

[20]. Hunte, C. Kenrick, 1996. Controlling Loan Default and Improving the Lending Technology in Credit Institutions. Saving and Development. Quarterly Review-No.1: 45 59

[21]. International Feed Resources Unit (2004), Journal.

[22]. Itana Ayana (2002) Micro financing and Poverty Alleviation in Ethiopia. . In: Gebrehiwot

[23]. Ageba (ed), Micro finance Development in Ethiopia: Prospects, Sustainability and Challenges on Poverty Reduction. Proceedings of the Conference on Micro finance Development in Ethiopia, Adama (Nazreth), Ethiopia.

[24]. Jama, M.A. and Kulundu, D.M. 1992. Smallholder Farmers Credit Repayment Performance in Lugari Division, Kakamega District, Kenya. East African Economic Review. 8(2): 85-91.

[25]. Kumar, P., Joshi, P.K., and Muralitharan, M.A. 1978. Estimation of Demand for Credit on Marginal Farms A Profit -Function Approach. Indian Journal of Agricultural Economics. 33(4): 106-114.

[26]. Ledger wood, J. (1999) Sustainable Banking with the Poor: Micro finance hand Book, An Institutional and Financial Perspective, Washington, D.C.

[27]. Miller, L.F. 1977. Agricultural Credit and Finance in Africa. The Rockefeller Foundation. U.S.A.

[28]. MOA (Ministry of Agriculture), 1995. Agricultural Credit Policies. National Agricultural Workshop. Addis Ababa, Ethiopia Impact of revolving Credit Fund 89

[29]. Montgomery Douglas C. and Peck Elizabeth A., Introduction to Linear Regression, 2nd Edition.

[30]. Popiel P.A. 1994. “Financial Systems in Sub Saharan Africa”, the World Bank, USA.

[31]. Ramakrishna G. and Assefa Demeke, An Empirical analysis of Food Security in Ethiopia : The case of norther Wollo African Development ,Vol xxvII, No 1 and 2 ,2000 pp 127 – 143.

[32]. The Amhara Credit and Saving Institution Institutional Profile, Current Status and Future Strategy may 2004

[33]. Tigray Region food security Coordination bureau, Revolving Fund manual, Prepared for the World Bank Food security Project, march 2007.

[34]. Walter Milligan nogub-cotesu Reasons for the possible failure of a Revolving Fund Vecinos Mundiales, Oklahoma, 1985

[35]. Wenner, Mark D. 1995. Group credit: A Means to Improve Information Transfer and Loan Repayment Performance. Journal of Development Studies. 32(2): 263-281.