Title:
EFFECT OF INFORMAL CREDIT TO MAIZE PRODUCTOVITY IN SUMBAWANGA RURAL AND MBOZI DISTRICTS IN TANZANIA

Authors:
Dionis Joseph Ndolage; Gwahula Raphael and Saganga Kapaya ,Tanzania

Abstract:
This study aimed at examining the effect of informal credit to maize productivity of rural smallholder farmers in Sumbawanga rural and Mbozi districts in Tanzania. The study was guided by the theory of financial intermediation and neoclassical economic growth theory. The research design was descriptive quantitative in nature where balanced panel data for the year 2018 to 2020 was used. Random effect model was used to analyze 321 sample observations of the collected secondary data which involved 107 individuals. The results indicated that informal credit has significant and positive effect on maize productivity. It was also revealed that informal credit has significant and positive association with maize productivity. The study concludes that informal credit is predictor of maize productivity to rural smallholder farmers in Tanzania. Thus, it is recommended that policy makers (government) should set policies that encourage the increase of financial access points, reduced transaction costs and enrolling agricultural trustworthy agents in rural areas