Impact of access to cash remittances on cocoa yield in Southwestern Nigeria

Abstract

Access to cash remittances has a positive impact on the food security of people living in developing countries. However, little is known about the impact of access to cash remittances concerning cocoa yield. Therefore, the study investigates the impact of access to cash remittances on cocoa yield. A multistage sampling technique was used to select 300 cocoa farming households for the study. The data were analysed using the exponential double hurdle model (Churdle) estimation process, inverse probability weighted regression adjustment (IPWRA), and endogenous switching regression model (ESRM). According to the ATU estimate, the average farmer would produce a yield of 0.824 times more when he/she has access to cash remittances. The conditional treatment effect (ATT), which assesses the impact of access to cash remittances on cocoa yield, was correspondingly approximately 0.828 and statistically significant at 1 %. As a result, the typical farmer who has access to cash remittances would produce a yield that is 0.828 times more than it would be if he/she did not have access to cash remittances. The study found that access to cash remittances has a positive impact on cocoa yield among farmers in rural Nigeria after adjusting for both observable and unobserved factors.

Keywords

• Access to cash remittance
• Churdle
• IPWRA
• ESRM
• Cocoa yield
• Southwestern Nigeria