Analysis of socio-economic determinants of credit demand by agricultural households in Togo
DOI:
https://doi.org/10.18559/rielf.2025.1.2446Keywords:
socioeconomic factors, credit demand, farm households, Togo, binary LogitAbstract
Purpose: The aim of this article is to identify the socioeconomic factors that influence the demand for credit by agricultural households in Togo.
Design/methodology/approach: To this end, we use a binary logit model applied on data from the EHCVM 2018 survey (Harmonized Survey of Household Living Conditions, 2018).
Findings: The results of the binary logistic regression analysis reveal a positive and significant correlation between agricultural households' access to financial services and variables such as the household head's level of formal education, the household head's marital status, the size of the household farm, the soil types of the household farm as well as household income. These variables are determining factors in farm households' access to financial services. These results highlight the need to strengthen public policies aimed at improving this access, in particular by focusing on the variables identified.
Originality/value: The originality of this research lies in its empirical anchoring in the Togolese context, thus offering a relevant contribution to the understanding of socio-economic factors influencing farm households' demand for credit, and to the development of more inclusive and effective agricultural financing policies.
JEL Classification
Microeconomics (B21)
Discrete Regression and Qualitative Choice Models • Discrete Regressors • Proportions (C35)
Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts (H81)
Agricultural Markets and Marketing • Cooperatives • Agribusiness (Q13)
Agricultural Finance (Q14)
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