Investment decision and level of investment in marketing of value-added products of yam and cassava in Benue State, Nigeria

Abstract

The supply gap of value-added products of yam and cassava in Nigeria has continued to widen and modeling investment in marketing of these products using Double Hurdle model is non-existence in literature. The study thus investigated factors influencing investment decision and level of investment in the marketing of valueadded products of yam and cassava in Benue State, Nigeria, using Double Hurdle model. Data were collected through structured questionnaire from 300 marketers of value-added products of yam and cassava, selected via multi-stage random sampling technique. The collected data were analyzed using descriptive statistics and Double Hurdle model. The results revealed that marketers of these products in the study area were mostly married females with moderate household size, literate, young, non-member of cooperatives, experienced, and had access to credit with akpu/fufu as the most marketed product among the marketers. Estimates of the Double Hurdle model revealed that sex, marital status, age, and membership of cooperatives were the factors influencing investment decision in the marketing of these products while sex, marital status, level of education, age, membership of cooperatives, return, and credit received were the factors influencing level of investment in the marketing of these products. In identifying factors that significantly influence investment decision and level of investment in the marketing of these products, this study provides an empirical contribution to the existing literature. It was recommended that policies geared towards increasing the level of investment in the marketing of these products should take into consideration the socio-economic characteristics of the marketers.