Determinants of Investment at the Individual Level
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Date
2017-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Tanzania Institute of Accountancy
Abstract
Abstract- Investment is the corner stone for economic growth and
development. Poor countries experience a scant growth of their
economy simply because of minute investment at the individual
to national level. In these less developed economiesinvestment has
been hampered by insufficient capital to support a viable
business enterprise. External financing is required to reverse this
trend. Experience shows that the provision of credit is the
preeminent way to increase capital for investment. There have
been several credit providers in developing countries namely, the
formal, semiformal, and informal sources. While the formal and
semiformal sources dominate in urban areas, the informal ones
seem to dominate in rural areas. Many of the formal sources
require credit to be secured by tangible assets. Unlike other
credit lines like banks, credit from saving and credit cooperative
(SACCOS) are issued without delay because credit worthiness
can be established easily. These SACCOS normally operate
within the premises of members and are well positioned to serve
poor people both in urban and rural areas.This study was
conducted to assess the determinants of investment at the
individual level. Multistage and simple random sampling
techniques were used to select the study area and respondents.
The sample includes 239 SACCOS members and 241 non
members. Data analysis employed both descriptive statistics and
Ordinary least square regression methods. The study examines
achievement differences in terms of the investment level achieved
by SACCOS and non SACCOS members in order to determine
the attributed factors to their success. The study provides
sufficient evidence to support the proposition that acquisition of
credit is important for investment at an individual level at
P<0.001.
Description
Keywords
Determinants, Investment, SACCOS, Credit, Tanzania