Role of rural market to rural economic development: The case of Nyandira market
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Date
2015
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Publisher
Mzumbe University
Abstract
Agriculture is the foundation of Tanzanian economy, which accounts for more than one-quarter of GDP, provides 85% of exports, and employs about 80% of the work force. However, agriculture in Tanzania faces a limited market access, largely attributed to lack of access and use of market information by commodity chain actors, farmers being the most disadvantaged group. A study was conducted at Nyandira village, Morogoro region to assess the role of rural market to rural economic development. The target population for the study was small scale farmers who were producers of vegetables and sold their produce in the established market premises in the village. A total of 120 Small scales farmers were studied using questionnaires. Both probability and non-probability sampling methods were used. Secondary data were collected through documentary review while primary data were collected using questionnaires and Interview of key informants. Findings of the study indicate that rural markets contribute to rural economic development. A total of 53.8 % of the small scale farmers covered by the study indicated that marketing activities of their agricultural produce have improved their income and livelihood. In addition, employment opportunities were created and access to basic services and infrastructure were improved. The study also revealed that there were notable changes in resource allocation at farm level and an increase in crop production and output in areas under the influence of the Nyandira market. Most of the respondents (99.1 %) indicated that they sold their produce immediately after harvest, indicating that marketing their produce was not a constraint. The study further revealed that the existence of rural market infrastructure increased the power of respondents to bargain prices with traders, and also increased the number of traders in the area of the study. Most respondents (95.7%) indicated that the existence of the rural market facilities in the area increased their employment opportunities and cash from market activities has increased the circulation of money in the area around the market, thus contributing to the local economic growth.
Description
A dissertation submitted to the school of business in partial fulfillment of the requirements for award of the Degree of Master of Science in Accounting and Finance (MSc. A&F) of Mzumbe University, Morogoro.
Keywords
House Hold Income, Rural Market Infrastructure, Social Economic Development
Citation
APA