Determinants of Farm Households Savings in District Kohat, KP, Pakistan
Determinants of Farm Households Savings in District Kohat, KP, Pakistan
Malik Muhammad Shafi, Rabia Habib and Haidar Ali*
ABSTRACT
For exploring key factors affecting farmers’ savings the study was designed in district Kohat (KP, Pakistan). For the purpose of data collection, interview schedule and direct observation was used as a research tools. Through random sampling technique, a sample size of 90 households from 452 farm households were taken. Total consumption expenditures, total income, and land size were the variables which showed significant results. Because their overall p-values indicates significant results at 5% significant value. Results of these variables revealed a positive relationship between household (farmers) savings and total income with coefficient 0.332143 and P-value 0.00*** and land size with coefficient 1823.08 and P-value 0.000*** in the study area. On other hand, total consumption expenditures with coefficient -0.472555 and P-value 0.00*** had a negative association with household savings in the research area. Furthermore, 56% of the farmers having household savings between the ranges of 5,000 to 9,999, PKR while 25% of farmers had household saving from zero to 4,999, PKR. Similarly, the highest 78% of sampled farmers were earning above and 49,999 PKR followed by the farmers (15%) with income from 40,000 to 49,999 PKR. According to this study, small farmers can increase their savings through the provision of off-farm opportunities. To minimizing the expenditures, the small farmers can used better household budget management technique to increase their savings.
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