Effect of Cooperatives on the Savings Behaviour of Members in Oyi Local Government Area, Anambra State, Nigeria
This paper assessed the effect of cooperative on the savings behavior of members. The study was carried out in Oyi LGA with data from 195 randomly selected members of credit cooperatives. Analysis of data was with descriptive statistical tools such as mean, tables, and frequency counts. Also a multiple regression model was utilized to assess determinants of savings behaviour. Results from the study show that cooperative membership impacted positively on the savings behavior of members. Findings show that older members had more savings than newer members. Although the marginal propensity to save (MPS) was a 9.3%, it was significant since it showed that rural dwellers were capable of saving in cash. Moreover most of these savings were made through the savings mechanism of cooperatives. Length of membership in cooperative was also found to be an important determinant of savings thus confirming that the older one is in the cooperative, the more he is likely to save. In line with the findings of the study, it is recommended among others for membership drive to attract more rural dwellers into the membership of cooperatives; and the need for credit cooperatives to convert to multipurpose cooperatives to enable them to be more involved in the economic activities of the members, like supply of farm inputs and agricultural marketing.
Key words: Savings, savings behavior, rural areas, credit cooperatives, lifecycle hypothesis
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