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Double hurdle modelling approach to local rice consumption in Ikwuano Local Government Area of Abia State, Nigeria

S.C. Onya, C.A. Okezie, I.V. Ejiba

Abstract


This study analysed the preference and expenditure decision on local rice of rural households in Ikwuano Local Government Area of Abia State, Nigeria. A two-stage systematic sampling technique was used in selecting 150 respondents for the study. The households were stratified based on the income levels. Data collected were analysed using descriptive statistics (such as percentages and means) and the double hurdle modeling approach. The result of the descriptive statistics showed that majority (64%) of the respondents were female, 76% were married, 94.67% were below the age of 55 years with a mean age of 41.09 years. Majority (40%) had secondary education among the household heads with a mean years spent in school of 10.56 years while majority (40%) among the spouse had primary education with a mean years spent in school of 8.69 years. The mean household size was about 6 persons. The result of the income distribution of the households showed that majority (52%) of the respondents earn between ₦ 20,000-40,000 per month while the result of the preference for rice showed that 56% prefer foreign rice to local rice. The result of the double hurdle model showed that marital status, age of the household head, education of the household head, household size, price of rice, and the quality of rice significantly influenced the preference decision of the household while marital status, age, household size, monthly income, and quality of rice significantly influenced the expenditure decision of the household in the study area. The major reasons for rice preference by the respondents were absence of foreign matter (impurities such as stones), shape of grain, stickiness after cooking, rate of breakage and cleanliness of the rice. The study recommended that modern processing techniques, which improve on locally produced rice will enable it compete favourable with imported ones; thereby increasing consumption of local rice consumption in the country.

Keywords: double hurdle, local rice, consumption




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