Analysis of factors influencing transaction costs among cocoyam buying households in Abia state
This study identified factors that influenced transaction cost among cocoyam buying households in Abia state, Nigeria. Data were collected from a random sample of 200 cocoyam buying households. The respondents were drawn from rural and urban markets in the two agricultural zones of the state. Data collected were analyzed using simple statistical tools like frequency table, percentages and multiple regression analysis. The result shows that the trade is dominated by married people, almost equal proportions of females (51.0%) and males (49%) participate in cocoyam marketing in the study area. About 58% of cocoyam marketers were relatively young individuals who are in their youthful age (36-45 years). The result also shows that 92 .0% of the cocoyam marketers had one form of education or another while 8.0% had no formal education. Coefficients of farm size, ownership of tractor/vehicles, membership of cooperative society, storage capacity, and number of cocoyam traders in the village were negatively signed and the coefficients for education and good road condition were positively signed. This result shows that education acquired by the households decreased their transaction cost. The transaction costs and participation in buying cocoyam could be improved by reliable information and provision of basic infrastructures to facilitate faster delivery of cocoyam to consumers. There is need to intensify awareness campaigns to popularize the crop nationally and its benefits emphasized.
Keywords: Transaction costs, cocoyam, buying households