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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Economics of cottage industries in the rural areas of Rivers State, Nigeria: a case study of cassava grating industry
Authors:Mbata, J.N.
Ebbe, N.B.
Year:1992
Periodical:Discovery and Innovation
Volume:4
Issue:1
Period:March
Pages:45-51
Language:English
Notes:biblio. refs., ills.
Geographic terms:Nigeria
West Africa
Subjects:agricultural economy
small-scale industry
food industry
cassava
Economics, Commerce
Manihot esculenta Crantz
agroindustry
Cottage industry
Rivers State (Nigeria)
Abstract:The need to study the economics of cottage industries in rural areas as a tool for rural income generation and as a possible solution to mass urban unemployment necessitated this study. Based on the predominance of farming in the rural areas of Rivers State, Nigeria, and the growing concern for mass food production in the State, the cassava grating industry was chosen for study. A two-staged randomized sampling technique was used to select 48 investors for the purposes of data collection and analysis. The empirical findings show that the cassava grating industry has a high employment generating capacity, employing an average of five persons per firm. Furthermore, the results of the profit function analysis show that the investors exhibit a positive response in relation to input and output prices. It is therefore recommended that the government should come out with a price policy which will lower input prices (wages and interest rate amongst others) and increase the profit margins in an effort to maintain a favourable price-profit relationship in cottage industries. This will encourage investment and thus contribute to the development of the rural areas by increasing the earning capacities of the rural majority through the generation of employment opportunities. Bibliogr., sum. also in French.
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