Adopting an Empirical Perception from the Vector Error Correction Model Technique to Examine the Influence of Credit availability on Rice Productivity in Sierra Leone

Abstract

Through the help of the vector error correction model technique, this research work explored the effect of credit availability on rice productivity in Sierra Leone in the period 1986–2021. Results from the analysis revealed that an increase in credit availability would cause an upsurge in rice productivity. Furthermore, this work showed that a sudden decrease in labor and investment would bring about a decrease in rice productivity whereas a sudden increase in inflation and money availability would lead to an increase in rice productivity in Sierra Leone. From the evidence on this findings, it is suggested that state owned financial institutions ought to provide a system that will afford loans that are free of interest rate to rice cultivators. Similarly, administrators ought to inspire rice cultivators through the provision of farm inputs such as land, high yield rice seed varieties and fertilizers to rice cultivators