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Social Capital refers to the networks of relationships that are built on trust to facilitate collective
action in a community. The role of social capital in enhancing various aspect of farm production has
become increasingly important. This article aims at examining the effect of structural and cognitive
dimensions of social capital on expenditure on farm inputs in Kilombero Valley, Tanzania. Data was
collected in the 2013/14 farming season in five selected villages of the study area from 309
randomly selected households. A structured questionnaire was the main tool for data collection.
Analysis involved the use a Tobit regression which considers censored dependent variable. The
results shows that farm households in Kilombero have cooperative attributes based on strong ties,
kinships and networks. Households with high membership density and which invest on trust
relationships were more likely to have increased spending on farm inputs. The other cognitive
dimension of social capital, social cohesion, is particularly relevant in ensuring farm labour
availability. The results generally support hypothesis that, social capital relax farm input liquidity
constraints. Formulation of rural development strategies should thus aim at promoting formation of
social groups and networks, which may address input liquidity concerns. |
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