A Dissertation submitted in Fulfillment of the Requirement for Award of the
Degree of Master of Science in Economics (PPM) of Mzumbe University
2013
The study was concerned with the analysis of socio-economic factors affecting cashew
nut production with special reference to Ruangwa District Council. Data collection was
through structured questionnaire administered to 200 respondents selected through
random sampling technique. The overall aim of this study was to investigate the socio-
economic factors that affect production of cashew nuts in Ruangwa District. The study
objective was realized through the utilization of the multiple linear regression models
since model consisted seven variables, F-test and Z-test were used to test the overall
significance of the variables. The main objective in using this technique was to predict
the variability of the dependent variable based on its covariance with all the independent
variables.
The methods of analysis used were descriptive statistics and production function
analysis using the Ordinary Least Square (OLS) criterion to estimate the parameters of
the production function. Econometric techniques were used to estimate the determinants
of cashew production. Linear regression analysis using SPSS (16) and STATA (9)
software programs were employed for the modeling of cashew nut production as
determined by postulated determinants and to assess the relative importance of various
variables. Results showed that majority of the farmers were Female engaged in cashew
nut production. Cashew nut farming was the main activity as a minimum farm size was
4.125 acres. Results further revealed that farm size (acreage) physical capital, fertilizer,
Price, extension services, primary education were positively related to cashew output
while labour and secondary education were inversely related.
Based on findings, the study recommend that the government should emphasize on
following in order to increase the production of cashew nut including: increase of land
size for the purpose of increasing marginal productivity, use of fertilizers, provision of
credits to farmers and improvement of infrastructures including roads, communication
infrastructures and energy.