The study examined the socio-economic factors influencing the participation of rural farming households in barter trade in Ondo State, Nigeria. The objectives were to compare the socio-economic characteristics of the participants and non-participants of barter trade, analyze the preference for barter trade and identify the constraints to it. Also, the factors affecting respondents’ participation in barter trade were identified. Primary data used for the study were collected with the aid of a structured questionnaire from 200 respondents who were selected using multi-stage sampling technique. Data analytical tools utilized included descriptive statistics, SWOT analysis and Probit model. Empirical results indicated that there were significant differences in the socio-economic characteristics of the participants and non-participants in barter trade. The SWOT analysis showed that possession of agrarian attributes by the locality where the trade is practised was the strongest factor ensuring the survival of barter in the study area. Double coincidence of wants was found to be the most prevailing weakness associated with barter while the major reason for participation by some households was that the quantity of commodities received are usually higher compared with cash transactions. Transportation cost to barter markets was found to be the greatest threat to the continued existence of barter trade in the area. The results of the Probit model showed that age, household size, transportation cost to cash markets, farm size, distance to barter markets, and formal education significantly affected the probability participating in barter trade.
1. Introduction
2. METHODOLOGY
3. RESULTS AND DISCUSSION
CONCLUSION