Relationship Between Export Finance And Cocoa Export Performance In Intermediate Cocoa Processing Firms In Southwestern Zone Of Nigeria

Abstract

This study ascertained the relationship between export finance and cocoa export performance in intermediate cocoa processing firms in Southwestern zone of Nigeria. The two main constructs employed in this study are export performance and finance. While export intensity was used to measure the former, the latter was proxy after Ebong, 2008 and Ahmed 2008's forms of export finance thus; Selffinancing (profit ploughed back), Money market financing (commercial bank loans) and Development Bank financing (NEXIM bank loans) variables. Data for this study were sourced through the administration of copies of questionnaire to six (6) out of eleven (11) intermediate cocoa processing firms in Southwestern zone of Nigeria that are registered with the Nigerian Export Promotion Council. The six (6) intermediate cocoa processing firms were purposively selected because
they were those discovered to be functioning firms as at the time of field survey exercise. It was discovered that fund sourced from Commercial banks and Ploughed back profit had significant impact on Nigeria cocoa export performance while the impact of fund sourced from Development bank was insignificant. Thus, policy makers are strongly advised to henceforth route their intervention funds/assistance to any sector through the commercial banks for effectiveness but that interest rates charged by these banks should be closely monitored.