期刊名称:Asian Journal of Economics, Business and Accounting
印刷版ISSN:2456-639X
出版年度:2018
卷号:9
期号:2
页码:1-8
DOI:10.9734/AJEBA/2018/45517
语种:English
出版社:Sciencedomain International
摘要:Backbone of Zanzibar economy is farming. Farming contributes much in the form of profitability generated that is influenced by systematic risk factors. This study aim is to find the effect of systematic risk factors on the profitability of cassava farming in Zanzibar. The sales margin is used to measure the profitability of cassava farming in Zanzibar; while real GDP, inflation rate, lending interest rate and broad money are used as systematic risk factors. By using annual time series data from 1985 to 2016, Ordinary least square (OLS) method is employed in running the regression. The finding of the study shows a significant negative effect of the inflation rate, broad money and lending interest rate. Therefore, the Government should closely monitor and prudently manage the systematic risk factors. Moreover, Cassava producers should be aware of the changes in systematic risk factors.