Authors : Zuhura Mohammed Aballah and Ali Mohammed Ali
Abstract: 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 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 1985-2016, Ordinary Least Square (OLS) method is employed in running regression. The finding of the study shows a significant negative effect of 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.
Zuhura Mohammed Aballah and Ali Mohammed Ali, 2019. Effects of Systmatic Risk Factors on Profitability of Cassava Farming in Zanzibar. International Business Management, 13: 600-605.