THE DETERMINANTS OF CONSUMPTION PATTERN AMONG RURAL DWELLERS OF ONDO STATE (CASE STUDY OF AKOKO NORTH WEST LOCAL GOVERNMENT)

Abstract

This study, which was conducted in Akoko North West Local Government Area of Ondo State, examined the determinants of consumption among rural dwellers. The study considered the influence of some selected variables as identified by literatures related to consumption on the level of consumption in the study area. Data was obtained through primary and secondary sources. A well structured questionnaire was administered on 100 respondents randomly selected from the study areas. Data obtained was analysed with the aid of simple multiple regression analysis. Result showed that current income, expected pension fund, shares and durable assets are positively related to consumption while expected future income and deposits in banks are negatively related. Among other things, study revealed that expected future income, deposits at banks and shares are significant determinants of consumption in the study area. To raise consumption in the study area, respondents should be enlightened on how they can invest in shares. On the other hand, consumption can be reduced in the study area if interest rates on deposits are increased.