Credit Behavior of Public Market Vendors in Cabuyao, Laguna During Covid-19, 2023

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ruby Jane C. Estadilla

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

This paper studied the credit behavior of the vendors of the Cabuyao public market during COVID-19. Due to the pandemic, several health protocols were implemented in Cabuyao City which affected the market operations of the vendors due to the limited operating hours and the adoption of the mobile palengke program. Added costs were incurred due to the usage of face masks, face shields, and alcohol and there were income forgone because of the curfew and the restrictions in mobility of the weekly customers.

The specific objectives of the study were to: (1) describe the Cabuyao City, Laguna public market vendors and their market operations during COVID-19 pandemic; (2) describe the credit behavior of the public market vendors in terms of the source of the loan, loan availment, loan utilization, and loan repayment; (3) determine the factors that affect the source of the loan of the vendors; (4) evaluate the factors that affect the amount of loan and loan utilization of the vendors; (5) assess the factors that affect the loan repayment of the vendors; and (6) draw possible recommendations based on the results of the study.

Multinomial logit regression analysis, multivariate regression analysis, and logit regression analysis were employed in the analysis using the response of the 61 agricultural vendors interviewed. The results showed that collateral, added costs incurred and income forgone due to the pandemic, weekly customers, weekly sales, adoption of mobile palengke program, and emergence of talipapa were all statistically significant in influencing the source of loan of the vendors. Moreover, aside from the added costs incurred due to the pandemic, weekly sales was also statistically significant in influencing the amount of loan that the vendors acquire, while the dependency ratio, income forgone, and curfew were all significant in the loan utilization of the vendors relative to business operations. Lastly, weekly customers was found to be statistically significant in the loan repayment performances of the vendors.

Based on the findings of the study, it was recommended for the vendors to not solely rely on the income of the public market, take collateral into consideration before borrowing, maintain a good relationship with the lender and the customers, and minimize added costs by using reusable face masks. Meanwhile it is recommended for the lenders to be more lenient in terms of collateral and repayment schedule.

Language

English

LC Subject

Markets -- Employees, Epidemic

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 D45

Notes

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Document Type

Thesis

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