Factors Affecting the Rural Poverty and its Vulnerability

Subject Areas : Extension and Economic

O. F  Ogebe ¹ (Department of Agricultural Economics, Federal University of Agriculture, PMB 2373 Makurdi, Benue State, Nigeria)
M. A  Adejo ² (Department of Agricultural Economics, Federal University of Agriculture, PMB 2373 Makurdi, Benue State, Nigeria)
P. A  Burbuwa ³ (Department of Agricultural Economics, Federal University of Agriculture, PMB 2373 Makurdi, Benue State, Nigeria)

Received: 2020-06-04 Accepted : 2020-06-22 Published : 2020-06-30

Keywords: Households, Determinants, Expenditure,

Abstract :

Thestudy assessed the determinants and vulnerability to rural poverty in Nigeria using 2018-2019 Nigerian Living Standards Survey data. Binary probit regression model was used to ascertain the determinants of poverty and probability of the household being vulnerable to poverty. Linear regression model was used to ascertain how various kinds of households’ characteristics impact on the likelihood that the household will fall into poverty. The probit estimates showed that economic growth, debt, inflation, investment, corruption, life expectancy, and unemployment rate were major determinants of poverty in Nigeria as they have potential to aggravate poverty. It was found that lower household size is associated with low vulnerability to poverty. The odd ratios of the probit model showed that household characteristics of age, household size, female-headed households and households located in northern zones of the country are significantly correlated with poverty and are major socio-economic determinants of household vulnerability to poverty. The rate of decrease in vulnerability is marginal in all other northern zones relative to north east but larger in the southern geopolitical zones. Vulnerability to poverty is a more serious issue in Nigeria, particularly in the north-eastern part of the country. The research recommends creation of enabling environment that encourages small and medium scale business to thrive in order to reduce the level of unemployment which has pervasive effect on poverty.

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