Factors Affecting the Rural Poverty and its Vulnerability

الموضوعات :

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)

تاريخ الإرسال : 12 الخميس , شوال, 1441 تاريخ التأكيد : 01 الإثنين , ذو القعدة, 1441 تاريخ الإصدار : 09 الثلاثاء , ذو القعدة, 1441

الکلمات المفتاحية: Households, Determinants, Expenditure,

ملخص المقالة :

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.

المصادر:

1. Addae-Korankye, A. (2014). Causes of poverty in Africa: A review of literature. American International Journal of Social Science,3(7); 147-153.


2. Adepoju, A. O. and Yusuf, S. A. (2012). Poverty and vulnerability in rural south-west Nigeria. ARPN Journal of Agricultural and Biological Science, 7(6); 430-437.


3. Aigbokhan, B. E. (2000). Determinants of regional poverty in Nigeria. Working Paper No.22, March, Development Policy Centre, Ibadan.


4. Aigbokhan, B. E. (2012). “Poverty, growth and inequality in Nigeria. African Economic Research Consortium (AERC) Research Paper (RP) No. 120.


5. Ajakaiye, D. O. and Adeyeye, V. A. (2001). “Concepts, measurement and causes of poverty in Nigeria: CBN Economic and Financial Review, 39(4): 1-17.


6. Alayande, B. and Alayande, O.  (2004). A quantitative and qualitative assessment of vulnerability to poverty in Nigeria. A Paper Submitted for Presentation of CSAE Conference on Poverty Reduction and Human Development in Africa, March, 2004.


7. Alemi, N. M. and Dereje, F. D. (2014). Determinants of Vulnerability to Poverty in Female Headed Households in Rural Ethiopia. Global Journal of Human-Social Science, 14(5): 9-15.


8. Chaudhuri, S. (2003). Assessing Household Vulnerability to Poverty: Concepts, Empirical Methods and Illustrative Examples. Mimeo: Columbia University New York.


9. Chaudhuri, S., Jalan, J. and Suryahadi, A. (2002). Assessing Household Vulnerability to Poverty: A Methodology and Estimates for Indonesia, Columbia University Department of Economics Discussion Paper No. 0102-52, New York: Columbia University.

10. Gunther, I. and Harttgen, K. (2006). Households Vulnerability to Covariate and Idiosyncratic shocks (Preliminary Draft). India: RED Data.

11. Gunther, I. and Harttgen, K. (2009). Estimating vulnerability to idiosyncratic and covariate shocks. World Development, 37(7):1222-1234.

12. Kolawole, B. O., Omobitan, A. O. and Yaqub, J. O. (2015). Poverty, inequality and rising growth in Nigeria: Further empirical evidence. International Journal of Economics and Finance, 7(2): 51-62.

13. Mohammed-Hashim, Y. (2008). “Incidence of poverty in Nigeria: Causes and consequences. Journal of Research in National Development, 6(1); 22-30.

14. National Bureau of Statistics [NBS] (2019). Poverty Profile for Nigeria, Abuja.

15. Nigeria Economic Report [NER] (2014). Improved Economic Outlook in 2014 and Prospects for Continued Growth Look Good: World Bank. Retrieved 2020-05-27.

16. Nigerian Living Standards Survey [NLSS] (2019). Poverty and Inequality in Nigeria. National Bureau of Statistics Report.

17. Obi, B. O. (2007). Fiscal policy and poverty alleviation: Some policy options for Nigeria: AERC Research Paper 164, African Economic Consortium, Nairobi.

18. Ogwumike, F. O. (2001). An appraisal of poverty reduction strategies in Nigeria. Central Bank of Nigeria. Economic and Financial Review (CBN), 39(4): 111-134.

19. Ogwumike, F. O. and Ozughahu, U. (2013). Vulnerability to Food Poverty in Nigeria. African Development Review, 25(3): 243-255.

20. Ogwumike, F. O. and Ozughahu, U. (2018). “Empirical Evidence of Child Poverty and Deprivation in Nigeria”. African Development Review, 77(1): 12-22.

21. Okosun, I., Siwar, C., Hadi, S. A. and Nor, R. M. (2012). Urban poverty in Nigeria and approaches to poverty alleviation: A review. African Journal of Political Science and International Relations,6(1): 8-14.

22. Oni, A. O. and Yusuf, S. A. (2008). Determinants of Expected Poverty among Rural Households in Nigeria. African Economic Research Consortium (AERC) Research Paper (RP) No. 183.

23. Sparks, D. (2018). The Informal Sector in sub-Saharan Africa. Out of the Shadow to Foster Sustainable Employment and Equity. International Business and Economic Research Journal, 8(11): 222-228.

24. World Bank. (2011). World Development Report 2011: Reshaping Economic Geography. Washington, DC: World Bank.

25. World Bank. (2019). The World Bank In Nigeria. Overview, Available on the: https://www.worldbank.org/en/country/nigeria/overview

26. Yusuf, A. (2011). A Theoretical Analysis of the Concept of Informal Economy and Informality in Developing Countries. Europeans Journal of Social Science, 20(4): 44-52.