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Investigating Endogeneity Effects of Social Capital on Household Welfare in Nigeria: A Control Function Approach

Author

Listed:
  • Adepoju, Adebusola A.
  • Oni, O. A.

Abstract

This study examined the relationship between social capital and household welfare. Primary data was collected from 300 households in the rural southwest of Nigeria. The age of respondents; sex, education, marital status, household size and farming status make a significant contribution to changes in household welfare. Also, the decision making index and meeting attendance are statistically significant and both are positively and negatively related to household welfare, respectively. Results of the two stage least square reveal the exogeneity of social capital. However, the use of the control function model indicates that social capital is truly endogenous to household welfare due to non-linear interactions between social capital and unobservable variables.

Suggested Citation

  • Adepoju, Adebusola A. & Oni, O. A., 2012. "Investigating Endogeneity Effects of Social Capital on Household Welfare in Nigeria: A Control Function Approach," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(1), pages 1-24, February.
    • Handle: RePEc:ags:qjiage:155473
    DOI: 10.22004/ag.econ.155473
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    Cited by:

    1. Christina Kinghan & Carol Newman, 2015. "Social capital, political connections, and household Enterprises: Evidence from Vietnam," WIDER Working Paper Series wp-2015-001, World Institute for Development Economic Research (UNU-WIDER).
    2. Ernan Rustiadi & Ahmadriswan Nasution, 2017. "Can Social Capital Investment Reduce Poverty in Rural Indonesia?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 109-117.
    3. Nazim Habibov & Alena Auchynnikava & Rong Luo, 2019. "Does Community Level Trust Improve Self-Rated Welfare?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 669-697, December.
    4. Kien Le & My Nguyen, 2020. "The impacts of farmland expropriation on Vietnam’s rural households," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1560-1582, November.
    5. My Nguyen & Kien Le, 2023. "The impacts of women's land ownership: Evidence from Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 158-177, February.
    6. Vanessa Sha Fan & Renuka Mahadevan, 2019. "The Role of Social Capital and Remote Chinese Villagers’ Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1109-1128, June.
    7. Carol Newman & Christina Kinghan, 2015. "Social capital, political connections, and household enterprises: Evidence from Vietnam," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).
    8. Braga, Cicero & Neves, Mateus & Costa, Lorena, 2021. "Off-Farm Work and Income Inequality in Rural Brazil," 2021 Conference, August 17-31, 2021, Virtual 314994, International Association of Agricultural Economists.

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