IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i5p705-726.html
   My bibliography  Save this article

Neighborhood Effect, Agricultural Development and Poverty Level in Nigeria

Author

Listed:
  • Oluwatobi Joshua OLOFIN

    (Department of Economics, Universität Göttingen, Göttingen, Germany)

  • Adeleke Gabriel AREMO (Ph.D)

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

  • Olabode Philp OLOFIN (Ph.D)

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

  • Oluwafemi Olawale OKUNADE

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

Abstract

The study seeks to evaluate the role of agricultural development on poverty level and ascertain whether neighbouring countries have any influence on the relation between agricultural development and poverty level in Nigeria. Annual data covering the period between 1980 and 2019 were employed. Fully Modified Ordinary Least Square (FMOLS), Canonical Cointegrating Regression (CCR) and spatial econometrics were employed. Our results showed that agricultural development is capable of reducing poverty level in the country, while there was no significant effect of spatial factors on the relationship between agricultural development and poverty level in Nigeria between 1980 and 2019. The study therefore recommends that the government should pay more attention towards improvement of agriculture, transportation and oil rent which are capable of complementing each other in reducing poverty in Nigeria.

Suggested Citation

  • Oluwatobi Joshua OLOFIN & Adeleke Gabriel AREMO (Ph.D) & Olabode Philp OLOFIN (Ph.D) & Oluwafemi Olawale OKUNADE, 2023. "Neighborhood Effect, Agricultural Development and Poverty Level in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 705-726, May.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:705-726
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-5/705-726.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/neighborhood-effect-agricultural-development-and-poverty-level-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. R. Kelley Pace & James P. LeSage, 2004. "Spatial Statistics and Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 29(2), pages 147-148, September.
    3. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    4. Crandall, Mindy S. & Weber, Bruce A., 2004. "Local Social And Economic Conditions, Spatial Concentrations Of Poverty, And Poverty Dynamics," Working Papers 18916, Oregon State University, Rural Poverty Research Center (RPRC).
    5. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    6. ADEKOYA Olusoji Adetayo, 2014. "Analysis of Farm Households Poverty Status in Ogun States, Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 325-340.
    7. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    8. Anselin, Luc, 1988. "A test for spatial autocorrelation in seemingly unrelated regressions," Economics Letters, Elsevier, vol. 28(4), pages 335-341.
    9. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    10. Dalila Cervantes-Godoy & Jonathan Brooks, 2008. "Smallholder Adjustment in Middle-Income Countries: Issues and Policy Responses," OECD Food, Agriculture and Fisheries Papers 12, OECD Publishing.
    11. María Teresa Ramírez & Ana María Loboguerrero, 2002. "Spatial Dependence and Economic Growth: Evidence From a Panel of Countries," Borradores de Economia 3522, Banco de la Republica.
    12. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    13. Egla Mansi & Eglantina Hysa & Mirela Panait & Marian Catalin Voica, 2020. "Poverty—A Challenge for Economic Development? Evidences from Western Balkan Countries and the European Union," Sustainability, MDPI, vol. 12(18), pages 1-24, September.
    14. Choi, In & Park, Joon Y. & Yu, Byungchul, 1997. "Canonical Cointegrating Regression and Testing for Cointegration in the Presence of I(1) and I(2) Variables," Econometric Theory, Cambridge University Press, vol. 13(6), pages 850-876, December.
    15. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
    16. Derek Byerlee & Alain de Janvry & Elisabeth Sadoulet, 2009. "Agriculture for Development: Toward a New Paradigm," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 15-31, September.
    17. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    18. Luc Christiaensen & Lionel Demery, 2007. "Down to Earth : Agriculture and Poverty Reduction in Africa," World Bank Publications - Books, The World Bank Group, number 6624, December.
    19. Bourguignon, F. & Morrisson, C., 1990. "Income distribution, development and foreign trade : A cross-sectional analysis," European Economic Review, Elsevier, vol. 34(6), pages 1113-1132, September.
    20. Bigman, David & Fofack, Hippolyte, 2000. "Geographical Targeting for Poverty Alleviation: An Introduction to the Special Issue," The World Bank Economic Review, World Bank, vol. 14(1), pages 129-145, January.
    21. Anselin, Luc, 1992. "Space and applied econometrics : Introduction," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 307-316, September.
    22. Hansen, Bruce E., 1992. "Testing for parameter instability in linear models," Journal of Policy Modeling, Elsevier, vol. 14(4), pages 517-533, August.
    23. Oyakhilomen, Oyinbo & Zibah, Rekwot Grace, 2014. "Agricultural Production and Economic Growth in Nigeria: Implication for Rural Poverty Alleviation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-17, August.
    24. Luc Christiaensen & Lionel Demery & Jesper Kühl, 2010. "The (Evolving) Role of Agriculture in Poverty Reduction," WIDER Working Paper Series wp-2010-036, World Institute for Development Economic Research (UNU-WIDER).
    25. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331, Elsevier.
    26. Paul Voss & David Long & Roger Hammer & Samantha Friedman, 2006. "County child poverty rates in the US: a spatial regression approach," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 25(4), pages 369-391, August.
    27. Mindy S. Crandall & Bruce A. Weber, 2004. "Local Social and Economic Conditions, Spatial Concentrations of Poverty, and Poverty Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1276-1281.
    28. Francesc Marmol & Carlos Velasco, 2004. "Consistent Testing of Cointegrating Relationships," Econometrica, Econometric Society, vol. 72(6), pages 1809-1844, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Urquía-Grande, Elena & Rubio-Alcocer, Antonio, 2015. "Agricultural infrastructure donation performance: Empirical evidence in rural Ethiopia," Agricultural Water Management, Elsevier, vol. 158(C), pages 245-254.
    2. Abro, Zewdu Ayalew & Alemu, Bamlaku Alamirew & Hanjra, Munir A., 2014. "Policies for Agricultural Productivity Growth and Poverty Reduction in Rural Ethiopia," World Development, Elsevier, vol. 59(C), pages 461-474.
    3. Urquía-Grande, Elena & Cano-Montero, Elisa I. & Pérez-Estébanez, Raquel & Chamizo-González, Julián, 2018. "Agriculture, nutrition and economics through training: A virtuous cycle in rural Ethiopia," Land Use Policy, Elsevier, vol. 79(C), pages 707-716.
    4. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    5. Tomich, Thomas P. & Lidder, Preetmoninder & Coley, Mariah & Gollin, Douglas & Meinzen-Dick, Ruth & Webb, Patrick & Carberry, Peter, 2019. "Food and agricultural innovation pathways for prosperity," Agricultural Systems, Elsevier, vol. 172(C), pages 1-15.
    6. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.
    7. Singh, Tarlok, 2010. "Does domestic saving cause economic growth? A time-series evidence from India," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 231-253, March.
    8. Khatiwada, Lila K., 2014. "Modeling and Explaining County-level Prosperity in the U.S," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    9. Ritu Rani & Naresh Kumar, 2018. "Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries," Emerging Economy Studies, International Management Institute, vol. 4(1), pages 1-18, May.
    10. Krishna Murari, 2017. "Financial Development–Economic Growth Nexus: Evidence from South Asian Middle-income Countries," Global Business Review, International Management Institute, vol. 18(4), pages 924-935, August.
    11. Charles G. Renfro, 2009. "The Practice of Econometric Theory," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75571-5, July-Dece.
    12. Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Clark University, vol. 90(2), pages 129-154, April.
    13. Daniel Francois Meyer, 2019. "An Assessment Of The Importance Of The Agricultural Sector On Economic Growth And Development In South Africa," Proceedings of International Academic Conferences 9912288, International Institute of Social and Economic Sciences.
    14. repec:asg:wpaper:1013 is not listed on IDEAS
    15. Qunyong Wang & Na Wu, 2012. "Long-run covariance and its applications in cointegration regression," Stata Journal, StataCorp LP, vol. 12(3), pages 525-542, September.
    16. Peia, Oana & Roszbach, Kasper, 2015. "Finance and growth: Time series evidence on causality," Journal of Financial Stability, Elsevier, vol. 19(C), pages 105-118.
    17. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, March.
    18. Delgado Narro, Augusto Ricardo, 2020. "Spatial Analysis of Poverty: The case of Peru," MPRA Paper 100615, University Library of Munich, Germany.
    19. Renato Quiliche & Rafael Rentería-Ramos & Irineu de Brito Junior & Ana Luna & Mario Chong, 2021. "Using Spatial Patterns of COVID-19 to Build a Framework for Economic Reactivation," Sustainability, MDPI, vol. 13(18), pages 1-23, September.
    20. Andreas A. Andrikopoulos & Dimitrios C. Gkountanis, 2011. "Issues and Models in Applied Econometrics: A partial survey," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(2), pages 107-165.
    21. Nouman Afzal & Stavros Afionis & Lindsay C. Stringer & Nicola Favretto & Marco Sakai & Paola Sakai, 2021. "Benefits and Trade-Offs of Smallholder Sweet Potato Cultivation as a Pathway toward Achieving the Sustainable Development Goals," Sustainability, MDPI, vol. 13(2), pages 1-17, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:705-726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.