IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v40y2009i2p189-201.html
   My bibliography  Save this article

Rural nonfarm activities and agricultural crop production in Nigeria

Author

Listed:
  • Gbemisola Oseni
  • Paul Winters

Abstract

Although most rural households are involved in the farm sector, the nonfarm sector has grown significantly in recent decades, and its role in rural development has become increasingly important. This article examines the effect of participation in nonfarm activities on crop expenses of farm households in Nigeria. The relationship is modeled using a nonseparable agricultural household model that suggests that participating in nonfarm activities can relax the credit constraints facing farm households and reduce risk thereby helping households improve farm production and smooth consumption over time. The results show that participation in nonfarm activities by Nigerian farmers has a positive and significant effect on crop expenses and in particular on payments for hired labor and inorganic fertilizers. Separate analysis of the six geopolitical zones in Nigeria indicates that it is in the South‐South and South‐East zones where nonfarm participation appears to induce more hiring of labor. The results support the hypothesis that nonfarm participation helps relax liquidity constraints but suggests how that liquidity is used is zone‐specific. In general, the results also indicate that liquidity is used more to pay for inputs into staple production as opposed to cash crops.

Suggested Citation

  • Gbemisola Oseni & Paul Winters, 2009. "Rural nonfarm activities and agricultural crop production in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 189-201, March.
  • Handle: RePEc:bla:agecon:v:40:y:2009:i:2:p:189-201
    DOI: 10.1111/j.1574-0862.2009.00369.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2009.00369.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1574-0862.2009.00369.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frank Ellis & H Ade Freeman, 2004. "Rural Livelihoods and Poverty Reduction Strategies in Four African Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 1-30.
    2. Michael R. Carter & Keith D. Wiebe, 1990. "Access to Capital and Its Impact on Agrarian Structure and Productivity in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1146-1150.
    3. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
    4. Gershon Feder & Lawrence J. Lau & Justin Y. Lin & Xiaopeng Luo, 1990. "The Relationship between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1151-1157.
    5. Thomas Reardon & Eric Crawford & Valerie Kelly, 1994. "Links Between Nonfarm Income and Farm Investment in African Households: Adding the Capital Market Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1172-1176.
    6. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    7. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    8. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    9. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    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. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    2. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    3. Tanui, Joseph & Groeneveld, Rolf & Klomp, Jeroen & Mowo, Jeremiahs & Ierland, Ekko C. van, 2013. "Explaining investments in sustainable land management: The role of various income sources in the smallholder farming systems of western Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161275, African Association of Agricultural Economists (AAAE).
    4. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    5. Aradom Gebrekidan Abbay & Roel Rutten & Hossein Azadi & Frank Witlox, 2018. "How Social Status Contributes to Sustainable Livelihoods? An Empirical Analysis in Ethiopia," Sustainability, MDPI, vol. 11(1), pages 1-24, December.
    6. Robinson, Lance W. & Ericksen, Polly J. & Chesterman, Sabrina & Worden, Jeffrey S., 2015. "Sustainable intensification in drylands: What resilience and vulnerability can tell us," Agricultural Systems, Elsevier, vol. 135(C), pages 133-140.
    7. Ali, Daniel Ayalew & Deininger, Klaus & Duponchel, Marguerite, 2014. "Credit constraints, agricultural productivity, and rural nonfarm participation : evidence from Rwanda," Policy Research Working Paper Series 6769, The World Bank.
    8. Lay, Jann & Schüler, Dana, 2008. "Income Diversification and Poverty in a Growing Agricultural Economy: The Case of Ghana," Proceedings of the German Development Economics Conference, Zurich 2008 39, Verein für Socialpolitik, Research Committee Development Economics.
    9. Martin, Sarah M. & Lorenzen, Kai, 2016. "Livelihood Diversification in Rural Laos," World Development, Elsevier, vol. 83(C), pages 231-243.
    10. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    11. Adugna, Lemi, 2009. "Determinants of Income Diversification in Rural Ethiopia: evidence From Panel Data," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 18(1), pages 116-116, December.
    12. Schramski, Sam & Barnes, Grenville, 2016. "Agrarian Change and Adaptive Capacity in Rural South Africa," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 6(2), December.
    13. Sinne Borby Ørtenblad & Torben Birch-Thomsen & Lukelo Roden Msese, 2019. "Rural Transformation and Changing Rural–Urban Connections in a Dynamic Region in Tanzania: Perspectives on Processes of Inclusive Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(1), pages 118-138, January.
    14. Tuyen, Tran Quang, 2013. "Farmland and peri-urban livelihoods in Hanoi, Vietnam: evidence from household survey data," MPRA Paper 60847, University Library of Munich, Germany, revised 19 Dec 2014.
    15. Amurtiya, Michael & Lumbonyi, Celestine Andrew & Abdullahi, Aliyu & Olayiwola, Sikiru Adekunle & Yaduma, Zacharia Buba & Abdullahi, Abduljabbar, 2016. "Livelihood Diversification And Income: A Case Study Of Communities Resident Along The Kiri Dam, Adamawa State, Nigeria," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 42(4).
    16. Nielsen, Martin Reinhardt & Pouliot, Mariève & Kim Bakkegaard, Riyong, 2012. "Combining income and assets measures to include the transitory nature of poverty in assessments of forest dependence: Evidence from the Democratic Republic of Congo," Ecological Economics, Elsevier, vol. 78(C), pages 37-46.
    17. Rao, Nitya, 2017. "Assets, Agency and Legitimacy: Towards a Relational Understanding of Gender Equality Policy and Practice," World Development, Elsevier, vol. 95(C), pages 43-54.
    18. Babigumira, Ronnie & Angelsen, Arild & Buis, Maarten & Bauch, Simone & Sunderland, Terry & Wunder, Sven, 2014. "Forest Clearing in Rural Livelihoods: Household-Level Global-Comparative Evidence," World Development, Elsevier, vol. 64(S1), pages 67-79.
    19. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    20. Debelo Bedada Yadeta & Fetene Bogale Hunegnaw, 2022. "Effect of International Remittance on Economic Growth: Empirical Evidence from Ethiopia," Journal of International Migration and Integration, Springer, vol. 23(2), pages 383-402, June.

    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:bla:agecon:v:40:y:2009:i:2:p:189-201. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.