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The impacts of the food, fuel and financial crises on households in Nigeria. A retrospective approach for research enquiry

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  • Niño-Zarazúa, Miguel
  • Chiripanhura, Blessing

Abstract

This paper examines the impacts of the financial, food and fuel crises on the livelihoods of low-income households Nigeria. It uses primary household level data from Nigeria to analyse the impacts of induced price variability on household welfare. Our results indicate that aggregate shocks have significant adverse effects on household consumption, human capital, and labour decisions with a degree of impact variability between northern and southern regions of the country. We find that the coping strategies adopted by the poor to deal with the short-term effects of the crises, and which include substitution for lower quality food, increasing the intensity of work, withdrawing children from school – especially girls – and engaging children in child labour, can lock households in a low-income equilibrium or poverty trap. Provided that covariate shocks exacerbate these effects, tackling the effects of covariate risks becomes central for present and future development policy.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47348.

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Date of creation: 29 May 2013
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Handle: RePEc:pra:mprapa:47348

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Keywords: food; fuel; financial crisis; poverty; vulnerability; sub-Saharan Africa; Nigeria;

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  1. John Gibson & Bonggeun Kim, 2010. "Non-Classical Measurement Error in Long-Term Retrospective Recall Surveys," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(5), pages 687-695, October.
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  3. NAKATA Hiroyuki & SAWADA Yasuyuki & TANAKA Mari, 2010. "Asking Retrospective Questions in Household Surveys: Evidence from Vietnam," Discussion papers 10008, Research Institute of Economy, Trade and Industry (RIETI).
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  6. James Crotty, 2008. "Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’," UMASS Amherst Economics Working Papers 2008-14, University of Massachusetts Amherst, Department of Economics.
  7. Olomola, Aderibigbe S., 2013. "The political economy of food price policy in Nigeria," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Chen, Sheng-Tung & Kuo, Hsiao-I & Chen, Chi-Chung, 2010. "Modeling the relationship between the oil price and global food prices," Applied Energy, Elsevier, vol. 87(8), pages 2517-2525, August.
  9. Gibson, John, 2002. " Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 341-59, September.
  10. Frederic S. Mishkin, 2000. "Lessons from the Asian Crisis," NBER Working Papers 7102, National Bureau of Economic Research, Inc.
  11. Benjamin Senauer, 2008. "Food Market Effects of a Global Resource Shift Toward Bioenergy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1226-1232.
  12. Barnard, Jerald R., 1983. "Gasohol/Ethanol: A Review of National and Regional Policy and Feasibility Issues," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 13(2).
  13. Baffes, John, 2007. "Oil spills on other commodities," Policy Research Working Paper Series 4333, The World Bank.
  14. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386.
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