An Assessment of Income Shocks and Expected Poverty Dynamics in Rural Nigeria
Assessment of income shocks and households’ vulnerability provides an excellent way of designing appropriate marginal reforms to tackle welfare problems among the vulnerable groups. This study used the three-stage Feasible Generalized Least Square (FGLS) technique to analyze expected poverty in Nigeria, using the 2004 National Living Standard Survey data. It was found that high agricultural input price and lack of capital to expand own business were experienced by the largest proportion of the households. Also, high vulnerability was displayed by rural areas, states like Jigawa, Kebbi, Zamfara, Yobe, Kogi, Taraba, and Sokoto, male-headed households, large families, and households with large number of dependents. This study suggests that there is a need to determine the prices in order to reduce chronic and transient poverty. Appropriate marginal reforms targeted at vulnerable groups in rural areas and specific zones of the country also need to be designed.
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Volume (Year): VII (2010)
Issue (Month): 3 (July)
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