The Impact of Agricultural Productivity on Welfare Growth of Farm Households in Nigeria: A Panel Data Analysis
Empirical studies across many developing countries document that improving agricultural productivity is the main pathway out of poverty. In this paper, we begin by investigating the factors that hinder or accelerate agricultural productivity. Additionally, we seek to understand whether agricultural productivity, measured using land productivity, improves household consumption growth using nationally representative Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) panel datasets from Nigeria, merged with detailed novel climate and bio-physical information. The results show that agricultural productivity is positively associated with labor and farm inputs. Consistent with the inverse land size-productivity relationship so often observed in the literature, land productivity decreases with increasing farm size. We also find that climate risk and bio-physical variables play a significant role in explaining agricultural productivity. Moreover, agricultural pro ductivity has a significant and positive impact on household consumption growth. The results also indicate that while agricultural productivity has a positive impact on welfare growth for non-poor households, it has a negative impact for poor households.
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| Format: | Document biblioteca |
| Language: | English |
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FAO ;
2016
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| Online Access: | https://openknowledge.fao.org/handle/20.500.14283/BP143E http://www.fao.org/3/a-bp143e.pdf |
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| Summary: | Empirical studies across many developing countries document that improving agricultural productivity is the main pathway out of poverty. In this paper, we begin by investigating the factors that hinder or accelerate agricultural productivity. Additionally, we seek to understand whether agricultural productivity, measured using land productivity, improves household consumption growth using nationally representative Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) panel datasets from Nigeria, merged with detailed novel climate and bio-physical information. The results show that agricultural productivity is positively associated with labor and farm inputs. Consistent with the inverse land size-productivity relationship so often observed in the literature, land productivity decreases with increasing farm size. We also find that climate risk and bio-physical variables play a significant role in explaining agricultural productivity. Moreover, agricultural pro ductivity has a significant and positive impact on household consumption growth. The results also indicate that while agricultural productivity has a positive impact on welfare growth for non-poor households, it has a negative impact for poor households. |
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