Working Paper

Heterogeneous Returns to Income Diversification : Evidence from Nigeria

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Bertoni, Eleonora
dc.contributor.author
Corral, Paul
dc.contributor.author
Molini, Vasco
dc.contributor.author
Oseni, Gbemisola
dc.date.accessioned
2016-12-06T22:15:38Z
dc.date.available
2016-12-06T22:15:38Z
dc.date.issued
2016-11
dc.date.lastModified
2017-12-14T05:18:28Z
dc.description.abstract
This paper investigates the impact of income diversification on farming households' welfare in Nigeria on two rounds of the Nigeria General Household Survey-Panel, namely the 2010/2011 and 2012/2013. The study finds that income diversification is the norm in Nigeria, with about 60 percent of farmers diversifying away from subsistence farming into non-farm activities and cash crops. In addition, using the panel of farmers interviewed before and after a severe drought that hit Northern Nigeria in particular in 2011, the study finds that diversification increased throughout Nigeria from 60 to 64 percent and in the North from 58 to 63 percent. The study postulates the existence of heterogeneous returns on diversification as a consequence of the drought, and estimates the returns through a non-parametric selection model using a local instrumental variable. The choice of this model is dictated by the necessity to account for both heterogeneous effects of diversification and selection bias related to households' decision to diversify. Overall, it is found that diversification positively affects consumption in Nigeria. However, who benefits the most is crucially determined by the initial conditions under which diversification is undertaken and the specific agro-climatic context in which households operate.
en
dc.identifier
http://documents.worldbank.org/curated/en/385071479755915911/Heterogeneous-returns-to-income-diversification-evidence-from-Nigeria
dc.identifier.uri
http://hdl.handle.net/10986/25696
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7894
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
income diversification
dc.subject
off-farm employment
dc.subject
heterogeneous returns
dc.subject
household surveys
dc.subject
non-farm activities
dc.subject
climate change
dc.subject
climate change impacts
dc.title
Heterogeneous Returns to Income Diversification
en
dc.title.subtitle
Evidence from Nigeria
en
dc.type
Working Paper
en
okr.date.disclosure
2016-11-21
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/385071479755915911/Heterogeneous-returns-to-income-diversification-evidence-from-Nigeria
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7894
okr.identifier.externaldocumentum
090224b08471fcfb_1_0
okr.identifier.internaldocumentum
26959045
okr.identifier.report
WPS7894
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/385071479755915911/pdf/WPS7894.pdf
en
okr.region.administrative
Africa
okr.region.country
Nigeria
okr.topic
Macroeconomics and Economic Growth :: Climate Change Economics
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic
Rural Development :: Agricultural Growth and Rural Development
okr.topic
Rural Development :: Rural Poverty Reduction Strategies
okr.topic
Agriculture :: Commodity Risk Management
okr.unit
Poverty and Equity Global Practice Group

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