Drivers of Households’ off-the-farm Income Diversification Patterns in Nigeria: Panel Evidence Using General Household Survey Data

Ndubuisi Obeka Chukwu and Jude Okechukwu Chukwu

Review of Development and Change, 2023, vol. 28, issue 1, 67-89

Abstract: This study examines the drivers of households’ off-the-farm income diversification patterns using four waves of the Nigeria General Household Survey panel data. The study further investigates the motives for households’ off-the-farm income diversification patterns. The Simpson Income Diversification index and count index were used to measure income diversification. The results of heteroscedastic fractional probit correlated random effects and Poisson fixed effects indicate that the level of diversifying off-the-farm income is driven by attributes of household such as assets value, household size, female headship, level of education, dependency ratio, access to credit, distance to tarred road and geographical location of household at the national level. The study found that the motive for accumulation drives households’ off-the-farm income diversification rather than the motive for survival. Specifically, non-poor households in the urban sector seem more probable to expand into off-the-farm income enterprises than poor rural households. A major finding is that the choice of off-the-farm income diversification proxy has a great influence on the drivers.

Keywords: Panel data models; household survey; off-the-farm activities; income diversification (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09722661231173122 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:revdev:v:28:y:2023:i:1:p:67-89

DOI: 10.1177/09722661231173122

Access Statistics for this article

More articles in Review of Development and Change
Bibliographic data for series maintained by SAGE Publications ().