Response to Economic Incentive by Abakaliki Rice Farmers in Eastern Nigeria

Delane E. Welsch

American Journal of Agricultural Economics, 1965, vol. 47, issue 4, 900-914

Abstract: The study reported in this article dealt with the introduction and subsequent expansion of a new crop, rice, into the Abakaliki area of Eastern Nigeria, where yams had for centuries been the chief crop, and with the economic response of the small farmers in the area. The results of the study are consistent with the hypothesis that these farmers respond to economic incentives by allocating very efficiently the factors of production at their disposal, and with the hypothesis that their investment decisions tend to maximize returns to scarce resources. The economics of rotation explains the rapid adoption and expansion of rice production. It appears, however, that the initial development impact of rice is exhausted, and only the introduction of a bundle of new, profitable factors of production will give further impetus to development.

Date: 1965
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