On-Farm and Off-farm Works: Complement or Substitute? Evidence from Rural Nigeria

Raphael O. Babatunde

No 160437, 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia from African Association of Agricultural Economists (AAAE)

Abstract: Farming as a primary source of income has failed to guarantee sufficient livelihood for most farming households in developing countries, and agricultural development policies have largely produced little improvement, especially in Sub-Saharan Africa. Diversification into off-farm activities has become the norm. While the poverty and inequality effects of off-farm income have been analyzed in different developing countries, much less empirical studies have been conducted on the impact of off-farm income on agricultural production and efficiency. Using survey data from rural Nigeria, this article examines the effect of off-farm income on farm output, expenditure on purchased inputs and technical efficiency among farm households. The results indicate that off-farm income has a positive and significant effect on farm output and demand for purchased inputs. Though the result does not establish that off-farm income improves technical efficiency, there is a slight efficiency gains in households with off-farm income. The findings of this study challenge the notion that participation in off-farm activities may lead to a decline in own-farm agricultural production, due to competition for family labour between farm and off-farm works. Rather, they tend to suggest that there are indeed elements of complementarities and positive spill-over effects between the farm and off-farm sectors of rural the economy. Removing credit market imperfections and upgrading rural infrastructure could enhance the development of both sectors simultaneously.

Keywords: Consumer/Household Economics; Farm Management; Financial Economics (search for similar items in EconPapers)
Pages: 25
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/160437/files/O ... 0or%20subsititue.pdf (application/pdf)

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:ags:aaae13:160437

DOI: 10.22004/ag.econ.160437

Access Statistics for this paper

More papers in 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia from African Association of Agricultural Economists (AAAE) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().