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Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria

This paper examines the determinants of non-farm enterprise (NFE) diversification decision among farm households in rural Nigeria and its effects on their economic wellbeing. By employing probit model, we find that NFE diversification decision significantly depends on household head’s education, hou...

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Main Authors: Abdul Aziz, Sheehu, Ahmad Sidique, Shaufique Fahmi, Said, Rusmawati
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/56375/1/%2810%29-Paper%2010%20Final-IJEM%2011%281%29%2C2017_Determinants%20and%20Effects....pdf
http://psasir.upm.edu.my/id/eprint/56375/
http://172.17.31.1/ijem/vol11no1/(10)-Paper%2010%20Final-IJEM%2011(1),2017_Determinants%20and%20Effects....pdf
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spelling my.upm.eprints.563752017-07-31T09:11:44Z http://psasir.upm.edu.my/id/eprint/56375/ Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria Abdul Aziz, Sheehu Ahmad Sidique, Shaufique Fahmi Said, Rusmawati This paper examines the determinants of non-farm enterprise (NFE) diversification decision among farm households in rural Nigeria and its effects on their economic wellbeing. By employing probit model, we find that NFE diversification decision significantly depends on household head’s education, household size, and community level infrastructures. The model also indicates that households residing closer to markets are more likely to diversify into NFE activities than those in remote areas. Unique to this study, we find that households having access to social and financial capital can overcome the entry barriers associated with NFE diversification. Propensity score matching technique was used to assess the impact of NFE diversification on household economic wellbeing, using annual total consumption expenditure and food shortage status of the household as indicators of economic wellbeing. The result reveals that NFE diversification has a significant positive impact on consumption expenditure and food availability. This suggests that NFE diversification could be a pathway for improving the economic wellbeing of farm households in rural areas of developing countries. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56375/1/%2810%29-Paper%2010%20Final-IJEM%2011%281%29%2C2017_Determinants%20and%20Effects....pdf Abdul Aziz, Sheehu and Ahmad Sidique, Shaufique Fahmi and Said, Rusmawati (2017) Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria. International Journal of Economics and Management, 11 (1). pp. 187-204. ISSN 1823-836X http://172.17.31.1/ijem/vol11no1/(10)-Paper%2010%20Final-IJEM%2011(1),2017_Determinants%20and%20Effects....pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper examines the determinants of non-farm enterprise (NFE) diversification decision among farm households in rural Nigeria and its effects on their economic wellbeing. By employing probit model, we find that NFE diversification decision significantly depends on household head’s education, household size, and community level infrastructures. The model also indicates that households residing closer to markets are more likely to diversify into NFE activities than those in remote areas. Unique to this study, we find that households having access to social and financial capital can overcome the entry barriers associated with NFE diversification. Propensity score matching technique was used to assess the impact of NFE diversification on household economic wellbeing, using annual total consumption expenditure and food shortage status of the household as indicators of economic wellbeing. The result reveals that NFE diversification has a significant positive impact on consumption expenditure and food availability. This suggests that NFE diversification could be a pathway for improving the economic wellbeing of farm households in rural areas of developing countries.
format Article
author Abdul Aziz, Sheehu
Ahmad Sidique, Shaufique Fahmi
Said, Rusmawati
spellingShingle Abdul Aziz, Sheehu
Ahmad Sidique, Shaufique Fahmi
Said, Rusmawati
Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
author_facet Abdul Aziz, Sheehu
Ahmad Sidique, Shaufique Fahmi
Said, Rusmawati
author_sort Abdul Aziz, Sheehu
title Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
title_short Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
title_full Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
title_fullStr Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
title_full_unstemmed Determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural Nigeria
title_sort determinants and effects of non-farm enterprise diversification on household economic wellbeing in rural nigeria
publisher Faculty of Economics and Management, Universiti Putra Malaysia
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/56375/1/%2810%29-Paper%2010%20Final-IJEM%2011%281%29%2C2017_Determinants%20and%20Effects....pdf
http://psasir.upm.edu.my/id/eprint/56375/
http://172.17.31.1/ijem/vol11no1/(10)-Paper%2010%20Final-IJEM%2011(1),2017_Determinants%20and%20Effects....pdf
_version_ 1643836172037783552
score 13.244369

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