Determinants of Agricultural and Non-Agricultural Livelihood Strategies in Rural Communities: Evidence from Eastern Nigeria

Journal of Developing Areas, Vol. 40, No. 2, Spring 2007

22 Pages Posted: 15 Aug 2005

See all articles by A.B. C. Adi

A.B. C. Adi

Lagos Business School; University of Tsukuba

Abstract

Using primary survey data from two agro-ecologically distinct rural communities in eastern Nigeria, this paper examines the determinants of livelihood diversification away from agriculture as well as the manner in which different agro-ecological determinants affect such diversification. The probability of participating in non-agricultural activities was estimated in an endogeneity-controlled, two-step probit model employing data on household assets, demographics, human capital, as well as a proxy for differences in agro-ecology. Results show that not many households remain undiversified as they combine activities within farming, commerce, skilled non-farm and low skilled non-farm sectors. Both human capital and the agro-climactic variables were found to determine the nature of diversification. Against the backdrop of the recent de-agrarianisation thesis, the study found that despite high incidence of diversification, agriculture is not in any significant decline. Policies thus should be aimed at both agricultural and non-agricultural activities. Policies based on the assumption that agriculture is no longer relevant will hurt farming and retard development.

Keywords: Diversification, Livelihood strategies, subsistence agriculture, agro-ecology, south-eastern Nigeria

JEL Classification: O13, Q12

Suggested Citation

Adi, Bongo C., Determinants of Agricultural and Non-Agricultural Livelihood Strategies in Rural Communities: Evidence from Eastern Nigeria. Journal of Developing Areas, Vol. 40, No. 2, Spring 2007, Available at SSRN: https://ssrn.com/abstract=775285

Bongo C. Adi (Contact Author)

Lagos Business School ( email )

Pan-Atlantic University
KM 22, Lekki-Epe Expressway
Lagos, Lagos State
Nigeria

HOME PAGE: http://www.lbs.edu.ng

University of Tsukuba ( email )

Tsukuba University , Ibaraki Ken
Tsukuba, Ibaraki 305-8573, Ibaraki 3050006
Japan

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