Econometrics analysis of rural livelihoods and income inequality among yam (Discorea alata) farming households’ in Abuja, Nigeria

Abstract

This study analyzed econometrics of rural livelihoods and income inequality among yam (Discorea alata) farming households’ in Abuja, Nigeria. Multi-stage sampling was adopted and employed. Primary data were collected through well-structured and well-designed questionnaire. Total sample sizes of 100 rural yam producers were selected. Data were coded, and analyzed using the following statistical and econometrics tools: descriptive statistics, gross margin analysis, financial analysis, Gini-coefficients, Multinomial Logit model, Probit model, Simpson index of income diversification, principal component analysis, and t –test analysis. The result shows that 73% of rural yam farmers were less than 51 years of age. The mean age was 45.8 years. The livelihood activities were farming, non-farming and off-farming activities. The Gini-coefficient of 0.7413 revealed severe income gap or high inequality in income among rural yam farmers. Factors influencing livelihood income diversification among rural yam farmers were gender(P<0.01), age (P<0.05), marital status (P<0.10), household size (P<0.10), level of education (P<0.01), membership of cooperatives(P<0.05), access to credit (P<0.10), contact with extension agents (P<0.05), income generating farm assets (P<0.05), and farm income (P<0.05). Principal component analysis used in analyzing constraints or problems facing rural yam producers show that six (6) constraints were retained for having Eigen-value greater than one. The retained constraints were lack of credit facilities, inadequate extension agents, poor storage facilities, bad feeder roads, lack of farm inputs, and lack of market centers. The retained constraints explained 84.79% of components included in the model. The study recommends that credit facilities and farm inputs should be made available to rural yam farmers. Also, extension agents should be employed and appropriate storage facilities should be made available for rural yam farmers.

Keywords

• Rural Livelihood, Income Inequality,
• Yam Farmers, Multinomial Logit Model,
• Probit Model, Nigeria.

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