Agricultural commercialisation, poverty reduction and pro-poor growth: evidence from commercial agricultural development project in Nigeria

Autor: E.A. Etuk, Josephine Oluwatoyin Ayuk
Rok vydání: 2021
Předmět:
Zdroj: Heliyon, Vol 7, Iss 5, Pp e06818-(2021)
Heliyon
ISSN: 2405-8440
DOI: 10.1016/j.heliyon.2021.e06818
Popis: Commercial Agriculture Development is widely seen as a pathway to agriculture commercialization, poverty reduction and pro-poor growth in developing economies. Using a counterfactual approach, this study assessed the impact of the Commercial Agricultural Development Project (CADP) in Nigeria on poverty status of beneficiaries and non-beneficiaries; determine its impact on commercialization of beneficiaries and non-beneficiaries and ascertain the pro-poor impact of the Project. Data from 1199 households comprising 678 beneficiaries and 521 non-beneficiaries were used for analysis. Propensity score matching was used to select comparable observations which reduced the sample size to 1142 observations: 655 beneficiaries, 487 non-beneficiaries. Data were analyzed using descriptive statistics, propensity score matching technique, Foster-Greer-Thorbecke (FGT) poverty measures, Average Treatment effect on the Treated (ATT) and Poverty equivalent growth rate (PEGR) pro-poor measure. FGT poverty indices were lower for CADP Beneficiaries than the non-beneficiaries. The impact of the CADP on poverty using the income of beneficiaries as proxy showed that those who participated in CADP had their income increased by N446,073.89 ($ 1,239.09) and were better off in terms of their welfare compared to those who did not participate in the program. For the impact on commercialization, the programme led to a statistically significant increase in the commercialization index of beneficiaries. Also the PEGR for non-beneficiaries was higher than the actual growth rate while that of beneficiaries was less than the actual growth rate implying that CADP was not pro-poor. The study concludes that even though the CADP impacted the poverty level of beneficiaries positively, it was not pro-poor hence there is a need to ensure that the poor are effectively targeted in designing development intervention programmes.
Commercial agriculture development project (CADP), Propensity score matching, FGT poverty indices, Commercialization index, Poverty equivalent growth rate.
Databáze: OpenAIRE