CORRELATES OF POVERTY STATUS AMONG RURAL HOUSEHOLDS IN OGUN STATE, NIGERIA: AN ASSET INDEX APPROACH
DOI:
https://doi.org/10.51406/jagse.v16i2.1680Keywords:
Poverty status, rural households, assets, asset index approach.Abstract
Examination of the characteristics and causes of poverty is an important input into the design of economic policy and poverty alleviation programmes. This study assessed the poverty status of rural households in Ogun State, using the Asset Index Approach due to shortcomings of the conventional methods in poverty analysis. Relevant data were collected from a total of 260 households using a four-stage sampling procedure. The data were analyzed using principal component and ordered probit regression analyses (OPRA). The results showed that the OPRA, which significantly (χ2 = 135.20, p < 0.01) explained the probability of a household escaping poverty, revealed that the primary occupation of household heads and the educational status of household heads and their wives among others factors significantly affect the likelihood of escaping poverty. The study therefore suggested that the economic situation of rural households can be considerably enhanced by promoting member’s access to qualitative education and also by encouraging household heads who take up farming activities as their primary occupation to participate in credit associations, indigenous savings and micro financing so as to boost their farming. Therefore, rural development policies should be tailored towards developing these facilities.
References
Ainsworth, M. and Filmer, D (2006). Children's Schooling: AIDS, Orphan hood, Poverty, and Gender. World Development 34(6):1099-1128.
Awe, A. and Ojo, R (2012). Determinants of Income Distribution in the Nigerian Economy: 1977 – 2005. Journal of International Business and Management, Vol 5 (1) : 126 – 137.
Baschieri, A and Craig, H (2004). Creating a Poverty Map for Azerbaijan , Programmatic Poverty Assessment 2004.
Bicego, G., Rutstein, S and Johnston K (2003). Dimensions of the Emerging Orphan Crisis in Sub-Saharan Africa. Social Science and Medicine 56(6):1235-1247.
Bogale, A (2011). Analysis of poverty and it’s covariates among small holder farmers in Eastern Hararghe islands of Ethiopia. Journal of Development and Agricultural Economics Vol. 3 (4), pp.157- 164.
Bollen, K., Glanville, J. and Stecklov, G(2002). Economic Status Proxies in Studies of Fertility in Developing Countries; Does the Measure Matter? Population Studies, Vol 56; 81-96.
Budria, S (2010) The Socio- Economic Determinants of Economic Inequality, Evidence from Portugal. Revista Internacional de Sociologia (RIS) Vol 68 (1): pp 110-112.
Case, A., Paxson, C and Ableidinger, J (2004). “Orphans in Africa: ParentalDeath, Poverty, and School Enrollment.” Deography 41(3): 483-508.
Earth Trends (2003). Economic Indicators – Nigeria.
Edoumiekumo, S., Karimo, M. and Tombofa, S (2014) ‘Income Poverty in Nigeria: Incidence, Gap, severity and Correlates . American Journal of Humanities and Social Sciences ,Vol 2 (1): 1- 9.
Evans, D. and Miguel, T (2004). Orphans and Schooling in Africa: A Longitudinal Analysis. Unpublished manuscript, Harvard University and University of California,Berkeley
Fay, M., Daniel L., Quentin W. and Tito Y (2005).Achieving Child- Health-Related Millennium Development Goals: The Role of Infrastructure. WorldDevelopment 33(8):1267-1284.
Federal Office of Statistics (FOS), (1999) : Poverty Profile for Nigeria 1980-1996, FOS Lagos.
Filmer,.D. and Pritchett, L.Z. (1998). Estimating Wealth Effects without Income or Expenditure Data- or Tears; Educational Enrolment in India’, World Bank Policy Research Working Paper, No 1994, Washington DC; World Bank ( also published in Demography (2001) Vol. 38, No 1).
Filmer, D, and Pritchett L (1999). The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries. Population and Development Review 25 (1) : 85 – 120.
Filmer, D and Pritchett, L (2001) Estimating Wealth effects without expenditure data or tears; an application to educational enrolments in India. Demography Vol. 38 (1).
Filmer, D (2005). Fever and Its Treatment Among the More and Less Poor in Sub-Saharan Africa. Health Policy and Planning 20(6):337-346.
Filmer, D (2008). Disability, Poverty and Schooling in Developing Countries: Results from 14 Household Surveys. World Bank Economic Review.
Fitch Report, (2016). Evaluation Report on Economic Performance of some countries in Africa, Asia and the Middle East by Fitch International rating agency. Downloaded from www.thisdaylive.com/.
Ghuman, S, Behrman, J,B. Borja, Socorro Gultiano, and Elizabeth M. King (2005). Family Background, Service Providers, and Early Childhood Development in the Philippines: Proxies and Interactions.” Economic Development and Cultural Change 54(1):129-164.
Greene, W.H ( 2002) . Econometric Analysis. 5th edition. Engelwood Cliffs, NJ: Prentice Hall.
Gwatkin, D. R., Shea R., Johnson, K. ,Pande, R and Adam Wagstaff, (2000). Socio-Economic Differences in Health, Nutrition, and Population.” HNP/PovertyThematic Group, The World Bank, Washington, DC.
Handelman, H. 2016. Challenges of the Developing World. Eight Edition, Published by Rowman and Littlefield Publishing group, Inc boulevard, Suite 200, Lanham, Maryland, USA.
Houweling, T.A.J, Kunst, A.E, Machenbach J.P.(2003). Measuring Health Inequality Among Children in Developing Countries; Does the Choice of the Indicator of Economic Status matter? International Journal for Equity in Health 2: 8.
Kpakol, M (2005). Major Challenges Facing Africa: Guardian Newspapers, April 4 pp. A2, A6.
Luciano, C.(2006). The Many Dimensions of Poverty in Albania : Income, Wealth and Perceptions. MPRA Paper No. 922. 9munich Personal RePEc Archive). http : // mpra.ub.uni-muenchen.de/922.
National Bureau of Statistics (2012). Downloaded from www.businessdayonline.com . Percentage of the Nigerian Population Living in absolute poverty.
National Bureau of Statistics (2016). Downloaded from www.vanguardnewsonline.com . Poverty: 112 m Nigerian live below poverty line.
Njau, J. D., Goodman, C., Kachur, S. P., Palmer, N.,R., Khatib, R.A., Abdulla, S., Mills, A. and P. Bloland. (2006). Fever Treatment and Household Wealth: The Challenge Posed for Rolling Out Combination Therapy for Malaria.” Tropical Medicine & InternationalHealth 11(3):299-313.
Ogwumike, F.O. (2002). Concept, Measurement and Nature of Poverty in Nigeria. Paper presented at the National PRSP Empowerment Workshop, Kaduna.
Olaniyan, O. (2000). Household Endowments and Poverty in Nigeria. A Paper presented at Centre for the Study of African Economy Conference on Opportunities in Africa. University of Oxford,U.K.
Olowa, W (2012). Concept, Measurement and Causes of Poverty: Nigeria in Perspective. American Journal of Economics Vol 2 (1) : 25- 36.
Oshelowo,S. (2010). Galloping Poverty in Nigeria; An Appraisal of the Government’s Interventionist Policies. Journal of Sustainable Development in Africa (volume 12 , No. 6, 2010)
Phusit, P (2003). An Application of Asset Index for Measuring Household Living Standards in Thailand. International Health Policy Program Thailand.
Povoroznyk, B (2006). Infrastructural Povery Conception and Welfare Estimation in Ukraine. A thesis submitted in partial fulfillment of the requirement for the degree of Masters of Arts in Economics. National University Kyiv- Mohyla Academy, Economics Education and Research Consortium, Ukraine.
Sahn, D. and Stifel D. (2000). Poverty Comparisons Over Time and Across Countries in Africa , World Development, Vol 28, No. 12 ; 2123- 55.
Sahn, D and Stifel, D. (2001). Exploring Alternative Measures of Welfare in the Absence of Expenditure Data. mimeo paper, Cornell University.
Sahn, D.and Stifel, D.C.(2003). Exploring Alternative Measures of Wealth in the Absence of Expenditure Data. The Review of Income and Wealth, 49 (4): 463-89
Sastry, N (2004).Trends in Socioeconomic Inequalities in Mortality in Developing Countries: The case of Child Survival in Sao Paulo, Brazil. Demography 41(3): 443-464..
Seema, V. and Lilani, K (2006). Constructing Socio – economic Status Indices; How to Use Principal Component Analysis. Published by Oxford University Press in Association with the London School of Hygiene and Tropical Medicine. Advance Access Publication 9.
Schellenberg, J. A., Cesar G. V., Adiel , M., Don de Savigny, David Schellenberg, Hassan M., and Bryce.J. (2003). Inequities Among the Very Poor: Health Care for Children in Rural Southern Tanzania.” The Lancet 361(9357): 561- 566.
Spryskov,D.S,( 2003). Below the Poverty Line. Duration of poverty in Russia. Working paper No 03/04, Supported by the Economics Education and Research Consortium, Moscow; pp 1 – 79.
Tarozzi, A. and Mahajan A. (2005). Child Nutrition in India in the Nineties: A Story of Increased Gender Inequality? Unpublished manuscript. Duke University and Stanford University. http://www.rand.org/labor/pdfs/2006_tarozzi.pdf
United Nations Development Programme (UNDP), (2005). Human Development Report 2005. International Cooperation at Cross Roads : Aid, trade and Security in an Unequal world. New York : Oxford University Press for the United Nations Development Programme (UNDP).
United Nations Development Programme(UNDP) , (2016). Human Development Report 2016. UNDP ranks Nigeria 152nd in 2016 Human Development Index. Downloaded from https://dailytimes.ng/news/undp-ranks-nigera-152nd-2016-human-development-index /
World Bank, (1996). Nigeria: Poverty in the Mist of Plenty: the Challenge of Growth with Inclusion. A World Bank poverty Assessment .Population and Human Resources division report 14733. Washington DC.
World Bank, (1997). Taking Action to Reduce Poverty in Sub Saharan Africa.(Development in Practice). A Poverty Report by World Bank. ISBN 10: 0821336983/ ISBN 13: 9780821336984. Washington DC
Awe, A. and Ojo, R (2012). Determinants of Income Distribution in the Nigerian Economy: 1977 – 2005. Journal of International Business and Management, Vol 5 (1) : 126 – 137.
Baschieri, A and Craig, H (2004). Creating a Poverty Map for Azerbaijan , Programmatic Poverty Assessment 2004.
Bicego, G., Rutstein, S and Johnston K (2003). Dimensions of the Emerging Orphan Crisis in Sub-Saharan Africa. Social Science and Medicine 56(6):1235-1247.
Bogale, A (2011). Analysis of poverty and it’s covariates among small holder farmers in Eastern Hararghe islands of Ethiopia. Journal of Development and Agricultural Economics Vol. 3 (4), pp.157- 164.
Bollen, K., Glanville, J. and Stecklov, G(2002). Economic Status Proxies in Studies of Fertility in Developing Countries; Does the Measure Matter? Population Studies, Vol 56; 81-96.
Budria, S (2010) The Socio- Economic Determinants of Economic Inequality, Evidence from Portugal. Revista Internacional de Sociologia (RIS) Vol 68 (1): pp 110-112.
Case, A., Paxson, C and Ableidinger, J (2004). “Orphans in Africa: ParentalDeath, Poverty, and School Enrollment.” Deography 41(3): 483-508.
Earth Trends (2003). Economic Indicators – Nigeria.
Edoumiekumo, S., Karimo, M. and Tombofa, S (2014) ‘Income Poverty in Nigeria: Incidence, Gap, severity and Correlates . American Journal of Humanities and Social Sciences ,Vol 2 (1): 1- 9.
Evans, D. and Miguel, T (2004). Orphans and Schooling in Africa: A Longitudinal Analysis. Unpublished manuscript, Harvard University and University of California,Berkeley
Fay, M., Daniel L., Quentin W. and Tito Y (2005).Achieving Child- Health-Related Millennium Development Goals: The Role of Infrastructure. WorldDevelopment 33(8):1267-1284.
Federal Office of Statistics (FOS), (1999) : Poverty Profile for Nigeria 1980-1996, FOS Lagos.
Filmer,.D. and Pritchett, L.Z. (1998). Estimating Wealth Effects without Income or Expenditure Data- or Tears; Educational Enrolment in India’, World Bank Policy Research Working Paper, No 1994, Washington DC; World Bank ( also published in Demography (2001) Vol. 38, No 1).
Filmer, D, and Pritchett L (1999). The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries. Population and Development Review 25 (1) : 85 – 120.
Filmer, D and Pritchett, L (2001) Estimating Wealth effects without expenditure data or tears; an application to educational enrolments in India. Demography Vol. 38 (1).
Filmer, D (2005). Fever and Its Treatment Among the More and Less Poor in Sub-Saharan Africa. Health Policy and Planning 20(6):337-346.
Filmer, D (2008). Disability, Poverty and Schooling in Developing Countries: Results from 14 Household Surveys. World Bank Economic Review.
Fitch Report, (2016). Evaluation Report on Economic Performance of some countries in Africa, Asia and the Middle East by Fitch International rating agency. Downloaded from www.thisdaylive.com/.
Ghuman, S, Behrman, J,B. Borja, Socorro Gultiano, and Elizabeth M. King (2005). Family Background, Service Providers, and Early Childhood Development in the Philippines: Proxies and Interactions.” Economic Development and Cultural Change 54(1):129-164.
Greene, W.H ( 2002) . Econometric Analysis. 5th edition. Engelwood Cliffs, NJ: Prentice Hall.
Gwatkin, D. R., Shea R., Johnson, K. ,Pande, R and Adam Wagstaff, (2000). Socio-Economic Differences in Health, Nutrition, and Population.” HNP/PovertyThematic Group, The World Bank, Washington, DC.
Handelman, H. 2016. Challenges of the Developing World. Eight Edition, Published by Rowman and Littlefield Publishing group, Inc boulevard, Suite 200, Lanham, Maryland, USA.
Houweling, T.A.J, Kunst, A.E, Machenbach J.P.(2003). Measuring Health Inequality Among Children in Developing Countries; Does the Choice of the Indicator of Economic Status matter? International Journal for Equity in Health 2: 8.
Kpakol, M (2005). Major Challenges Facing Africa: Guardian Newspapers, April 4 pp. A2, A6.
Luciano, C.(2006). The Many Dimensions of Poverty in Albania : Income, Wealth and Perceptions. MPRA Paper No. 922. 9munich Personal RePEc Archive). http : // mpra.ub.uni-muenchen.de/922.
National Bureau of Statistics (2012). Downloaded from www.businessdayonline.com . Percentage of the Nigerian Population Living in absolute poverty.
National Bureau of Statistics (2016). Downloaded from www.vanguardnewsonline.com . Poverty: 112 m Nigerian live below poverty line.
Njau, J. D., Goodman, C., Kachur, S. P., Palmer, N.,R., Khatib, R.A., Abdulla, S., Mills, A. and P. Bloland. (2006). Fever Treatment and Household Wealth: The Challenge Posed for Rolling Out Combination Therapy for Malaria.” Tropical Medicine & InternationalHealth 11(3):299-313.
Ogwumike, F.O. (2002). Concept, Measurement and Nature of Poverty in Nigeria. Paper presented at the National PRSP Empowerment Workshop, Kaduna.
Olaniyan, O. (2000). Household Endowments and Poverty in Nigeria. A Paper presented at Centre for the Study of African Economy Conference on Opportunities in Africa. University of Oxford,U.K.
Olowa, W (2012). Concept, Measurement and Causes of Poverty: Nigeria in Perspective. American Journal of Economics Vol 2 (1) : 25- 36.
Oshelowo,S. (2010). Galloping Poverty in Nigeria; An Appraisal of the Government’s Interventionist Policies. Journal of Sustainable Development in Africa (volume 12 , No. 6, 2010)
Phusit, P (2003). An Application of Asset Index for Measuring Household Living Standards in Thailand. International Health Policy Program Thailand.
Povoroznyk, B (2006). Infrastructural Povery Conception and Welfare Estimation in Ukraine. A thesis submitted in partial fulfillment of the requirement for the degree of Masters of Arts in Economics. National University Kyiv- Mohyla Academy, Economics Education and Research Consortium, Ukraine.
Sahn, D. and Stifel D. (2000). Poverty Comparisons Over Time and Across Countries in Africa , World Development, Vol 28, No. 12 ; 2123- 55.
Sahn, D and Stifel, D. (2001). Exploring Alternative Measures of Welfare in the Absence of Expenditure Data. mimeo paper, Cornell University.
Sahn, D.and Stifel, D.C.(2003). Exploring Alternative Measures of Wealth in the Absence of Expenditure Data. The Review of Income and Wealth, 49 (4): 463-89
Sastry, N (2004).Trends in Socioeconomic Inequalities in Mortality in Developing Countries: The case of Child Survival in Sao Paulo, Brazil. Demography 41(3): 443-464..
Seema, V. and Lilani, K (2006). Constructing Socio – economic Status Indices; How to Use Principal Component Analysis. Published by Oxford University Press in Association with the London School of Hygiene and Tropical Medicine. Advance Access Publication 9.
Schellenberg, J. A., Cesar G. V., Adiel , M., Don de Savigny, David Schellenberg, Hassan M., and Bryce.J. (2003). Inequities Among the Very Poor: Health Care for Children in Rural Southern Tanzania.” The Lancet 361(9357): 561- 566.
Spryskov,D.S,( 2003). Below the Poverty Line. Duration of poverty in Russia. Working paper No 03/04, Supported by the Economics Education and Research Consortium, Moscow; pp 1 – 79.
Tarozzi, A. and Mahajan A. (2005). Child Nutrition in India in the Nineties: A Story of Increased Gender Inequality? Unpublished manuscript. Duke University and Stanford University. http://www.rand.org/labor/pdfs/2006_tarozzi.pdf
United Nations Development Programme (UNDP), (2005). Human Development Report 2005. International Cooperation at Cross Roads : Aid, trade and Security in an Unequal world. New York : Oxford University Press for the United Nations Development Programme (UNDP).
United Nations Development Programme(UNDP) , (2016). Human Development Report 2016. UNDP ranks Nigeria 152nd in 2016 Human Development Index. Downloaded from https://dailytimes.ng/news/undp-ranks-nigera-152nd-2016-human-development-index /
World Bank, (1996). Nigeria: Poverty in the Mist of Plenty: the Challenge of Growth with Inclusion. A World Bank poverty Assessment .Population and Human Resources division report 14733. Washington DC.
World Bank, (1997). Taking Action to Reduce Poverty in Sub Saharan Africa.(Development in Practice). A Poverty Report by World Bank. ISBN 10: 0821336983/ ISBN 13: 9780821336984. Washington DC
