Off-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach

α
Ogbanje, Elaigwu Christopher
Ogbanje, Elaigwu Christopher
σ
Ogbanje
Ogbanje
ρ
Elaigwu Christopher.
Elaigwu Christopher.
Ѡ
Chidebelu
Chidebelu
¥
Sonny A.N.D.
Sonny A.N.D.
§
Nweze
Nweze
χ
N.J.
N.J.
α The University of Agriculture, Peshawar The University of Agriculture, Peshawar

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Off-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach

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Abstract

The study evaluated the probability of investing offfarm income’s share of household income in farming among small-scale farmers in North-Central Nigeria. Multistage sampling technique was used to select 360 respondents. Primary data for the study were analysed using Heckman’s two-stage selection model. The lambda of the model was 1.38%, while the chisquare was significant. While education, household size and operating profit margin significantly (p < 0.05) increased the probability of off-farm work participation, education, total crop revenue, primary occupation, farm asset to household asset ratio, and asset turnover ratio significantly (p < 0.05) increased investible off-farm income's share. Thus, factors in the business environment, other than government policies, shape off-farm work and farm investment decisions. Therefore, policy thrust should focus on interest and tax rates reduction and ease of farm asset acquisition for small-scale farmers.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Ogbanje, Elaigwu Christopher. 2015. \u201cOff-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 15 (GJHSS Volume 15 Issue E3): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 149999
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v1.2

Issue date

May 15, 2015

Language
en
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The study evaluated the probability of investing offfarm income’s share of household income in farming among small-scale farmers in North-Central Nigeria. Multistage sampling technique was used to select 360 respondents. Primary data for the study were analysed using Heckman’s two-stage selection model. The lambda of the model was 1.38%, while the chisquare was significant. While education, household size and operating profit margin significantly (p < 0.05) increased the probability of off-farm work participation, education, total crop revenue, primary occupation, farm asset to household asset ratio, and asset turnover ratio significantly (p < 0.05) increased investible off-farm income's share. Thus, factors in the business environment, other than government policies, shape off-farm work and farm investment decisions. Therefore, policy thrust should focus on interest and tax rates reduction and ease of farm asset acquisition for small-scale farmers.

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Off-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach

Ogbanje
Ogbanje
Elaigwu Christopher.
Elaigwu Christopher.
Chidebelu
Chidebelu
Sonny A.N.D.
Sonny A.N.D.
Nweze
Nweze
N.J.
N.J.

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