Empirical studies across many developing countries document that improving agricultural productivity is the main pathway out of poverty. In this paper, we begin by investigating the factors that hinder or accelerate agricultural productivity. Additionally, we seek to understand whether agricultural productivity, measured using land productivity, improves household consumption growth using nationally representative Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) panel datasets from Nigeria, merged with detailed novel climate and bio-physical information. The results show that agricultural productivity is positively associated with labor and farm inputs. Consistent with the inverse land size-productivity relationship so often observed in the literature, land productivity decreases with increasing farm size. We also find that climate risk and bio-physical variables play a significant role in explaining agricultural productivity. Moreover, agricultural productivity has a significant and positive impact on household consumption growth. The results also indicate that agricultural productivity has a positive impact on welfare growth for both poor and non-poor households, however, it has a smaller impact on consumption growth for poor households. Similarly, it has a positive and significant impact for all households in different initial land quintiles, but it has higher impact for top two households.
Project leader: Mulubrhan Amare
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|Linkages between Agricultural Productivity and Household Consumption: Empirical Evidence and Lessons from Nigeria||2018-02-15||1.87MB||0||0|
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