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Humboldt-Universität zu Berlin - Lebenswissenschaftliche Fakultät - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 3/11


Impact of Improved Rice Technology (NERICA varieties) on Income and Poverty among Rice Farming Households in Nigeria:
A Local Average Treatment Effect (LATE) Approach

Paul Martin Dontsop Nguezet
University of Ibadan and International Institute of Tropical Agriculture (IITA), Ibadan, Nigeria

Aliou Diagne
Africa Rice Center (AfricaRice) ex WARDA/ADRAO, Cotonou, Benin

Victor Olusegun Okoruwa
University of Ibadan, Nigeria

Vivian Ojehomon
National Cereals Research Institute, Bida, Nigeria


Abstract

This study examines the impact of the adoption of New Rice for Africa varieties (NERICAs) on income and poverty among Nigerian rice farming households. It used instrumental variables estimators to estimate the Local Average Treatment Effect (LATE) of adopting NERICA on income and poverty reduction, using the cross-sectional data of 481 farmers from the upland, lowland and irrigated rice ecologies The findings reveal a robust, positive and significant impact of NERICA variety adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. The empirical results suggest that adoption of NERICA varieties helped raise household per capita expenditure and income by averages of 49.1% and 46.0%, respectively, thereby reducing the probability of adoptive households falling below the poverty line. The study suggests that increased investment in NERICA dissemination, with complementary measures, is a reasonable policy instrument to raise incomes and reduce poverty among rice farming households.

Keywords: impact, NERICA varieties, income, poverty, local average treatment effect, Nigeria

JEL: C13, O33, Q12, Q16

Vol. 50 (2011), No. 3: 267-291