Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda

This paper uses multiple rounds of panel data to assess the distributional implications of the variability in agricultural productivity in Nigeria and Uganda. It uses both a conventional decomposition and a regression‐based inequality decomposition approach to estimate the impact of climate‐induced...

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Main Authors: Amare, Mulubrhan, Shiferaw, Bekele, Takeshima, Hiroyuki, Mavrotas, George
Format: Journal Article
Language:Inglés
Published: Wiley 2021
Subjects:
Online Access:https://hdl.handle.net/10568/142282
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author Amare, Mulubrhan
Shiferaw, Bekele
Takeshima, Hiroyuki
Mavrotas, George
author_browse Amare, Mulubrhan
Mavrotas, George
Shiferaw, Bekele
Takeshima, Hiroyuki
author_facet Amare, Mulubrhan
Shiferaw, Bekele
Takeshima, Hiroyuki
Mavrotas, George
author_sort Amare, Mulubrhan
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper uses multiple rounds of panel data to assess the distributional implications of the variability in agricultural productivity in Nigeria and Uganda. It uses both a conventional decomposition and a regression‐based inequality decomposition approach to estimate the impact of climate‐induced variability in agricultural productivity. To mitigate the endogeneity associated with unobserved time‐invariant and time‐variant household fixed effects, we use rainfall shocks as a proxy for estimating the exogenous variability in agricultural productivity that affects consumption. Results suggest that a 10% increase in the variability of agricultural productivity tends to decrease household consumption by 38 and 52% on average for Nigeria and Uganda, respectively. Controlling for other factors, variability in agricultural productivity contributed to between 25% and 43% of consumption inequality between 2010 and 2015 for Nigeria; and 16% and 31% of consumption inequality between 2009 and 2011 for Uganda. We also show that variability in agricultural productivity increases changes in consumption inequality over time.
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spelling CGSpace1422822025-12-08T09:54:28Z Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda Amare, Mulubrhan Shiferaw, Bekele Takeshima, Hiroyuki Mavrotas, George shock consumption climate change agricultural productivity household consumption rural areas equality This paper uses multiple rounds of panel data to assess the distributional implications of the variability in agricultural productivity in Nigeria and Uganda. It uses both a conventional decomposition and a regression‐based inequality decomposition approach to estimate the impact of climate‐induced variability in agricultural productivity. To mitigate the endogeneity associated with unobserved time‐invariant and time‐variant household fixed effects, we use rainfall shocks as a proxy for estimating the exogenous variability in agricultural productivity that affects consumption. Results suggest that a 10% increase in the variability of agricultural productivity tends to decrease household consumption by 38 and 52% on average for Nigeria and Uganda, respectively. Controlling for other factors, variability in agricultural productivity contributed to between 25% and 43% of consumption inequality between 2010 and 2015 for Nigeria; and 16% and 31% of consumption inequality between 2009 and 2011 for Uganda. We also show that variability in agricultural productivity increases changes in consumption inequality over time. 2021-01 2024-05-22T12:10:16Z 2024-05-22T12:10:16Z Journal Article https://hdl.handle.net/10568/142282 en https://doi.org/10.2499/p15738coll2.134237 https://doi.org/10.2499/p15738coll2.134843 Open Access Wiley Amare, Mulubrhan; Shiferaw Bekele; Takeshima, Hiroyuki; and Mavrotas, George. 2021. Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda. Agricultural Economics 52(1): 19-36. https://doi.org/10.1111/agec.12604
spellingShingle shock
consumption
climate change
agricultural productivity
household consumption
rural areas
equality
Amare, Mulubrhan
Shiferaw, Bekele
Takeshima, Hiroyuki
Mavrotas, George
Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title_full Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title_fullStr Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title_full_unstemmed Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title_short Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda
title_sort variability in agricultural productivity and rural household consumption inequality evidence from nigeria and uganda
topic shock
consumption
climate change
agricultural productivity
household consumption
rural areas
equality
url https://hdl.handle.net/10568/142282
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AT takeshimahiroyuki variabilityinagriculturalproductivityandruralhouseholdconsumptioninequalityevidencefromnigeriaanduganda
AT mavrotasgeorge variabilityinagriculturalproductivityandruralhouseholdconsumptioninequalityevidencefromnigeriaanduganda