Effect Of Social Capital On Rural Household Welfare In Southwestern Nigeria

ABSTRACT

Rural household welfare remains low in Nigeria, as the traditional capital (physical, natural, human and financial) has not fully led to its improvement. There is increasing shift of attention to social capital as an element that explains household welfare. The nexus between social capital and rural household welfare in southwestern Nigeria has not been fully examined. The effect of social capital on rural household welfare in southwestern Nigeria was therefore investigated.

Multistage sampling technique was used. Oyo and Ekiti states were selected from the six states in southwestern Nigeria based on their poverty profile (the least poor and the poorest). Six rural Local Government Areas and thirty-two communities were selected from the two states based on probability proportionate to size and sample size of 298 was used for the analysis. Data were collected on household demographic characteristics such as age, education and household size, expenditure profile and social capital dimensions: Membership Density (MD), Decision Making (DM), Meeting Attendance (MA), heterogeneity, Cash Contribution (CC) and Labour Contribution (LC). Data were analysed using descriptive statistics, ordered probit, ordinary least square, two-stage least square and control function regression models at p=0.05.