Economic Analysis of the Effect of Social Capital on Food Security Status of Micro-Credit Households in Ekiti State Nigeria

Abstract

This study examined the effects of social capital on food security status of microcredit households in Ekiti-state, Nigeria. Multi-stage sampling procedure was used in selecting the sample for the study. The data for the study were collected by using a well-structured questionnaire from three hundred and eighty-six microcredit households in Ekiti-state. The data were analysed using descriptive, Foster, Greer and Thorbecke measure and probit regression model. The result showed that the average age of the sampled heads of households was 47.3years. Average years of formal education and size of households in the study area were about 6.8 years and 7 persons respectively. The results of the social capital dimensions in the study area showed that the average membership density index was 37.25% while decision making participation index was 61.44%. Heterogeneity and meeting attendance indices were 52.89% and 45.02% respectively. Cash and labour indices were 40.42% and 21.18% respectively. The mean social capital value was 12.10%. The results of the probit regression showed that age, age squared, household size, occupation, years of formal education, membership density, decision making participation, meeting attendance and heterogeneity indices of households significantly influenced food security. The use of instrumental variables led to an increase in the value of adjusted from 0.3760 to 0.3996 relative to the use of the real social capital index. It is recommended that policy that will make households (particularly food insecure ones) participate in associations should be formulated.