Income distribution pattern among cocoa farmers in Abia State, Nigeria: The lorenze curve and mean per capita household expenditure approach

Year 2021, Volume: 5 Issue: 1, 21 - 28, 30.06.2021

Ifeanyı Moses Kanu , Austine Chukwukere Okezie

Abstract

The project probed the pattern of income distribution and poverty status among Cocoa farmers in Abia State, Nigeria using Lorenze curve and the mean per capita household expenditure (MPCHE) approach. Graph of the Lorenze curve and calculation of the Gini coefficient from the MPCHE of the Cocoa farmers shows that income was unequally distributed among the Cocoa farmers in Abia State; hence, there was an increasing gap between the poor and the rich Cocoa farmers in the study area. The Pearson correlation analysis between income and poverty of the Cocoa farmers was positive, with a correlation coefficient of 0.676; implying that a one-unit decrease in income inequality will result in a 67.6% decrease in poverty level. Since there was a high level of income inequality among the Cocoa farmers, the bottom 20% of the poor farmers should be encouraged to form cooperatives in order to access credit facilities from the government and other institutions. The government should also provide subsidies and grants to the bottom poor farmers to boost their production causing decreased income inequality and poverty level.

Keywords

Income distribution, Poverty status, Pearson correlation coefficient, Gini coefficient, Cocoa farmers

Thanks

I sincerely appreciate the authors whose research writings and publications helped to make this work a success, thank you all. No amount of words/thank you will be enough to express my gratitude to my project supervisor; Professor C. A. Okezie for his selfless effort, guidance and direction throughout the research activities. He has shown profound and dedicated concern to this research by making invaluable suggestions and guidance through reading the manuscript at all stages, improving the organization, style and clarity of the study; deep down in my heart, I say may Almighty God reward and continue to bless you – Amen.

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