Impact of Migrant Remittances on the Output of Arable Crop of Farm Households in South Eastern Nigeria

Abstract

This study investigated the impact of remittances on the output of arable of remittance and non receiving farm households in South Eastern Nigeria. A multi-stage random sampling and purposive sampling technique was used in choosing the sample. The cost route technique was used in data collection. Data collected using structured questionnaire and interview schedules were analyzed using such statistical tools as Z test, regression analysis and Chow’s test statistic. The result of data analyses revealed that there were significant differences in age, farm size, output and income between the remittance receiving and non-receiving households. The remittance receiving households were relatively older, cultivated more farm land, produced greater output and had higher income than the non-remittance receiving households. The significant factors influencing the output of the remittance receiving households were farm size, labour, other variable inputs like fertilzer and agrochemicals, planting materials, etc and capital which were all positively related to output and significant at 1 percent significance level except for capital that was significant at 5 percent; while for the non reemittance receivng households, the significant factors influencing their output were farm size, labour and capital which were all positively related to output. Farm size was significant at 1 percent while labour and capital were respectively significant at 5 perccent level of significance. The dummy representing household type was significant at 1 percent and positively related to output, implying that remittance receiving households obtained higher output than the non receiving households. The results of the statistical tests for structural shift in production function and differences in output revealed that significant difference between the production functions of the remittance receiving and non-remittance receiving farm households and output advantage for the remittance receiving households derivable from the use of remittance income.