Effect of Social Capital on Household Welfare and Poverty Reduction in Ogbomoso Agricultural zone, Oyo State, Nigeria

Abstract

This study examined the effect of social capital on household welfare and poverty reduction in Ogbomoso agricultural zone, Oyo State. Data for the study were collected from 236 farmers randomly selected households. Descriptive and logit regression model was used to analyse the data. The result showed 98.3% of the respondents were male, with the average age of 46.1%, and average household sizes of 4.4. Index of participation at decision making of 7.8% suggested that members of local level institution attended meeting regularly which necessitate their active participation in decision making, 10.7% of heterogeneity suggested that there is low level of diversity among members in their various association which affect level of benefit derived from the association. The result further
shows that, other assets and household size make a significant contribution to household poverty, at 10% significant level, though other assets was positive and household size was negative. The social capital index also has a positive and significant at 5%. The major effects of social capital are attributable to heterogeneity index which influence household poverty status and consequently improve its welfare. It is evident from the study that household assets (other assets) can complement social capital in improving household poverty status.