Effect of Social Capital on Poverty: Evidence from Fish Farming Households in Akwa Ibom State, Nigeria

Abstract

Despite the role of artisanal fishing in the economy of AkwaIbom state, Nigeria, the fishing households are still poor. Poverty among fishing households could be reduced if they establish good networks among themselves and a high degree of connectedness referred to as social capital. In this study, the effect of social capital on the poverty level of fishing households in AkwaIbom state was therefore investigated. A multi-stage random sampling method was used. With structured questionnaire and a sample size of 120; data were collected on socioeconomic characteristics, participation in local level institutions/associations, and households' expenditure. The data were analyzed using descriptive statistics, and two-stage least square (2SLS). Average age of the household head was 41.9 years with seven persons per household.Households belonged to at most two associations and the most important one was fishing association with 52.6% participation index in decision making. The level of heterogeneity was 21% with 80% meeting attendance index per household head.