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 Core poor households were 6 70 while 39 20 and 54 10 were moderately and non-poor respectively Half 50 of the total monthly households expenditure was spent on food whereas only 9 24 was spent on house rent Participation in decision making meeting attendance and heterogeneity in social groups were the significant social capital dimensions that had effect on poverty The result also showed that social capital was truly exogenous implying no bi-causal relationship between social capital and poverty It is concluded that social capital and its dimensions have remarkable contributing role in reducing the poverty among fishing households in AkwaIbom State Nigeria