Description

ABSTRACT

This study focused on the determinants of income inequality among cocoa farmers in Ondo State, Nigeria. The primary data were collected with the aid of structured questionnaire in three local government areas of the State through a multi-stage sampling procedure. Data collected were analyzed using descriptive statistics, Gini coefficient, index of dissimilarity, regression analysis and fields method. The mean income of the respondents was ₦934,219.18, with Gini-coefficient and index of dissimilarity of 0.64 and 0.78 respectively. It was also revealed in the study that household size, farming experience and farm size is significant factors that determine the income of cocoa farmers in the study area. The coefficients of these variables were found to be significant at 1% level of significance. Other factors that significantly determine the income of cocoa farmers in the study area include: age of the cocoa farmer, cost of labour and amount of credit obtained. The coefficients of these variables were found to be significant at 5% level of significance. The field’s method also revealed that marital status and amount of credit obtained reduces income inequality by 0.01% and 3.2% respectively.

Keywords: Cocoa Farmers, Inequality, Economic Appraisal