Cash contribution significantly influenced farm productivity of the cocoa-based farming households.This implies that a naira increase in the amount contributed, increased farm productivity by 1.007 kg/₦.Farmers’ cash commitment in many social groups enhance their access to loans, which increases their farm productivity.Since the additive form of social capital improves farm productivity of the households, there is a need to investigate the endogeneity effect of social capital on the economic outcome.The introduction of multiplicative social capital variable in the third column of Table 6 lays the foundation for further investigation on the endogeneity effect of social capital.The inclusion of this variable led to slight improvement in Chi2 of 45.36 compared to the baseline model.This result is similar to the findings of Agboola et al..Along with the social-economic/demographic variables, aggregate social capital significantly influenced the farm productivity of cocoa-based farming households where a unit increase in aggregate social capital increased productivity by 0.513 kg/₦.This implies that participation in social groups enhances members’ welfare, including farm productivity.However, accounting for strong bi-directional causality between social capital and farm productivity , using the aggregate social capital model, the original social capital was replaced by an instrumental variable.This choice was guided by correlation and Sargan result of the instrumental variables with the social capital and farm productivity, as suggested by Okunmadewa et al., Omonona et al., Balogun and Yusuf , Adepoju and Oni , and Balogun et al..The instrumental variable leads to a higher coefficient for the social capital than in the actual social capital model.This implies that the direct effect of social capital outweighs the reverse effect.
A unit increase in the instrumented social capital would increase household’s farm productivity by 0.577 kg/₦.Nevertheless, accounting for linear interaction of social capital with unobservables,ebb flow tray the coefficient decreases to 0.218.This result is adopted, because it takes into account the interactions between social capital and the unobservable effect on farm productivity.Based on the result, social capital is endogenous to farm productivity and it should be explored among people of similar characteristics in order to improve their productivity.Thus, social capital is an important factor in improving cocoa farming households’ farm productivity in Southwestern, Nigeria.The basic model is shown in the first column of Table 7.The rationale behind this model is to examine the food security of the households while they are not involved in social capital activities.The Chi2 value showed the econometric modelling is appropriate and correctly specified.This implies that a unit increase in age of household head decreased their food security by 0.394 calories.This is because old household heads’ farm productivity decline as they grow older, which impacts negatively on their households’ food security.Household size significantly influenced food security of the cocoa-based farming households.This implies that an additional member to the households decreased the food security status by 0.527 calories.This is because large households put pressure on household resources including food.Illiteracy significantly decreased the food security by 0.775 calories.However, primary and secondary education significantly increased households’ food security by 0.512 and 0.551 calories, respectively.This could be attributed to the fact that education provides farmers with knowledge of food groups, which eventually improves their food security.Farm size was positive and significantly influenced food security of the cocoa-based farming households.A unit increase in farm size increased the food security by 0.834 calories.This is because resources and cultivation on large farms can increase food production.Farm productivity significantly influenced food security of the cocoabased farming households.
The implication of this is that a unit increase in the output of farmers increased the food security status by 0.307 calories.This is because increase in farm productivity can increase a household’s propensity to consume more through increased food production or by having income available to buy food at any time.Savings significantly influenced food security of the cocoa-based farming households.The implication of this is that a naira increase in savings of the households increased the food security by 0.125 calories.This is because households may adjust to continual lack of access to credit and save money to improve their food security.The model suggests that households’ social-economic characteristics, farm specifics and credit variables play a significant role in improving food security in the study area.The second column of Table 7 shows the inclusion of six additive forms of social capital variables identified in this study.These include density of membership, decision making, cash contribution, labour contribution, meeting attendance and heterogeneity.The rationale behind the model is to examine the food security of the households while they are involved in social capital activities.This new model has a better food security level as reflected in the Chi2 of 45.50.This suggests that household food security improves as households become involved in the affairs of their social groups.This model shows that the effect of social capital on food security is traceable to meeting attendance, decision making, membership density and cash contribution.Meeting attendance significantly influenced food security of the cocoa-based farming households.The implication of this is that a unit increase in attendance of meetings increased the food security of farmers by 0.269 calories.This is due to the fact that participants who recurrently attended group meetings have access to farming and entrepreneurial abilities to improve their farm productivity, which improves their food security status.Decision making index significantly influenced food security of the cocoa-based farming households.The implication of this is that a unit increase in participation of household members in the decision of the group increased the food security by 0.819 calories.This is because farmers who participated actively in decision making of the social groups are well situated to enjoy the benefits of their association, which improves their food security.Cash contribution significantly influenced food security of the cocoa-based farming households.The implication of this is that a naira increase in the amount contributed to their social groups increased food security by 0.401 calories.
Farmers’ cash commitment in many social groups enhance their access to loan for consumption purposes, thereby resulting in improved food security.Membership density significantly influenced food security of the cocoa-based farming households.The implication of this is that a unit increase in the number of social groups a farmer belongs to, increases food security by 0.161 calories.As individuals increase the number of groups, they have active participation; the probability of accessing loans for consumption purpose in many groups is high, thereby resulting in improved food security.Since the additive form of social capital improves the food security of the households, there is a need to investigate the endogeneity effect of social capital on the economic outcome.The introduction of multiplicative social capital variable in the third column of Table 7 lays the foundation for investigation into the endogeneity effect of social capital.The inclusion of this variable led to slight improvement in the Chi2 of 48.91.This result is similar to the finding of Agboola et al..Along with the social-economic/demographic variables, aggregate social capital significantly influenced the food security of cocoa-based farming households.The implication of this is that a unit increase in aggregate social capital increased the food security of the farmers by 0.807 calories.This implies that participation in social groups enhances members’ welfare including food security.However, accounting for strong bi-directional causality between social capital and food security using the aggregate social capital model, the original social capital was replaced by an instrumental variable.The instrumental variable method leads to a bit higher coefficient for the social capital than in the actual social capital model.This implies that the direct effect of social capital outweighs the reverse effect in the explanation of the correlation between the two variables.A unit increase in the instrumented social capital would increase the food security of households by 0.861 calories.However, with the control for linear interactions of social capital with unobservables, the coefficient reduced.This result is adopted, because it takes into account the interactions between social capital and the unobservables in its effect on food security.Based on the result, social capital is endogenous to food security and should be explored among people of similar characteristics in order to improve their food security status.Thus, social capital is an important factor in improving the cocoa farming households’ food security in Southwestern, Nigeria.The instrumental variable approach is the most efficient way to account for all forms of endogeneity, provided suitable instruments are identified.However,flood and drain tray the necessary condition is that the proposed instrument must be correlated with the endogenous explanatory variable, but uncorrelated with the dependent variable and error term.On the basis of correlation analysis, two instruments such as length of residency and membership in ethnic group were identified.
The next challenge is identifying a suitable instrument satisfying sufficient conditions of the Sargan test of over identification.In this regard, Sargan standard over-identification test for validation of the instruments was carried out.The satisfying condition is that the instrument’s p value must exceed significance values of 0.1, to be a valid instrument.The Sargan result of over-identification test is presented in Table 8 and only length of residency is reported to be a valid instrument, because its p value exceeds significance values of 0.1.Thus, on the basis of correlation and Sargan analyses, length of residency was selected to address the endogeneity issue from participation in social networks.Therefore, our estimates on the impact of social capital on farm productivity and food security is unbiased and consistent.Kalimantan Island frequently named as “Borneo” has its original inhabitants which so-called Dayak.According to Ukur , the Dayak tribe is divided into seven races or ethnics and grouped into 405 sub-ethnics which are spread in various areas in the world’s third largest island by the width of 743,330 km2.The grouping of Dayak ethnics and sub-ethnics is based on the similarity of place of residence and language while for custom, art, and culture are more or less the same.Based on this grouping, according to Nieuwenhuis , a Dutch medical doctor and a botanist, mapped the residence of various Dayak ethnics in Borneo until the end of the 19th century.At that time, the distribution of the Dayak people was mapped based on their residence and the characteristic of homogeneous society that can be seen through its clans and organization system.There has not been much significant movement of population from one region to another.Therefore, the Dayak people in the pre-20th century lived in groups and settled according to their respective territories so that they were the rulers of their regions.Reviewing from the livelihood system, as an effort to meet food for daily needs, the life of the Dayak people has been polarized with a system of “farming”.Farming means a system of shifting cultivation from one plot of land to another.Usually the field cleared by slashing, cutting, and burning the forest system without destroying the forest and the surrounding environment.That is what so-called by “system” that is the existence of a local wisdom and values behind it.This is not only the value of wisdom and the way to sustain life, but there are other values implied such as togetherness, compassion, mutual cooperation, arts, as well as ritual and spiritual aspects in the entire cycles of farming in the Dayak community.The treatment of indigenous peoples has gradually evolved, beginning with views of natives as endangered, followed by targeted assimilation and civilizing missions, protectionism and an ethical duty of care, and finally leading to discourses of rights and recognition.To comply with the needs of their daily lives, Dayak people maintain the system order and natural systems and their environment as stipulated in Customary or Adat Law.Acts of destructing and polluting the environment whether intentionally or unintentionally will be subject to sanctions to the doer.For instance, if anyone burns a field and the fire spreads to neighboring lands, he will receive a customary sanction or adat fine.Similarly, if people do fishing using poison , it can kill fish massively, then the doers will also be subject to customary sanctions.Thus, it is clear that the Dayak people place the environment and nature as an integral part of the whole series and their cycle of life.Preserving and taking care of the nature and environment means maintaining and preserving the breath, biota life, and creatures inhabiting it.On the other hand, destroying the nature and environment means harming and threatening the breath, biota life, and its inhabitants.Overall in the Kalimantan region, there are 5 provinces consisting of West Kalimantan, Central Kalimantan, South Kalimantan, East Kalimantan and North Kalimantan which have a similar management system in farming.