Investigating Household Non-Farm Enterprises in Nigeria: What Influences Their Survival and Function in the Face of Droughts?

Authors

• Anna Xochitl Settels Palacios, Macalester CollegeFollow

Document Type

Honors Project - Open Access

Comments

Advised by Professor Amy Damon.

Abstract

This paper examines whether household non-farm enterprises (NFEs) in Nigeria function as coping mechanisms during drought shocks. Using monthly panel data, climatic water balance measures, and survival, linear probability, and staggered difference-indifferences models, I find that drought exposure is associated with increased persistence in NFE activity, reflected in lower hazards of enterprise closure and reduced monthly exit probabilities. These findings suggest that NFEs may be used as a tool by agricultural households to cope with agricultural shocks by reallocating labor, smoothing income, and maintaining economic activity.

Recommended Citation

Settels Palacios, Anna Xochitl, "Investigating Household Non-Farm Enterprises in Nigeria: What Influences Their Survival and Function in the Face of Droughts?" (2026). Economics Honors Projects. 137.
https://digitalcommons.macalester.edu/economics_honors_projects/137