DEMAND-DRIVEN INTERVENTIONS ON RURAL POVERTY: A PROPENSITY SCORE MATCHING AND DIFFERENCE-IN-DIFFERENCES ANALYSIS OF FADAMA III IN JIGAWA STATE, NIGERIA
Mohammed Seri
Volume 5 Issue 6
Abstract
This study estimates the causal impact of the Fadama III Community-Driven Development (CDD) program on rural poverty in Jigawa State, Nigeria. Although demand-driven agricultural interventions are widely promoted as poverty reduction instruments, rigorous causal evidence remains limited in Sub-Saharan Africa. Using primary household survey data from 380 beneficiary and non-beneficiary households, this study combines Propensity Score Matching (PSM) with Difference-in-Differences (DID) estimation to address observable selection bias and time-invariant unobserved heterogeneity. Results indicate that participation in Fadama III significantly increased household income and reduced poverty incidence relative to matched controls. The Average Treatment Effect on the Treated (ATT) is positive and statistically significant across Nearest Neighbor, Kernel, and Radius matching algorithms. DID estimates confirm sustained post-intervention welfare gains? Robustness checks, including sensitivity analysis, support the stability of the findings. The results provide credible empirical evidence that demand-driven agricultural interventions can reduce rural poverty when institutional design aligns incentives and local participation. Keywords: Community-Driven Development, Rural Poverty, Impact Evaluation, Propensity Score Matching, Difference-in-Differences.
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