Synopsis: Effects of agricultural mechanization on economies of scope in crop production in Nigeria

Economies of scope (EOS) refer to the economic benefits of producing multiple types of outputs rather than specializing in producing a specific output. EOS closely relates to the potential for crop diversification. Using panel data from farm households and crop-specific production costs in Nigeria, we estimate how the adoption of animal traction or tractors affects EOS between rice, non-rice grains, legumes/seeds, and other crops, which are the crop groups that are most widely grown with animal traction or tractors in Nigeria.