scholarly journals The Impact of Rural Livelihood Diversification on Household Poverty: Evidence from Jimma Zone, Oromia National Regional State, Southwest Ethiopia

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Tsehaynesh Abebe ◽  
Tamiru Chalchisa ◽  
Adugna Eneyew
Keyword(s):  
Rural Households ◽  
Farm Income ◽  
Livelihood Diversification ◽  
Regional State ◽  
Household Poverty ◽  
Jimma Zone ◽  
Wide Range ◽  
Poverty Status ◽  
Livestock Ownership ◽  
The Impact

In Ethiopia, agriculture is the principal source of food and livelihood for many rural households, making it a central component of programs that seek to reduce poverty and achieve food security. Since the sector is faced with many challenges, rural households are compelled to develop strategies through diversification to cope with the increasing vulnerability associated with agricultural production. As a result, the purpose of this research is to assess the impact of livelihood diversification on household poverty in the Jimma zone of Ethiopia’s Oromia regional state. A multistage sampling procedure was employed to select 385 sample household heads. The study utilized data obtained from a cross-sectional survey using an interview schedule, focus group discussion, key informant interview, and personal observations. Both descriptive and econometric data analysis techniques were applied. The result of the FGT poverty measure revealed that the incidence of poverty among rural households was 37.14%, implying that 62.86% were non-poor. The descriptive statistics revealed that age of household, dependency ratio, year of schooling, sex of household, livestock ownership, landholding, non-farm income, market distance, and extension contact were found to have a significant influence on the poverty status of a household at different probability levels. Based on the cost of basic needs approach, it was applied to measure poverty status. The results of the logit model indicate that family size, landholding, livestock ownership, year of schooling, access to credit services, and off-farm income of the households were found to have significantly determined livelihood diversification. Moreover, the results of the propensity score matching indicate that household participation in livelihood diversification has a positive and significant impact on household poverty. Accordingly, households with diversified livelihoods were found to be 9% better off than those that were not diversified in terms of poverty. Policies aimed at increasing the income generation ability of the household should be strongly considered. Therefore, to ensure the capacity of rural households to practice farming along with a wide range of income-generating activities to improve the well-being of the rural poor and have a significant impact on poverty reduction, participating in livelihood diversification should be given emphasis in development planning.

scholarly journals The Effect of the Comprehensive Rural Village Development Program on Farm Income in South Korea

2020 ◽  
Vol 12 (17) ◽  
pp. 6877
Author(s):  
Eunji Choi ◽  
Jonghoon Park ◽  
Seongwoo Lee
Keyword(s):  
Rural Development ◽  
South Korea ◽  
Positive Impact ◽  
Rural Households ◽  
Development Program ◽  
Farm Income ◽  
Rural Village ◽  
Ex Post ◽  
On Farm ◽  
The Impact

Faced with an aging and declining population, many governments around the world endeavor to revitalize their rural communities in a sustainable manner. In South Korea, the Comprehensive Rural Village Development Program (CRVDP) was carried out from 2004 to 2013 as a key strategy to reinvigorate rural areas. This study aims to conduct an ex-post quantitative evaluation of the effectiveness of the CRVDP in boosting rural households’ farm income. In doing so, the present study adopts quasi-experimental research design that is seldom utilized in assessing rural policies. As an alternative evaluation tool with flexibility for using readily available data, the study employed the combined application of the Heckman selection model and the Blinder–Oaxaca decomposition method. The study revealed a significant positive impact of the Program on farm income of rural households in the program-supported areas from both cross-sectional and longitudinal perspectives. A robust causal estimation of the impact of this bottom-up, multi-sectoral rural development program on farm income is achieved, which can be leveraged to widely promote similar type of rural development approach.

scholarly journals Socio Economic Features and Poverty Status of Livelihood Diversifiers in Marginal Communities of Ekiti State Nigeria

2020 ◽  
pp. 73-79
Author(s):  
Ajiboye Abiodun ◽  
A. O. Adekunmi ◽  
S. O. W Toluwase ◽  
F. M. Oluwatusin ◽  
F. O. Osundare ◽  
...  
Keyword(s):  
Local Government ◽  
Rural Households ◽  
Livelihood Diversification ◽  
Urban Centers ◽  
Safety Nets ◽  
Poverty Status ◽  
Lemeshow Test ◽  
Large Farm ◽  
Household Members ◽  
High Degree

The paper investigates the socio-economic features and poverty status of livelihood diversifiers in marginal communities of Ekiti State, Nigeria. Data were collected from a sample of 80 respondents’ from three communities selected from three Local Government Areas. Descriptive and Hosmer and Lemeshow test were used to analyse the data. It was found that those engaged in livelihood diversification were predominantly male while few of them were female. Over 70 percent of them were still in their active age. Only a handful of them could be outright concluded in illiteracy which reveal how ekiti state people cherish education. In all, 71 percent of them were married which explained the difficulty for such families to relocate to urban centers. Household size was fairly large with 60 percent having between 5-10 household members. This further makes it pretty difficult to relocate to urban centers for greener pastures. Only 21 of them operated fairly large farm holdings of more than 4 ha. The result of the Hosmer and Lemeshow test showed that all the respondents have high degree of susceptibility to change their poverty status. The paper justified that livelihood diversification still remains one of the potent tools of dealing with abject poverty and inability to make ends meet among the rural households in a country where government has nothing or little to offer as safety nets for the vulnerable of the society.

scholarly journals The impact of the Vietnam Bank for Social Policies preferential credit on household welfare in Vietnam: a panel data analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
An Duong
Keyword(s):  
Panel Data ◽  
Household Income ◽  
Fixed Effects ◽  
Household Welfare ◽  
Social Policies ◽  
Content Type ◽  
Household Poverty ◽  
Poverty Status ◽  
Status Assessment ◽  
The Impact

PurposeThis study aims to examine the impact of the preferential credit (represented by loan volume and duration) provided by the Vietnam Bank for Social Policies on household welfare (represented by household income and consumption) in Ninh Binh province, Vietnam. It also identifies and ranks the barriers of accessing the credit.Design/methodology/approachThe study applies fixed-effects method to handle the panel data to examine the impact of the credit on poverty reduction. It also uses face-to-face interviews and group discussions to identify and rank the barriers of accessing to the credit.FindingsThe results show that the loan volume significantly helps improve household income, but does not help improve household consumption. For example, a 1% increase in the loan volume is associated with an increase of almost 0.69% in household income, significant at the 1% level. In addition, the loan duration does not help improve household welfare. The major barriers of accessing the credit include the time spent to get to the nearest bank branch and the transparency of household poverty status assessment.Research limitations/implicationsData are collected in three years, the number of the sample limits at 300 households. A few variables are not included in the models due to resource limitation for data collection or the nature of the study method.Practical implicationsThe Vietnam Bank for Social Policies preferential credit may need to increase the loan volume to significantly help improve household welfare, hence reduce poverty. In addition, barriers of accessing the credit such as bank coverage and the household poverty status assessment should be eliminated so that more households, including poor ones, can have a better access.Social implicationsThe Vietnam Bank for Social Policies preferential credit can help to improve household welfare, hence ease household poverty status. To help the credit reach more people, accessing barriers such as bank coverage and the household poverty status assessment should be eliminated.Originality/valueThis is the first study that has examined the impact of the Vietnam Bank for Social Policies preferential credit on household welfare and identified barriers of accessing the credit. The quantitative analysis uses a panel data set constructed from 300 face-to-face interviews with households located in one city and two districts in Ninh Binh province during 2016–2018 and applied the fixed-effects method to examine the impact of the credit on household welfare. The qualitative analysis uses in-depth interviews and group discussion with key persons and related parties to identify barriers of accessing the credit.

scholarly journals Does microcredit use helps farmers win battle against food insecurity: evidence from Jimma zone of Southwest Ethiopia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Amanuel Berhanu ◽  
Abayineh Amare ◽  
Birki Gurmessa ◽  
Yadeta Bekele ◽  
Tamiru Chalchisa
Keyword(s):  
Food Security ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Smallholder Farmers ◽  
Labour Force ◽  
Household Food Security ◽  
Farm Income ◽  
Household Food ◽  
Jimma Zone ◽  
The Impact

Abstract Background Lack of access to credit precludes smallholder farmers from making investment that generates greater level of income, consumption and wealth. To reverse this limit, Oromia Credit and Saving Share Company has been providing microcredit for rural households for the last two decades in the study area. Yet, there is limited knowledge on the impact of this microcredit service on rural household food security in Jimma zone. Therefore, this research aims at generating location-specific data on the impact of microcredit utilization on household food security in the study area. A multistage sampling procedure was employed to select 360 sample households. Data were generated through household survey, focus group discussion and key informant interview. Both descriptive and econometric data analysis techniques (binary logit model and Propensity score matching) were used. Results The results reveal that educational level, family size; land size and non/off-farm income of the households influenced microcredit utilization positively, whereas livestock ownership and farm income negatively influenced it. The analysis of food security status indicate that large proportion of households are food secure. The Propensity score matching result expose that microcredit utilization has generated a positive and significant impact on household food security. Conclusions Efforts towards scaling out services of microcredit institutions should target improving financial literacy of the rural poor and their current financial need on the basis of other resources such as land and livestock they owned with the ultimate goal of ensuring household food security. It is also imperative to realize the labour force capacity of the households in the process of expanding credit service.

scholarly journals Impact of Credit access and Cooperative membership on Food Security of Rural Households in Southwestern, Nigeria

2020 ◽  
Vol 57 (3) ◽  
Author(s):  
Ayodeji Kehinde ◽  
Mary Kehinde
Keyword(s):  
Food Security ◽  
Rural Households ◽  
Household Size ◽  
Farm Size ◽  
Farm Income ◽  
Southwestern Nigeria ◽  
Credit Access ◽  
Binary Logit ◽  
Security Index ◽  
The Impact

This study investigated the impact of credit access and cooperative membership on food security of rural households in Southwestern Nigeria. A multi stage sampling procedure was employed to select 300 rural households for the study. Data were analyzed using food security index, binary logit model, propensity score matching (PSM) and Augmented inverse probability weighting model (AIPW). Binary logit estimate reveals that age, household size, years of education, farm size, farm income and non-farm income significantly influenced the likelihood of rural households being members of cooperatives while household size, years of education, farm size, gender, asset and farm income significantly influenced the likelihood of rural households’ access to credit. Food security index revealed that about 66 percent of the households are food insecure. PSM revealed that cooperative membership and credit access is expected to increase the food security of rural households by approximately 1446 and 1496 kilocalories per person per day, respectively. AIPW revealed that cooperative membership and credit access is expected to increase the food security of rural households by approximately 1888 and 1899 kilocalories per person per day, respectively. The study concluded that credit access and cooperative membership has a positive and significant impact on food security of rural households. Thus, any programmes targeted at ensuring rural households’ food security, particularly southwest should take into cognizance their credit access and cooperative membership.

Off-farm income and food expenditure of rural households in China

2019 ◽  
Vol 121 (5) ◽  
pp. 1088-1100
Author(s):  
Yuying Liu ◽  
Alan Renwick ◽  
Xinhong Fu
Keyword(s):  
Low Income ◽  
Rural China ◽  
Rural Households ◽  
Household Head ◽  
Farm Size ◽  
Farm Income ◽  
Content Type ◽  
Food Expenditure ◽  
Per Capita ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of off-farm income on food expenditure, using survey data of 493 rural households from Gansu, Henan and Shandong provinces in China. Design/methodology/approach A two-stage least squares estimator is used to jointly estimate the determinants of off-farm income and the direct impact of off-farm income on food expenditure while controlling for the endogeneity issue associated with off-farm income variable. Findings The empirical results show that gender, education of household head, household size, farm size, the presence of children, smartphone use and asset ownership mainly determine off-farm income, and the off-farm income affects food expenditure of rural households significantly. In particular, the results show that a 1,000 yuan increase in per capita off-farm income increases per capita food expenditure by 61 yuan. Further estimations reveal that off-farm income has a larger effect on food expenditure of high-income rural households relative to their low-income counterparts. Originality/value Although poverty implications of off-farm income have been well documented, few studies have analysed the effects of off-farm income on food expenditure of rural households. To the best of the authors’ knowledge, there are no studies on this issue that focus on rural China. Therefore, the present study attempts to provide a first insight into the association between off-farm income and food expenditure of rural households in China, with the aim of providing useful evidence for policymakers in their efforts to reduce rural and urban food consumption gap and further increase social welfare.

scholarly journals Sustainable Agricultural Practices, Farm Income and Food Security among Rural Households in Africa

2021 ◽  
Author(s):  
Abdul-Hanan Abdallah ◽  
Awal Abdul-Rahman ◽  
Gazali Issahaku
Keyword(s):  
Food Security ◽  
Food Systems ◽  
Treatment Effects ◽  
Rural Households ◽  
Agricultural Practices ◽  
Sub Saharan Africa ◽  
Farm Income ◽  
Welfare Benefits ◽  
Sustainable Agricultural Practices ◽  
The Impact

Abstract Sustainable agriculture has been recognized in the literature as one of the important pathways to ensuring food systems and livelihoods among rural households in Africa. Using data from the ‘Intensification of Food Crops Agriculture in Sub-Saharan Africa (Afrint)’ project, we examine the impact of adoption of multiple sustainable agricultural practices (SAPs) - zero-tillage, intercropping, residue incorporation and animal manure - on farm incomes and food security (captures as self-sufficiency in food production-SSF) among African rural households. Multinomial endogenous treatment effect (METE) method is applied to control potential selection bias. In addition, the multivalued treatment effects (MTE) model and dose-response-functions (DRFs) are also used to examine the treatment effects heterogeneity associated with SAPs adoption. The study reveals that joint adoption of SAPs is increased farm income and food security relative to the adoption of a single practice. Households obtain significantly higher farm income (FI) and food security (FS) via adoption of at least three practices relative to households adopting less than three practices. These findings reaffirm the benefits of adopting SAPs as a package rather than single practice, to enable farm households to derive significant welfare benefits.

Agricultural labour productivity and credit constraints: implications for consumption in rural Ghana

2020 ◽  
Vol 11 (2) ◽  
pp. 331-351
Author(s):  
Haruna Issahaku ◽  
Ishaque Mahama ◽  
Reginald Addy–Morton
Keyword(s):  
Quantitative Estimation ◽  
Credit Constraints ◽  
Labour Productivity ◽  
Rural Households ◽  
Farm Size ◽  
Living Standard ◽  
Content Type ◽  
Wide Range ◽  
Agricultural Labour Productivity ◽  
The Impact

PurposeThe purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural labour productivity on rural households' consumption in Ghana.Design/methodology/approachThis study uses the Ghana Living Standard Survey round six (GLSS 6) as the main source of data, which happens to be one of the most comprehensive household datasets in Ghana. Quantitative estimation techniques (namely: Endogenous Switching Regression and Two Stage Least Squares) are used to address possible endogeneity and selection into credit markets.FindingsFirst, large households are prone to credit constraints while age (experience) and compliance with extension advice reduce credit constraints. Second, the determinants of agricultural labour productivity for both constrained and unconstrained households are age, sex, farm equipment, herbicide and farm size. Third, household size, education and livestock rearing influence agricultural labour productivity of constrained households. Fourth, credit constraints, irrespective of how they are measured, impede agricultural labour productivity while access to credit fosters labour productivity. Lastly, credit constraints robustly reduce consumption while agricultural labour productivity strongly enhances rural households' consumption.Originality/valueThe first contribution is that, unlike most previous studies, we do not focus on the widely used measure of productivity – output per unit land, but on agriculture labour productivity in particular. Secondly, unlike most previous studies which examine the effect of credit constraints either on productivity alone or consumption alone, our study examines the impact of credit constraints on both. Thirdly, unlike the existing literature which uses one or two measures of credit constraints, we use a wide range of measures of credit constraints – seven different measures of credit constraints. Lastly, our empirical strategy solves at least two critical econometric problems – sample selection bias and endogeneity.

Livelihood Diversification into NFEs and Poverty Alleviation Among Farm Households in Rural India

2019 ◽  
Vol 46 (3) ◽  
pp. 171-178
Author(s):  
Zeeshan ◽  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Poverty Alleviation ◽  
Household Head ◽  
Farm Households ◽  
Rural India ◽  
Livelihood Diversification ◽  
Lower Odds ◽  
Control Factors ◽  
Poor Households ◽  
Poverty Status ◽  
The Impact

Using the Indian Human Development Surveys of 2004–2005 and 2011–2012, this article examines the impact of livelihood diversification of farm households in non-farm enterprises (NFEs) on their poverty status, escaping from poverty and falling into poverty. The estimates reveal that livelihood diversification into NFEs prevent farm households from falling into poverty and helps them escape it. The result also indicates that NN (who did not diversify in 2004–2005 and 2011–2012), NY (who diversified in 2011–2012 but not in 2004–2005), and YN (who diversified in 2004–2005 but not in 2011–2012) had 4.1 per cent, 16.6 per cent and 24.5 per cent, respectively, lower odds of escaping poverty compared to those farm households that diversified their livelihood into NFEs in 2004–2005 as well as in 2011–2012. However, the results of whether previously non-poor households fell in poverty or not show that livelihood diversification status of NN and YN had 28 per cent and 44.7 per cent higher chances of falling into poverty than those farm households who diversified their livelihood in 2004–2005 as well as in 2011–2012. The results of control factors like religion, caste, education of household head, land holding, livestock ownership, quintiles of income and consumption represent consistent coefficients, which reveals robustness concerning the impact of control factors on outcome variables.

Sign in / Sign up

Export Citation Format

Share Document