scholarly journals Decomposition of Rural Poverty by Demographic Context of Rural Households: The Case from Kola Agro-Ecological Zone of Humbo Woreda, Southern Ethiopia

2020 ◽  
Vol 8 (1) ◽  
pp. 1-6
Author(s):  
Feleke Yehuwalashet Motuma
Author(s):  
Feleke Yehuwalashet Motuma ◽  
Temesgen Tadewos Zema

The major objective of this study was analyzing the demographic context of rural households by food poverty level: A case of Humbo district, Southern Ethiopia. To achieve this objective, relevant data were collected through a structured interview. The generated data were computed through descriptive (frequencies, percentages, ratios, mean values, standard deviation, standard error) and t-test inferential statistics to analyze desired household characteristics to poor and non-poor categories in Humbo district. Hence, comparing with non-poor rural households, poor rural households have less average of family size in Humbo district than non-poor households showing significant difference at 1 per cent significance level. There was an insignificant mean difference between poor and non-poor concerning dependency ratio, average age household heads and the female-male ratio of rural households at 5 per cent significance level in Humbo district. Our final conclusion was that effort should be made to improve those identified the demographic factors to alleviate rural food poverty of Humbo district. 


Author(s):  
Wanno Wallole ◽  
Yishak Gecho ◽  
Tewodros Tefera

Livelihood diversification is enchanting a significant effect in generating household’s income. The livelihood diversification includes:on-farm, non-farm and off-farm strategies which are undertaken to get extra income and moderate hazard and insecurity. The purpose of this study was to examine the factors affecting the level of rural household livelihood diversification in Gamo Zone, Southern Ethiopia. The study was conducted by using a cross-sectional research design. It is a quantitative dominant concurrent mixed research methodology where the qualitative research is complemented with interpretations and triangulation. By applying multi-stage random sampling technique, a sample size of 400 household heads from 6 sample villages was selected and data were collected using interview schedule and via key informant interviews and focus group discussions. Descriptive statistics were analyzed and presented by using tables, graphs and figures while chi-square-test and F-test were employed to make statistical inferences. Tobit model was employed to identify the intensity of factors affecting of rural household’s livelihood diversification. Out of the 14 hypothesized explanatory variables, 6 variables namely age, education, access to extension, media access, distance to urban centers and training were found to have significant effect in rural household livelihood diversification decision. Therefore, the findings of this imply that rural households’ development policies should consider these factors in designing rural household livelihood diversification strategy.


2019 ◽  
Vol 55 (1) ◽  
pp. 76-94
Author(s):  
Sunil Khosla ◽  
Pradyot Ranjan Jena

Rural households continuously move into and out of poverty due to various factors; and in response to this phenomenon, these rural households adopt several strategies. The purpose of the present paper was to examine the role of livelihood diversification and social capital in the movement of these households into and out of poverty in Eastern rural India. The present study classified households into four poverty groups (called poverty dynamics) based on the panel data gathered from 1353 rural households between 2004–2005 and 2011–2012. The study used the Sustainable Livelihoods Approach (SLA) and the multinomial logit model (MLM) to examine the poverty outcome between 2004–2005 and 2011–2012. As per the data collected, at the state level, 25.26% of households were chronic poor and 37.04% of households ascended out of poverty, while 8.20% of households descended into poverty between 2004–2005 and 2011–2012. Further, it was found out from the SLA that there is a positive relationship between the phenomena of non-farm activities and escaping poverty. The result from the MLM shows that social capital in the form of group membership in different saving schemes and social groups helps to ascend out of poverty.


2014 ◽  
Vol 74 (1) ◽  
pp. 87-114 ◽  
Author(s):  
Davide Castellani

Purpose – The purpose of this paper is to examine how shocks suffered by rural households in Ethiopia influence their decision to borrow and the source of credit. Design/methodology/approach – First, suppose a household faces a set of four borrowing alternatives: only formal borrowing, only informal borrowing, both formal and informal borrowing, and non-borrowing. Second, the paper assumes that the random component is independently and identically distributed in accordance with the extreme value distribution. These assumptions lead to the multinomial logit model. The paper estimates the model using data from a survey of 350 rural households in Southern Ethiopia. Findings – The paper finds that shocks are important factors in explaining both the decision to borrow and the source of credit. In particular, negative shocks that affect household's assets, such as the seizing of farmland and theft, or human capital, such as the death of the family head, reduce the probability of borrowing from formal lenders or from both formal and informal lenders at the same time. The study supports only to some extent the assumption that informal credit contributes to smooth consumption. Last, networking effect is very significant and demonstrates how the two markets interact. Research limitations/implications – A model that would consider dynamic consumption patterns would have been more appropriate. In fact, one of the limitations of the study is the reliance on a cross-section analysis and the data is limited to just one village. Further research would extend the data set geographically and across time. Practical implications – The formal lenders are not willing to provide contingent loans, maybe because of a limited ability to assess and diversify risk. Besides, the available formal credit products are not proper to finance long term risk management strategies but pesticides, fertilizers and improved seeds that are entirely used in every agricultural cycle. In this regard, proper risk transfer strategies and instruments, as well as better tailored loan products, are needed in order to increase outreach into the rural areas. Originality/value – To the authors’ knowledge, this is the first paper that investigates how shocks influence the decision to borrow and the source of credit in Ethiopia.


2021 ◽  
pp. 232102222110243
Author(s):  
Biswajit Ray ◽  
Promita Mukherjee

To what extent forests contribute to rural livelihoods in developing countries? To find a plausible answer for this, this article explores whether inclusion of forest income to rural households’ total income accounts reduces poverty and income inequality, and also enables rural households to cope with shocks. To this end, we conducted household surveys in eight forest-dependent villages in the Indian state of West Bengal between August 2016 and August 2017. Using data from 407 sample households, we measured forest income of a household as the aggregate monetary value of resources extracted solely from forest ecosystem and compared this with other economic activities of the households. We calculated poverty indices and Gini coefficient with and without forest income, and we employed regression and Gini decomposition techniques to assess the safety net role and relative contribution of forest income to reducing rural poverty and inequality when compared to other sources of income. We found that the addition of forest income to household accounts significantly reduces measured poverty and inequality. Besides, the sample households, especially the poor, extract more from forests to cope with severe covariate shocks due to greater income certainty and thus adopt forest-dominated coping strategy in time of shocks and crises. The implication is that forest income needs to sustainably flow to the poor along with the development of better safety nets in forested rural areas in order to improve the forest-based rural livelihoods in developing countries like India. JEL Codes: Q23, Q56, Q57


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