scholarly journals Rural Households Livelihood Portfolios and Determinates of Livelihood Diversification in North-Western Ethiopia

Author(s):  
MERSHA TEWODROS GETNET ◽  
Mengistu Ketema ◽  
Bamlak Alemu Alamirew ◽  
Girma Demilew

Abstract Background: Regardless of the persistent image of rural areas in Ethiopia as a continent of subsistence farmers, over the past decades, there had been an outstanding tendency of rural economic diversification. Numerous motives prompt households and individuals to expand the range of assets, incomes, and activities. This paper is devoted to characterize rural households’ livelihood portfolios and examine the determinants of income diversification using primary data collected from two agro-ecological zones in north-western Ethiopia. To analyze, the data both descriptive and inferential statistics were used. Levels of household livelihood diversification were measured using Simpson Diversification Index (SDI). Censured regression models were employed to identify determinant factors affecting livelihood diversification. Result: The result confirmed that households in the study area collected a significant portion of their income from the diverse farm and off-farm sources. Diversification into off-farm sources contributed 35% to total household income. The result confirms that factors linked to household livelihood diversification measured in Simpsons Diversification Index (SDI) are significantly determined by household head educational status, access for tanning, age of household head, family size, livestock ownership, ox ownership, land owned, the proportion of infertile land, access for road and agro-ecologies. Conclusion: From these results, therefore due attention should be given to strengthening the role plaid by off-farm income in a rural area to facilitate the countries goal of a transformation. Therefore, policy measures need to be directed towards creating conducive conditions through the provision of education and tanning and improve households’ access to credit and improve access to a road.

2020 ◽  
Vol 8 (6) ◽  
pp. 4927-4931

Livelihood diversification is a strategy to avoid the risk associated with shocks and to improve livelihood security. Different socio-economic and demographic factors influence the decision of livelihood diversification of households. An attempt has been made in this paper to identify the determinants of livelihood diversification of the rural people using primary data collected from 255 households of Tinsukia, one of the remote districts of India. This study, by employing the logistic regression model reveals that, at less than 10 percent probability level among 11 variables, six variables namely Age of the household Head (AGEH), Type of the Family (FAMILYT) Size of the Family (FAMILYS), Monthly Per Capita Income (MPCI), Access to Credit (CREDIT) and remittance (REMIT) are significant determinant of livelihood diversification. This study will help to formulate proper development policies on the part of various concerned authorities for supporting diversification in the rural areas.


Author(s):  
Tabia Binte Shan ◽  
Jasim Uddin Ahmed

Livelihood diversification is considered as a constructive way to improve the livelihood of poor people in rural Bangladesh. This study examines the level of livelihood diversification and the determinants of livelihood diversification of rural households in Sylhet division by using both primary and secondary data. The primary data were collected from two districts of Sylhet division by adopting simple random sampling procedures. A face to face interview was employed to collect cross section data of total 210 respondents in which semi-structured and pre-tested questionnaire was used. Descriptive statistics, Simpson diversification indexing and Logit model analysis were employed for analyzing the data in accordance with the objectives of the study. The socioeconomic attributes of different respondents indicate that characteristics of sampled respondents differ from each other in respect of their age, gender, literacy rate, family composition, land holdings, credit access etc. However, in rural Bangladesh, a considerable number of households have diversified their livelihoods at different levels through several income generating activities. Though medium and highly diversified households are majority in rural areas; which accounts for 37% and 26% of total households, respectively. Logit model was estimated to analyze the determinants and find that several factors either positively or negatively affect the extent of livelihood diversification. Gender, education level, land holdings and credit access had positive and significant effects on livelihood diversification. On the other hand, dependency ratio and savings had a negative but significant effect on diversification of livelihood in rural areas. Considering the findings, the study suggested some policy implication like encouraging entrepreneurship, expanding credit facilities, development of rural infrastructure along with market facilities; introducing effective pro-poor policies that may assist all poor people to generate more income and higher-return activities. Hence policies that widen the extent of income earning sources and livelihood diversification should be given proper attention.


2020 ◽  
Author(s):  
Agerie Nega Wassihun ◽  
Fikeremaryam Birara Feleke ◽  
Tadie Mirie Abate ◽  
Gebrehiwot Abebe Bayeh

Abstract Agricultural commercialization is a process of transformation from subsistence farming system to market oriented production system. Promoting smallholder farmers to produce beyond their consumption and enabling them to be profit oriented should be given priority in order to foster the economic growth in developing countries where agriculture is the pillar of the economy and smallholder farmers are the largest section of the country like Ethiopia. However, due to a number of reasons smallholder farmers’ level of commercialization is very low and insignificant. There are only few studies conducted about agricultural commercialization in Ethiopia but the studies are not focused to specific crop. Therefore, the aim of this study was to analyse the factors that determine market participation and degree of commercialization by smallholder maize producers in North Western Ethiopia. Data were collected from 385 smallholder maize producers in three districts where maize is produced potentially through multistage sampling method. Interview schedule, focus group discussion and key informant interview were used to collect the required primary data. In order to achieve the study objectives, Tobit model was employed to analyse both market participation and intensity of commercialization. From the analysis education level, livestock holding, frequency of extension contact, training, off/non-farm income activity, quantity of maize and lagged price were found to have significant effect on market participation whereas intensity of commercialization was significantly influenced by education level, livestock holding, training, frequency of extension contact, off/non-farm activity, quantity of maize produced and lagged price. Finally based on the findings, smallholder maize producers should be supported regularly by extension agents in order to increase their practical skills which results enhancement of their market participation and intensity of commercialization.


2018 ◽  
Vol 49 (3) ◽  
pp. 231-238 ◽  
Author(s):  
Adeniyi Felix Akinrinde ◽  
Kemi Funmilayo Omotesho ◽  
Israel Ogulande

The rising incidences of poverty among rural farming families are the reason behind renewed interest in income diversification. This study determined the level of income diversification; identified alternative income sources; examined the reasons for diversification; and identified the constraints to diversification. A three-stage random sampling technique was used in selecting 160 households on which a structured interview schedule was administered. Descriptive statistics, a Likert-type scale, and the Pearson’s Product Moment Correlation were used for data analyses. Findings reveal that 1.3% of the households had no additional sources of income while 40.6% had at least four. Trading (55%) and livestock keeping (40.7%) were the most popular alternative income sources. The declining farm income (mean = 2.96) was the primary reason for diversification, while poor rural infrastructure (mean = 3.04) was the most severe constraint to income diversification. Farm size, access to extension services, household size, age and educational level of the household head were significantly related to the level of income diversification at p < 0.05. The study concluded that the level of income diversification was high and influenced by socioeconomic characteristics of the households. It recommends that the government should provide adequate infrastructural facilities in rural areas. Farmer associations should also ensure better prices for agricultural produce through joint marketing.


2009 ◽  
Vol 9 (30) ◽  
pp. 1914-1926
Author(s):  
Ayalneh Bogale ◽  
◽  
Shimelis A ◽  

Even though the struggle to achieve food security at the household level in the rural areas of Ethiopia dates back a long period, it has remained as a challenging goal even today. Making their living on marginal, moisture stressed, heavily degraded and less productive land, households in rural areas of Dire Dawa face persistent food shortages. The design and implementation of effective measures to reduce household food insecurity in the region depends on in-depth understanding of its covariates. This study seeks to address these issues by assessing location specific socio-economic factors that influence food insecurity of households in rural areas of Dire Dawa Administrative region. The analysis is based on survey data gathered from randomly selected 115 sample rural households in the study area. A binary logit model was used to identify the factors influencing household level food insecurity. A total of thirteen explanatory variables were included in the empirical model. The empirical results estimated using the survey data to identify the determinants of food insecurity among rural households in the study area revealed mixed impressions. Among variables considered , family size, annual income, amount of credit received, access to irrigation, age of household head, farm size, and livestock owned showed theoretically consistent and statistically significant effect. However, estimated coefficients of number of oxen owned and dependency ratio showed theoretically inconsistent and statistically insignificant effect on the probability of household to be food insecure.. Estimated coefficients of sex of household head, total off-farm income, education of household head and amount of food aid received were not found to be statistically significant in determining household food insecurity in the study area. The findings imply that improvement in food security situation needs to build assets, improve the functioning of rural financial markets and promote family planning. These areas could provide entry points for policy intervention to reduce hunger and augment household and community livelihood opportunities.


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.


2018 ◽  
Vol 10 (11) ◽  
pp. 4281 ◽  
Author(s):  
Umar Mukhtar ◽  
Zhangbao Zhong ◽  
Beihai Tian ◽  
Amar Razzaq ◽  
Muhammad Naseer ◽  
...  

Urban migration unlocks new employment opportunities for rural dwellers in a productive manner. This study assessed the quality of employment of migrant workers, and its effect on rural households’ welfare. To this end, we used primary data collected from the four major districts of Lahore, Gujranwala, Faisalabad, and Sialkot in Punjab, Pakistan. These data include 504 immigrant and non-immigrant families in rural areas, and 252 migrant workers in urban destinations. We use IV probit and two-step sequential estimation methods for the empirical analysis. The study provides new insights for migration in Pakistan. First, migrant workers are better off in their new urban settings in terms of improved incomes and living conditions, but their social protection status is still poor. Second, the results of the employment quality models show that migration is a successful strategy for rural households to improve the quality of their employment. In addition, the characteristics of migrants and native households affect the relative improvement in the quality of employment and migrants’ conditions. Third, the results of the propensity score matching technique suggest that migration has a positive impact on rural households’ income, and these impacts are more pronounced in large cities. Based on the findings, the study recommends that the government should invest in quality education in rural areas, and ensure that social security schemes are provided for migrant workers in urban areas.


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