scholarly journals Income Diversification and Economic Welfare of Rural Households in the Volta Region of Ghana

2021 ◽  
Vol 12 (1) ◽  
pp. 120
Author(s):  
Kwabena Asomanin Anaman ◽  
Kinsley Delanyo Adjei
Keyword(s):  
Household Income ◽  
Rural Households ◽  
Household Head ◽  
Living Standards ◽  
Economic Welfare ◽  
Simpson Index ◽  
Income Diversification ◽  
Factors Influencing ◽  
Volta Region ◽  
Using Data

We established the factors influencing income diversification, and the linkage between income diversification and economic welfare of rural households, in the Volta Region of Ghana, using data from 894 randomly-selected households, obtained through the latest round of the Ghana Living Standards Survey undertaken by the Ghana Statistical Service from October 2016 to October 2017. The overall household income diversification, measured by the Simpson Index was positively influenced by the age of the household head, remittances received by the household, and the size of the household. Using another measure of diversification, the number of income-based activities (NIBA), we established that the age of the household head influenced NIBA in a cubic fashion, similar to an S-shaped curve. Income diversification declined at very young ages from 17 to 31 years; it then increased from 31 years to 74 years before declining during the household head’s advanced age and retirement period. The positive drivers of NIBA included moderate levels of formal educational attainment, remittance, household size and electricity connection. We showed that income diversification influenced economic welfare only when used at moderate to high levels.

scholarly journals A Political Economy Analysis of Income Diversification Activities of Rural Households in the Northern Region of Ghana

2019 ◽  
Vol 6 (5) ◽  
pp. 10
Author(s):  
Gamel Abdul-Nasser Salifu ◽  
Kwabena Asomanin Anaman
Keyword(s):  
Food Security ◽  
Rural Households ◽  
Household Head ◽  
Household Consumption ◽  
Northern Region ◽  
Income Diversification ◽  
Consumption Expenditures ◽  
Physical Assets ◽  
The Government ◽  
Using Data

This study analysed income diversification activities of 1,194 rural households in the Northern Region of Ghana using data from the sixth round of the Ghana Living Standards Survey (GLSS) undertaken by the Government of Ghana, through the Ghana Statistical Service. We found that 92% of rural households were engaged in farm activities affirming agriculture as the dominant profession of rural households in the region. The number of income-generating activities undertaken by these households was significantly related to the size of the household, previous apprenticeship training acquired by the household head, ownership of a motor bike/car, and ownership by the household of specific physical assets which also provide information, communication and entertainment services, namely mobile phone, radio and television sets. The share of wage-based income in the total household income was significantly related to the age of the household. The overall income diversification index was positively influenced by the level of remittances and the number of rooms in the house; the latter allowed for increased possibility of renting rooms in the house to workers. We also established that overall income diversification index was associated with decreasing total household consumption expenditures and reduced food security at relatively low levels. However, this index was linked to increasing household consumption expenditures and improved food security at relatively higher levels. Our findings suggest that income diversification could be an important poverty-reducing measure if well-designed Community and State support programmes for rural households are implemented in the region under conditions of peace and good security.

Do Foreign Remittances Matter in Attaining Zero Hunger?

2020 ◽  
pp. 197-215
Author(s):  
Oluwakemi Adeola Obayelu ◽  
Rebecca Funmi Akinmulewo
Keyword(s):  
Food Insecurity ◽  
Rural Households ◽  
Household Head ◽  
Farm Size ◽  
Living Standard ◽  
The North ◽  
Using Data ◽  
Zero Hunger ◽  
Female Headed Households ◽  
Food Insecurity Access

Foreign remittance has remained a major source of income and a means to reduce hunger for many poor people in developing countries. The contribution of foreign remittances to food insecurity status of rural households in Nigeria was assessed using data from 2015/2016 Living Standard Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA). Food insecurity status was achieved using the household food insecurity access scale. Data were analysed using descriptive, ordered, and nested logit models. Female-headed households residing in south-east zone with 51 to 70 years old heads and more than six members had greater access to remittances but were severely food insecure. Drivers of food insecurity were age, gender, marital status, education of the household head, membership of cooperatives, access to extension, farm size and per capita income, and living in the north central geo-political zone. Foreign remittances had a positive effect on the food insecurity status of rural households.

scholarly journals Income diversification for risk adaptation: the case of rural households in Vietnam

2020 ◽  
Vol 4 (2) ◽  
pp. First
Author(s):  
Nguyen Thi Mai
Keyword(s):  
Market Access ◽  
Negative Impact ◽  
Rural Households ◽  
Household Head ◽  
Household Survey ◽  
Skills Training ◽  
Policy Implications ◽  
Income Diversification ◽  
The Impact ◽  
Years Of Schooling

This study uses the data extracted from the Vietnam Access to Resources Household Survey 2008, 2010, 2012, 2014, 2016 on 2,107 rural households in Vietnam. Results from logit regressions show that: (1) natural disasters, plant or animal diseases, mean years of schooling of all labor members in the households, household size, levels of participation in associations and social organizations help to increase the ability of households to diversify when there is a risk; (2) On the contrary, the harmful impacts from pest of the previous year, mean years of schooling of household head, age, ethnicity, land area, attitude to risks exert a negative impact on the ability of income diversification. Thereby, the study offers some policy implications such as improving the educational level of the households, encouraging households to actively participate in training sessions, skills training and market access organized by the State and NGOs, disseminating knowledge on risk response measures through income diversification. The novel point of the study is the application of the microeconomic theory to measure the impact of attitude to risk on the decision to diversify income when risks occur. In addition, the study also examines the impact of each type of risk, and the severity of the risk on the choice of income diversification to cope with risks.

scholarly journals Determinants of Income Diversification and Its Effects on Household Income in Rural Vietnam

2014 ◽  
Vol 221 ◽  
pp. 20-41
Author(s):  
KHAI TRẦN TIẾN ◽  
Danh Nguyễn Ngọc
Keyword(s):  
Household Income ◽  
Rural Households ◽  
Generalized Method Of Moments ◽  
Physical Capital ◽  
Living Standard ◽  
Income Diversification ◽  
Data Set ◽  
Household Level ◽  
Income Sources ◽  
Economic Regions

Exploiting data of Vietnam Household Living Standard Survey 2010, the study aims at finding determinants of income diversification at household level in rural Vietnam and evaluating effects of income diversification on household income. The data set covers 6,571 rural households of eight socio-economic regions. Herfindahl-Hirschman index (HHI) is applied to show income diversification at household level. Two-limit tobit model is applied to detect the effects of household features and community characteristics on HHI, and then generalized method of moments (GMM) is employed to test the effects of HHI on household income. The results show that human capital in both quantity and quality terms plays a substantial role in encouraging rural households to diversify their income-generating activities. Rural households with higher education level and higher diversification ability tend to have more diverse income sources. Owning larger sources of physical capital, or better credit accessibility, and social capital also helps rural households improve income diversity. The results also confirm that income diversification is the dynamic of rural income improvement. Households can increase their income by diversifying their farm and non-farm activities.

scholarly journals Drivers of Rural Income Diversification in Developing Countries: Case Study of Burundi

2021 ◽  
pp. 32-58
Author(s):  
Eloi Edouard Kwizera
Keyword(s):  
Household Income ◽  
Reading Skills ◽  
Household Head ◽  
Well Being ◽  
Income Level ◽  
National Language ◽  
Income Generation ◽  
Income Diversification ◽  
Agricultural Income ◽  
Rural Income

The significance of rural income generation is obvious for rural well-being enhancement and rural development in particular and widely national development. The research carried on income pattern analysis enabling to detect the ways to achieve the rural income generation enhancement and so far, the rural development and rural well-being improvement. The discussions about income diversification aim have mainly been divided on one hand in income maximization household objective by increasing output, on the other hand, risk and seasonality of income management. Nevertheless, in all cases, income diversification has been seen as an income increasing factor of income, poverty reduction, and well-being enhancement. The study findings shows that The income level is quite different by sources of income of household, a high income level is achieved in beekeeping at level of 5134.04 thousand BIF, but only 5% of households are involved in beekeeping, whereas the lowest income average is realized in livestock selling, 12.88 thousand BIF and 83% of households benefit from the income of livestock selling. The income from agriculture is also low, it is 112.1 thousand BIF and 100% of the 2,560 households surveyed are involved in agricultural income generation. It is also shown that there is a high share of agricultural income in the total rural income, 67% of rural income is from agriculture. The income diversification level was calculated by using the Berry index. The average Berry index of 0.06 shows a low-income diversification level in the rural households of Burundi. The analysis of income diversification by considering the household income diversification index has proven a higher income for household that their income sources are diversified. The household average income for the household with sources of income diversified is 2.7 times higher than those with one source. The analysis of determinants of income diversification participation realized using probit model has shown that household income, agricultural household landholding, the age of household head, belonging to agricultural producers’ organization, reading skills at least of the national language, and access to market positively induce the income diversification participation, while female household headed status and the non-governmental organizations interventions negatively impact the income diversification participation. The intensity of income diversification analysis done by Tobit model shows that income diversification intensity is positively influenced by household income level, producers’ organization participation, access to market, age of household head and negatively affected by the female household headed status, and non-governmental organizations interventions. Based on the findings of the study, the following recommendations and policy implications are possible to improve the rural well-being and poverty reduction by increasing rural income through income diversification facilitation. The research findings showed that rural income diversification is positively related to market access. The policy aiming at rural income enhancement by increasing rural income source diversification might take into consideration the increasing availability of the market and linkages of rural households to the market by any means. The increase in the market orientation of the rural household might be achieved by increasing the availability of the market information system. Policy making might focus on increasing factors that increase the market orientation decisions of rural household by the increase of the rural market place, making market information available and enhancing the transport means of rural products. The policy targeting rural income enhancement and sources of diversification should be achieved by reducing the vulnerability of young farmers and households headed by females by supporting rural young farmers and female farmers. The increasing economic empowerment of young farmers and female headed households should be promoted. The policy makers should also focus on increasing education skills at least the reading skills of the national language of rural farmers since reading skills have been proven to have a positive influence on rural income source diversification. The adult literacy programs might continue and try to reach the majority of rural uneducated farmers.

scholarly journals LINKAGE BETWEEN INCOME DIVERSIFICATION AND ASSET OWNERSHIP IN RURAL HOUSEHOLDS OF YAYU WOREDA AND HURUMU WOREDA, OROMIA REGIONAL STATE, ETHIOPIA

2019 ◽  
Vol 7 (1) ◽  
pp. 56-72
Author(s):  
Mabiratu Dangia Kajela ◽  
D. Prem Kumar Dara
Keyword(s):  
Household Income ◽  
Rural Households ◽  
Principal Component ◽  
Primary Data ◽  
Asset Ownership ◽  
Affect Intensity ◽  
Income Diversification ◽  
Household Asset ◽  
Aggregate Index ◽  
Household Heads

Rural households are engage in a variety of farm and non-farm activities based on initial assets endowments to diversify their income and cope with the risk of agricultural loss. This study was designed to assess linkage between income diversification and asset ownership among rural households in study area. Mult-stage sampling techniques were used to collect primary data from 237 farm households using semi-structured questionnaire. Descriptive statistics and econometric models were used to analyze the data. Tobit model was used to pinpoint factors that affect intensity of household income diversification and principal component analysis was used to index asset owned by households. The study shows that farm activities are the most important source of income for rural households in the study area contributing 90.92% of total households income with the remaining 9.08% originating from non-farm activities. A mean of income diversification index is 0.414(41.4%).  Factors that affect intensity of household income diversification were: aggregate index of human capital, aggregate financial capital index and extension contact positively and membership in agricultural cooperative, sex of household heads and access to training negatively. In the study area generally, household asset ownership positively and significantly affected intensity of households income diversification and it has served as means for income diversification. Asset endowment needs to be considered by policy makers in the planning of agricultural and non-agricultural initiatives in the study area.

scholarly journals Multilevel and Spatially Heterogeneous Factors Influencing Poor Households’ Income in a Frontier Minority Area in Northeast China

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Binyan Wang ◽  
Mark W. Rosenberg ◽  
Shijun Wang ◽  
Peifeng Yang ◽  
Junfeng Tian
Keyword(s):  
Northeast China ◽  
Rural Households ◽  
Arable Land ◽  
Household Head ◽  
Household Level ◽  
Farm Work ◽  
Factors Influencing ◽  
Poor Households ◽  
Environmental Level ◽  
Minority Area

Increasing the income of poor rural households is essential for the realization of China’s goal of sustainable development, which entails inclusive and equitable development and reducing the developmental gap between urban and rural areas. We conducted a case study of Wangqing County, a frontier minority area in Northeast China to examine spatial patterns and income differentials among poor rural households in this area. We quantified existing associations between household-level and environmental-level characteristics and income by applying hierarchical linear models. We subsequently applied Geographically Weighted Regression to analyze the spatial heterogeneity of the environmental-level variables and develop an understanding of the interaction mechanism of influencing factors. The results revealed that the distribution of villages, where income levels were similar, showed significant spatial agglomeration characteristics. Our findings also provide empirical evidence that household- and village-level characteristics together determine the income of poor households, but that household-level characteristics determine destitution to a greater extent than environmental characteristics. More specifically, the sex, health condition, and labor capacity of the household head, household size, the dependency ratio, social welfare, and off-farm work are significantly associated with household income. At the environmental level, arable land, the distance to the county center, and the average altitude had spatially heterogeneous impacts that varied in direction and intensity. This systematic study provides a more comprehensive and integrated understanding of the factors influencing the income of poor households in a frontier minority area in Northeast China.

scholarly journals Microcredit Accessibility in Rural Households: Evidence from Indonesia

2019 ◽  
Vol 65 (1) ◽  
pp. 67
Author(s):  
Danang Budi Santoso ◽  
Christopher Gan
Keyword(s):  
Logistic Regression ◽  
Interest Rates ◽  
Marital Status ◽  
Household Income ◽  
Rural Households ◽  
Binary Logistic Regression ◽  
Primary Data ◽  
Economic Welfare ◽  
Education Attainment ◽  
Factors Affecting

Extant literature suggests that microcredit may improve borrowers’ social and economic welfare. This study aimed to investigate the microcredit accessibility of rural households in Indonesia. Binary Logistic regression was used to distinguish the characteristics of microcredit borrowers and non-borrowers, and the factors affecting the approval of microcredit application. Primary data was collected through a survey on 488 rural households in Bantul, Yogyakarta. The empirical results suggested that age, marital status and education attainment significantly affect the characteristics of clients and non-clients of microcredit. The results also revealed that age of borrowers, household income, interest rates, and loan duration are key determinants affecting microcredit accessibility. The implications of the findings were provided.

scholarly journals Effects of Remittances on Rural and Regional Poverty in the Republic of Serbia

2017 ◽  
Vol 55 (1) ◽  
pp. 105-120 ◽  
Author(s):  
Drinka Peković
Keyword(s):  
Poverty Alleviation ◽  
Rural Households ◽  
Household Consumption ◽  
Living Standards ◽  
Living Standard ◽  
Poverty Index ◽  
Poverty Level ◽  
The Republic ◽  
Using Data ◽  
Additional Income

Abstract This paper examines an effect the remittances have on poverty alleviation of rural households and regions in which exist a large number of the emigrants among population. Remittances represent a significant part of additional income of the household mostly used for consumption and improvement of the living standard. Using data from Living Standards Measurement Survey 2007, an impact of the remittances on the poverty index, depth of poverty and poverty severity in the Republic of Serbia is estimated. Due to limitation of data, counterfactual household consumption is estimated in conditions of remittances absence, where the last is treated as exogenous transfer of money. The results show that remittances have a larger impact to poverty of rural households, especially to the depth and severity of poverty. According to the regions, remittances have the largest impact to the poverty level in East Serbia, but these effects on poverty depth and severity are not statistically significant. The smallest changes in the depth and severity of poverty are noticed in Sumadija.

DETERMINANTS OF INCOME DIVERSIFICATION DECISION FOR OFF-FARM WORK OF RURAL HOUSEHOLDS IN KONTUM PROVINCE, VIETNAM

2018 ◽  
Vol 126 (3E) ◽  
Author(s):  
Đào Thị Ly Sa
Keyword(s):  
Poverty Reduction ◽  
Rural Households ◽  
Household Head ◽  
Sampling Technique ◽  
Farm Size ◽  
Income Diversification ◽  
Access To Credit ◽  
Farm Work ◽  
Number Of Children ◽  
Multi Stage

Abstract:  Kon Tum, a mountainous northernmost border province in the Central Highlands of Vietnam, is one of the poorest provinces in Vietnam. Many studies recently identified that the diversification of incomes is a critical livelihood strategy for rural households in developing countries. Thus, this study analyzes the factors influencing income diversification decision for off-farm work of rural households. The binary logit model will be employed to investigate the determinants of income diversification decision of rural households for off-farm work. Through 200 households selected using multi-stage sampling technique, this study showed that participation in off-farm employment was influenced by gender, age, education of household head, family size, number of children attending school, farm size, access to credit, and access to tarred roads. The findings suggested that it is important to support both agricultural and non-agricultural sectors to succeed in terms of poverty reduction and food security.Keywords: income diversification, off-farm work, rural household, poverty,  Kon Tum

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