Volume 8, Issue 1, February 2019, Page: 23-30
Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia
Tamrat Gebiso Challa, Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Ashebir Tsegaye Mamo, Agricultural Engineering Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Aman Nebo Tibeso, Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Ibsa Dawud, Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Received: Dec. 12, 2018;       Accepted: Jan. 31, 2019;       Published: Mar. 1, 2019
DOI: 10.11648/j.ijber.20190801.14      View  209      Downloads  82
The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.
Livelihood, Diversification, Nonfarm/off-Farm Income, Negative Binomial Model, Simpson Diversification Index, Double-Hurdle Model
To cite this article
Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud, Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia, International Journal of Business and Economics Research. Vol. 8, No. 1, 2019, pp. 23-30. doi: 10.11648/j.ijber.20190801.14
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Ellis, F. (2000). The Determinants of Rural Livelihood Diversification in Developing Countries. Journal of Agricultural Economics, 51, 289-302. http://dx.doi.org/10.1111/j.1477-9552.2000.tb01229.x.
Barrett, C. B., Reardon, T., & Webb, P. (2001a). Nonfarm income diversification and household livelihood strategies in rural Africa: Concepts, dynamics, and policy implications. Food Policy, 26, 315–331. doi:10.1016/S0306-9192(01)00014-8.
Lanjouw, J. O., and Lanjouw, P. (2001). The rural non‐farm sector: issues and evidence from developing countries. Agricultural Economics, 26(1), 1–23.
Davis, J. R., & Bezemer, D. (2004). The development of the rural non-farm economy in developing countries and transition economies: key emerging and conceptual issues. Available at SSRN 693061.
Haggblade, S., Hazell, P., and Reardon, T. (2010). The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction. World Development, 38(10), 1429–1441. doi:10.1016/j.worlddev.2009.06.008.
Start, D. (2001). The rise and fall of the rural non-farm economy: Poverty impacts and policy options. Development Policy Review, 19, 491–505. doi:10.1111/1467-7679.00147.
Dercon, S. (2002). Income risk, coping strategies, and safety nets. The World Bank Research Observer, 17, 141–166. Retrieved from https://www.jstor.org/stable/3986329https://doi.org/10.1093/wbro/17.2.141.
Ellis, F. (1998).Household strategies and rural livelihood diversification. Journal of Development Studies, 35, 1–38. doi:10.1080/00220389808422553.
Reardon, T., Delgado, C., & Matlon, P. (1992).Determinants and effects of income diversification amongst farm households in Burkina Faso. Journal of Development Studies, 28, 264–296. doi:10.1080/00220389208422232.
Start, D., & Johnson, C. (2004). Livelihood options?: The political economy of access, opportunity and diversification. London: Overseas Development Institute.
Loison, S. A., &Loison, S. A. (2016). Rural livelihood diversification in Sub-Saharan Africa: A literature review. The Journal of Development Studies, 51, 1125–1138. doi:10.1080/00220388.2015.1046445.
Saha, B., & Bahal, R. (2012).Constraints impeding livelihood diversification of farmers in West Bengal. Indian Research Journal of Extension Education, 12, 59–63.
Barrett, C.B., Reardon,T., and Webb, P. (2001b). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food Policy, 26(4), 315–331. doi:10.1016/S0306-9192(01)00014-8.
McDowell, C. and A. de Haan (1997) Migration and Sustainable Livelihoods: A critical review ofthe literature. IDS mimeo.
Christopher B. Barrett, Mesfin Bezuneh, and Abdillahi Aboud (2001). Income diversification, poverty traps and policy shocks in Coˆte d’Ivoire and Kenya.
Steven Haggblade Peter Hazell and Thomas Reardon (2010). The Rural Non-Farm Economy: Prospects for Growth and Poverty Reduction. World Development Vol. 38, No. 10, pp. 1429–1441, 2010. doi:10.1016/j.worlddev.2009.06.008.
Makita, R. (2016). Livelihood diversification with certification supported farming: The case of land reform beneficiaries in the Philippines. Asia Pacific Viewpoint, 57, 44–59. doi:10.1111/apv.12106.
Anke Niehof. 2004. The significance of diversification for rural livelihood systems. Food Policy 29 (2004) 321–338. doi:10.1016/j.foodpol.2004.07.009. Available online at www.sciencedirect.com.
DFID (Department for international development). 2009. Sustainable livelihoods Guidance sheet, Brighton.
Penney, A. 2008.Identification of a livelihood strategy and programme to address underlying causes of food insecurity in Somalia, final report to European Union and GRUPPO SOGES, Turin.
Babatunde RO (2013). On-Farm and Off-farm Works: Complement or Substitute? Evidence from Rural Nigeria. Contributed paper for the 4th International Conference of the African Association of Agricultural Economists, September 22-25, 2013, Hammamet, Tunisia. URL: http://ageconsearch.umn.edu. Accessed on June 10, 2014.
Jirstrom M, Andersson A, Djurfeldt G (2011). Smallholders caught in poverty–flickering signs of agricultural dynamism. In African Smallholders: food crops, markets and policy. (edsDjurfeldt et al.) London: CABI. Chapter, 4:74-106.
Khatun, D., and B.C. Roy. 2012. Rural livelihood diversification in West Bengal: Determinants and constraints. Agricultural Economics Research Review 25(No.1): 115–124.
Sahal, B., and R. Baha. 2010. Livelihood diversification pursued by farmers in West Bengal. Indian Research Journal of Extension Education 10 (2): 2.
Cameron, A. C., and Trivedi, P. K. (2010). Micro econometrics using Stata, Revised Edition. Stata Press.
Olivia,S., and Gibson,J. (2008).The Effect of Infrastructure Access and Quality on Non-farm Employment and Income in Rural Indonesia. Presented at the 2009 Conference, August16-22, 2009, Beijing, China, International Association of Agricultural Economists.
Senadza,B.(2012).Non-farmIncomeDiversificationinRuralGhana:Patternsand Determinants. African Development Review, 24(3), 233–244.
Greene,W.(2008).Functionalformsforthenegativebinomialmodelforcountdata. Economics Letters, 99(3), 585–590.
Zerihun B. Weldegebriel (nd). Rural Non-Farm Diversification in Ethiopia: What Determines Participation and Returns?
Browse journals by subject