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  26      Downloads  19
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
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