Rural Nonfarm Activity Income Diversification Among Smallholder Farmers in Deber Elias Woreda, Amhara Regional State, Ethiopia
American Journal of Environmental and Resource Economics
Volume 4, Issue 2, June 2019, Pages: 84-91
Received: Mar. 14, 2019; Accepted: Jun. 11, 2019; Published: Jul. 12, 2019
Views 148      Downloads 33
Authors
Mezegbu Aynalem, Department of Agree Business and Value Chain Management, Debermarkos University Burie, Campaus, DebreMarkos, Ethieopia
Habtamu Mossie, Department of Agricultural Economics, Wolikte University College of Agriculture and Natural, Wolikte, Ethiopia
Mohammed Adem, Department of Economics, College of Business and Economics, Samara University, Samara, Ethiopia
Article Tools
Follow on us
Abstract
This research was carried out with the aim examining and understanding the different nonfarm diversification strategies pursued by households in Deber Elias Woreda. A multi stage sampling procedure was employed to select 120 households. First the Woreda Kebeles are stratified in to three categories based on the agro ecology. From each stratum, three sample target kebeles and respective villages selected for primary or secondary data collection. Descriptive statistics and binary logit model were used. Narration was used to analyze the qualitative data. The income portfolio analysis revealed that agriculture is the main livelihood activity in the study area contributing 86.9% and nonfarm activity income which accounts for 5.7% the remaining 2.3% share of the total income. Only 40.8% of the sample respondents participate in nonfarm diversification activities. Regarding the participants in diverse nonfarm activities in the study area female-headed households diversified more than male-headed households, better offs diversified more than poor, educated households diversified better than illiterates and households with large number of family members more diversified than those with small household size. The binary logit model result for determinants of nonfarm activity diversification reveals that sex of household head, educational status of household head, credit access; landholdings of households and household size were statistically significant. Finally, this thesis indicates the important policy implications suggesting that programs, projects and/or any interventions designed targeting to engage people in other income generating activities in Debre Elias woreda.
Keywords
Diversification, Income, Nonfarm Activity, Non-participants and Participants
To cite this article
Mezegbu Aynalem, Habtamu Mossie, Mohammed Adem, Rural Nonfarm Activity Income Diversification Among Smallholder Farmers in Deber Elias Woreda, Amhara Regional State, Ethiopia, American Journal of Environmental and Resource Economics. Vol. 4, No. 2, 2019, pp. 84-91. doi: 10.11648/j.ajere.20190402.15
Copyright
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.
References
[1]
Agency., C. C. I., The work of a nation, Ethiopian economy profile 2018. CIA world fact book, January 20, 2018. 2018.
[2]
Ellis, F., Rural livelihoods, diversity and poverty reduction policies: Uganda, Tanzania, Malawi and Kenya. 2001: University of East Anglia.
[3]
Lyson, T. A., Civic agriculture: Reconnecting farm, food, and community. 2012: UPNE.
[4]
Dimova, R. D. and K. Sen, Is household income diversification a means of survival or a means of accumulation? Panel data evidence from Tanzania. Panel Data Evidence from Tanzania (April 6, 2010), 2010.
[5]
Ellis, F., Household strategies and rural livelihood diversification. The journal of development studies, 1998. 35 (1): p. 1-38.
[6]
Demissie, A. and B. Legesse, Determinants of income diversification among rural households: The case of smallholder farmers in Fedis district, Eastern hararghe zone, Ethiopia. Journal of Development and Agricultural Economics, 2013. 5 (3): p. 120-128.
[7]
Kilic, T., et al., Rural nonfarm income and its impact on agriculture: evidence from Albania. Agricultural Economics, 2009. 40 (2): p. 139-160.
[8]
Ahmed, B., What Factors Contribute to the Smallholder Farmers Farm Income Differential'Evidence from East Hararghe, Oromia, Ethiopia. Journal of Asian Scientific Research, 2016. 6 (7): p. 112.
[9]
Zerai, B. and Z. Gebreegziabher, Effect of nonfarm income on household food security in eastern Tigrai, Ethiopia: An entitlement approach. Food Science and Quality Management, 2011. 1: p. 1-22.
[10]
Olale, E. and S. Henson, Determinants of income diversification among fishing communities in Western Kenya. Fisheries Research, 2012. 125: p. 235-242.
[11]
Yizengaw, B., Determinants of household income diversification and its effect on food security status in rural Ethiopia: Evidence from Ethiopia longitudinal rural household survey. 2014, MSc Thesis, Addis Ababa University, Addis Ababa, Ethiopia.
[12]
Melaku, A. and A. Abebe, Bovine Trypanosomosis and Its Vector Type and Density at Debre Elias District, North-western, Ethiopia. Journal of Advanced Veterinary Research, 2012. 2 (4): p. 247-251.
[13]
Gujarati, D. N., Basic econometrics. 2009: Tata McGraw-Hill Education.
[14]
Lanjouw, P. and A. Shariff, Rural non-farm employment in India: Access, incomes and poverty impact. Economic and Political Weekly, 2004: p. 4429-4446.
[15]
Mohamed, S. and D. Haji, Impact of Productive Safety Net Program on Household Food Security and Asset Building: The Case of Goro Gutu District, East Hararghe Zone of Oromia National Regional State, Ethiopia. 2017, Haramaya University.
[16]
Weir, S., The effects of education on farmer productivity in rural Ethiopia. The Centre for the Study of African Economies Working Paper Series, 1999: p. 91.
[17]
Barrett C. B., R. T. a. W. P., Nonfarm activity income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications:. 2001.: p. pp1-31.
[18]
Uraguchi, Z. B. Social protection for redistributive justice: socio-economic and political drivers of vulnerability to food insecurity in Bangladesh and Ethiopia. in International Conference on Social Protection for Social Justice. UK: Institute of Development Studies. 2011.
[19]
AbebeDamte., Farm Households Labor supply to off farm activities in Ethiopia. MA thesis, Addis Ababa University, Ethiopia,. 2002.: p. 108 pp.
[20]
Reardon, T., Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa. World development, 1997. 25 (5): p. 735-747.
[21]
Ellis, F., The determinants of rural livelihood diversification in developing countries. Journal of agricultural economics, 2000. 51 (2): p. 289-302.
[22]
DerejeBeyene., Livelihood Diversification as a strategy to overcome food insecurity in Ethiopia: A case study of smallholder farmers in Bako-TibeWoreda. MA thesis, Addis Ababa University, Ethiopia,. 2010: p. 92 pp.
[23]
Paavola, J., Livelihoods, vulnerability and adaptation to climate change in Morogoro, Tanzania. Environmental Science & Policy, 2008. 11 (7): p. 642-654.
[24]
Muse., A., Diversification of Livelihood Activities as a strategy of promoting food Security a case of DaroLebuWoreda of West Hararghe, Oromia Regional State. MCs thesis, Addis Ababa University, Ethiopia,. 2011: p. 91 pp.
[25]
Akinyemi, M., Effects of Non-Farm Income on Household Welfare in Osun State of Nigeria.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186