English

Apelike Wobuibe Neglo Komikouma,Lyu Kaiyu,Gebrekidan Tnsue

doi:10.5897/jdae2020.1231

English

Apelike Wobuibe Neglo Komikouma, Lyu Kaiyu + Show 1 more

Open Access

https://doi.org/10.5897/jdae2020.1231

Copy DOI

Abstract

Undertaking non-agrarian income-generating activities to reduce overreliance on agriculture, production failures, and income fluctuations is a household-amenable, self-insurance mechanism, which provides employment opportunities and capital investment. This article examines the determinants of participation in non-farm activities and effect on household income. Heckman two-step procedure was used to analyze a three-wave survey data set captured from 3866 households. Crop failures, insufficient intake of food, household consumption expenditure, gender, family size, literacy, health status, farm animals holding, access to credit, total hired labor, cooperative membership and agricultural extension services were factors influencing household involvement in non-farm work. Furthermore, the findings establish that there is a decline in the likelihood of households headed by aged people, who tend to rely on subsistence farming to engage in alternative non-agrarian activities. The results of the analyses support the non-separability hypothesis of non-farm activities and household income; this implies that engaging in non-agricultural activities has a direct positive effect on household income. The omnipresence of non-agrarian income generating activities in agro-ecoregions requires inclusive rural development policies that focus beyond agriculture based on the recognition of the rural economic heterogeneity. Key words: Rural development, non-farm activities, household income, Heckman Two-Step model, Ethiopia.

Highlights

The United Nations‟ Millennium Development Goals (MDGs) of eradicating extreme poverty and making assuage hunger by 2015 represent global mobilization to attain Sustainable Development in a short run
This study further suggested that high level of education facilitates the access to higher pay-offs of nonfarm employment
In developing countries like Ethiopia, rapid population growth, degradation of biodiversity, climatic emergency, remoteness of rural areas, poor infrastructure, inadequate access to production inputs, and lack of mechanization accelerate loss of productive assets, exacerbate spikes in food prices and confine agriculture potential to provide sustainable livelihoods. This situation further handicaps the attainment of the Sustainable Development Goals (SDGs) to eradicate poverty and hunger

Summary

Introduction

The United Nations‟ Millennium Development Goals (MDGs) of eradicating extreme poverty and making assuage hunger by 2015 represent global mobilization to attain Sustainable Development in a short run. Many countries like Ethiopia are still far from actualizing both “No Poverty” and “Zero Hunger” objectives. Ethiopia is one of the low-income countries in the world. The country‟s Human Development Index is 0.424 and 0.501 for female and male, respectively. Poverty is substantially a rural phenomenon in Ethiopia.

Methods

Results

Conclusion