Factors Affecting Livelihood Diversification Decision: The Case of Kuormuk and Homosha Districts of Assosa Zone, Beneshangul Gumuz Regional State, Ethiopia

Amente Negussa Bayata,Tewodros Adane Nega

doi:10.11648/j.ajpb.20200503.16

Abstract

Ethiopia’s agricultural productivity is considered low despite the presence of various agricultural policies. These policies focus mainly on on-farm agricultural development to the neglect of rich opportunities for non-agricultural livelihood diversification activities. Livelihood diversification is a strategy that can boost farmers’ income and promote sustainable land management practices. This study was conducted to assess the various factors that affect households’ decisions on livelihood diversifications the case of Kuormuk and Homosha districts of Assosa zone, Beneshangul Gumuz regional state, western Ethiopia. Data was gathered by household survey from 376 sample households of 13 randomly selected rural kebeles of the Homosha and Kuormuk Districts through structural questionnaires. The alternative livelihood strategies that were used by the study households were agriculture only, and agriculture plus other activities (off-farm and non-farm activities). Binary Logit model was employed in identifying the determinants of rural livelihood diversification decision. From 13 hypothesized explanatory variables, 5 variables were found to have significant effect in determining diversification of household livelihood decisions. Accordingly, age of the household head, access to credit, receiving remittance and land size have negative association with livelihood diversification strategy. Whereas, getting training has a positively influence on households choice of livelihood diversification. Therefore, the findings of this imply that rural households’ development policies should consider off-farm and non-farm livelihood activities in addition to agriculture.

Highlights

Age of the household head in year Sex of the household head; dummy (1 if male; 0=female) Education of the Household head dummy (1 if literate; 0=illiterate) The family size of household head. economically active family members (EAFM) were >14 and
This is one of the household characteristics that are important to describe the households working age. This is supported by review report on the average age of the household heads in the in Ethiopian smallholder farmers are ranged from 39.7 to 51.9 years, and it is within the range of the productive age
K2 According to the Binary logistic regression result, out of 13 variables included in the model, 5 explanatory variables are found to be significant with respect to the likelihood of household’s livelihood diversification decision

Summary

Introduction

Ethiopian agriculture accounts about 42 percent of the GDP, employs about 85 percent of the employment. The central Statistical Agency has been conducting and providing agricultural statistical census by the year 2001/02 and has planned to conduct the second one by 2018/19 [1]. The agricultural sector plays an important role in the national economy, livelihood and socio-cultural system of the country. The sector supports employment of over 80% of the population and accounts for 45 to 50% of the national GDP. Diversification of income sources, assets, and occupations is the norm for individuals or households in different economies, but for different reasons [2]

Methods

Results

Conclusion