Livelihood Assets and Outcomes of Rural Farm Households in Central Khyber Pakhtunkhwa of Pakistan

Abstract

This study explores the factors of livelihood assets possessed by small farm households in Central Khyber Pakhtunkhwa of Pakistan that determines the livelihood outcomes using sustainable livelihood framework. Primary data were collected from 349 small farm households using well-structured pre-tested questionnaire having both closed and open-ended questions. The study first measured the livelihood assets worth through composite indices followed by the factors that influencing the livelihood outcomes using multiple regression model. The overall value of livelihood assets of small farm households in the study area was 0.297. The area small farmers were lacked in livelihood assets along with low level of living standards as well as economic development in the area. The empirical findings of regression model revealed that all the five capitals of livelihood asset had significant positive effect on livelihood outcomes. Additionally, household active labour and education of labor earners of human capital, family land of natural capital; livestock and access to formal financial credit of financial capital, distance to public services of physical capital and membership in MFSCs, access to service providers of social capital had significant positive effect on the livelihood outcomes. The study suggests that the livelihood asset should be upgraded in all capitals followed by changing the approach of agriculture departments and other allied stakeholders for developing agriculture sector and rural economy.