Abstract
This study investigated the factors that influence the choice of livelihood strategies in rural areas of households in Limmu District, eastern Wollega zone of Oromiya regional state, Ethiopia. 292 householdsā were selected using multi stages random and purposive sampling technique. A Multinomial logit regression model was applied to identify the determinants of agricultural diversification strategies in the area. Out of the total sample household heads about 46% of the total household income was derived from on farm only, 30% from a combination of on farm and nonfarm, about 12.33% from a combination of on farm, non-farm and off-farm and 12% from a combination of on farm and off-farm activities. The multinomial logit regression analysis revealed that education level, access to credit, access to mass media, dependency ratio, access to irrigation, urban linkage, climate change, extension contact and distance to the nearest road were theoretically consistent and statistically significant effect to the likelihood choice of diversification strategies. Whereas, age of household head, sex, distance to the market, cooperative membership, crop risk and distance from market were insignificant predictor of diversification strategy at 5% significance level. The findings of the study suggest that efforts should focus on the promotion of options, substitution between assets and activities to diversify household specific agriculture-linkage with non-farm and off farm diversification rather than focusing on the single agricultural productive farm by taking action to improve information, mobility and asset accumulation. Keywords: Multinomial Logit, Limmu, Livelihood diversification, on farm, off-farm, non-farm DOI: 10.7176/JESD/12-13-03 Publication date: July 31 st 2021
Highlights
Agriculture accounts for 67% of employment, 39.4% of national gross domestic product, and 43% of export goods (FAO, 2015)
Among the total sampled household heads 38.36% were obtained from Degem Sillasie Kebele, 10.62% from Gaba Kamisa and the remaining 51.03% were from Arkumbe district
The results show that multinomial logit regression model for four levels of livelihood diversification strategies such as on farm only, on plus none farm, on plus off farm, and on plus off plus nonfarm with on farm only diversification strategy as a reference category were predicted
Summary
Agriculture accounts for 67% of employment, 39.4% of national gross domestic product, and 43% of export goods (FAO, 2015). Livelihood diversification is a process by which rural households construct a diverse portfolio of activities and social support capabilities in their struggle for survival and improvement in their standards of living (Ellis F., 2000) and the means of gaining a living (Chambers JK., 1995). It can be defined as the maintenance and continuous alteration of highly varied range of activities and occupations to minimize household income variability, reduce the adverse impacts of seasonality, and provide employment or additional income (Ellis F., 2000; Barrett CB, 2001; Alobo Loison S., 2015). It can be defined as the maintenance and continuous alteration of highly varied range of activities and occupations to minimize household income variability, reduce the adverse impacts of seasonality, and provide employment or additional income (Ellis F., 2000; Barrett CB, 2001; Alobo Loison S., 2015). Ahmed et al (2015) reported that the livelihood of rural Bangladesh mainly consists of farm activities with few non-farm activities
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
