Diversification Of Income Sources Research Articles

Welfare impacts of public works in fragile and conflict affected economies: The Londö public works in the Central African Republic

Workfare programs are a widely used but costly means through which many developing countries provide income generating opportunities for the poor and mitigate adverse impacts from shocks, including conflict and violence. We evaluate the Londö public works program in the Central African Republic, where more than 70 percent of the population is estimated to live below the poverty line and armed groups control large parts of the territory. Our evaluation design leverages the random assignment of eligibility to participate in the program through publicly held lotteries. Comparing those who are eligible with those who are not 2 to 18 months after the intervention using cross-sectional data from more than 6,000 respondents, we find that the program led to a lasting increase of around 10 percent in post-intervention monthly earnings and a small increase on number of days worked. The response to the program was highly gendered. Female beneficiaries diversified income sources and engaged more often in trading whereas men intensified agricultural production. We also document an increase in certain asset categories that mirror the gendered impacts on economic activity, as well as higher levels of happiness and satisfaction among beneficiaries. We do not find a strong link between program participation and variables that are proxies for social cohesion.

Determinants of the Implementation of Agroecological Practices among Smallholder Farmers in Singida District, Tanzania

Agroecological farming is considered to be among the suitable approach toward sustainable food systems and environmental conservation. Characteristically agroecology is at low cost as it does not depend on expensive external inputs. Similar to other forms of more sustainable agriculture, implementation of its practices is generally low. There is scant information regarding the causes for its low implementation. This paper, therefore, looks into the determinants of the implementation of agroecological practices among smallholder farmers in Singida District, Tanzania. Specifically, the study uses data from household survey, focus group discussions, and key informants’ interviews. The study employed both descriptive and inferential analysis to establish determinants of the adoption of agroecological practices. A multiple linear regression model was employed to analyze the factors for decision to use agroecological practices, using a cross-sectional data from 160 randomly selected households. Thematic analysis was used to analyze qualitative data. The study findings indicate that the dominant agroecological practices are the application of organic fertilizers (such as farm yard manure, composite and green manure), intercropping, and crop rotation. The results, also show income, education level of the household head, distance from homestead to the farm, training on agroecology and land ownership were found to be associated with the implementation decision of agroecological practices by farming households. Besides, about 75% of farmers who decide to implement agroecology practices were those who access to training supports from FRN project. Based on the study findings, The Government and other stakeholders should insist more on improving training services to increase the implementation of agroecological practices. Also, the study recommends diversification of income sources on the farmers’ side by engaging in both on-farm and off-farm activities such as petty business to increase income which in turn will enable them to invest in the implementation of agroecology practices.

Management Accounting System in the Management of an Intelligent Energy Sector Enterprise

The aim of the article was to assess the implementation of the management accounting tools in managing an intelligent energy sector enterprise. The energy industry, characterized by high price fluctuation, rising costs, and the development of modern technologies, will in the future look for diversified sources of income and changes in business models. Energy entities will move towards intelligent management using management accounting tools, providing access to complete and up-to-date information from internal and external sources and extended management capabilities. In order to obtain answers to the questions, we conducted standardized interviews and an in-depth interview (IDI—individual in-depth interview) with large enterprises, with particular emphasis on the case of Hager Polo Ltd.

COVID-19 Impact on Church Cash Inflows in Ghana as Moderated by Location Profile

The corona virus (COVID-19) pandemic brought both negative and positive impacts on all sectors of world economies since its inception in the early 2020s. Profit and not-for-profit institutions have had their levels of effects as a result of the world-wide crises. Lockdown measures imposed by governments around the world to curb the spread of the virus had various repercussions on various activities, including churches. Effects of the pandemic on businesses, education, agriculture and tourism, among others, have received massive highlights in literature. Given this phenomenon, this study sought to ascertain the impact of COVID-19 on church cash inflows. The study used quantitative research approach. Research instrument consisted of self-constructed questionnaire. The study made use of descriptive correlational design. Data collected from Unions and Conferences of the Seventh-day Adventist Church in Ghana were statistically analyzed. Results showed positive significant impact of COVID-19 on church cash inflows. There was significant moderating effect of location profile on church cash inflows during the period of the pandemic. The findings have implications for diversification of income sources through church projects to achieve stable to moderate cash inflows in the events of unpredictable new normal. This study concludes that the longevity of the pandemic will continually cause church cash inflows to decline.

Determinants of livelihood diversification in rural rain-fed region of Pakistan: evidence from fractional multinomial logit (FMLOGIT) estimation

Sustainable livelihoods in less developed countries are threatened by human, natural, physical, social and financial factors. Pakistan is also facing severe negative impacts of these factors in the form of climate shocks, market imperfections and insufficient formal credit availability on rural livelihoods. This study explores rural Pakistani’s adaptation to these threats by diversifying income sources and explores the determining factors for adopting specific livelihood diversification strategies. The study is based on a quantitative survey of 295 households in three districts of rain-fed rural regions of Pakistan’s Punjab with differing annual rainfall. Results showed that households mitigated against threats to their livelihood by having a diversity of income sources (Simpson Diversity Index = 0.61). Moreover, fractional multinomial regression modelling revealed that greater education was associated with a more diversified livelihood strategy, where income was predominantly derived from off-farm and non-farm livelihood activities. On the other hand, households with older members, more livestock and larger farm size focused their livelihoods on their own farms, or primarily diversified into an off-farm strategy by working on other farms. These findings underscore the importance of improved access to education and infrastructure for livelihood diversification. A policy that focuses on reducing low literacy rates in rural Pakistan may also provide new avenues of livelihood diversifications with enhancement of rural literacy rate to mitigate the risks associated with livelihood strategies of smallholders.

Determinants of smallholder farmers’ livelihood trajectories. Evidence from rural Malawi

ABSTRACT This paper examines the determinants of livelihood trajectories of households surveyed in rural Malawi in 2007 that were tracked in 2018. Using a set of indicators, including income source diversification and participation in social assistance programmes, households were placed in different trajectories, namely, dropping out, stepping up, hanging in and stepping in. A multinomial logit model was used to analyse factors explaining placement in a livelihood trajectory. We find that the explanatory factors are not the same for farmers in different pathways. The stepping-up of households is likely with increasing commercialization and significant asset accumulation. Furthermore, the stepping-in trajectory is constrained by initial land holding sizes but is more likely if a household has had experience with the cultivation of several different kinds of crops. We find that crop diversification reduces the chance of dropping out but also increases the possibility of hanging in, implying that the blanket recommendation to farmers to diversify crop production may not attain the same benefits to all farmers. This may well be complemented with useful extension services, especially for young farming households. Overall, the study findings point to the complexity and the need for context-dependent development approaches to provide sustainable escapes from poverty.

Factors Influencing the Sustained Adoption of Innovative Techniques by Urban Farmers in Lubumbashi, Democratic Republic of Congo

A package of innovations was disseminated in urban agriculture and created real opportunities for employment, income, and the supply of vegetables of high nutritional quality. However, ten years later, farmers are working for a daily income of less than United State Dollars 1.25, and critical exceedances of heavy metal content standards in crops are recorded. Survey data collected from 202 farmers were used to identify, via the Logit model, the factors influencing the sustained adoption of the of two contrasting innovations of the package. The results of the exploratory survey of 537 farmers showed that 2.42% owned a motor pump, while the in-depth survey revealed that 25.2% of the 202 respondents were using motor pumps at the time of the survey. A total of 74.8% watered with buckets and watering cans. The high cost of the motor pump makes it inaccessible to farmers. Some tried to circumvent this constraint, which led to group purchases. Integrated soil fertility management was used by 58.4% of respondents. In total, 41.6% applied only chemical fertilizers. However, Integrated soil fertility management has been hampered by farmers’ difficulties in accessing organic matter. The results of the Logit model revealed that no socio-demographic factors were significant for sustained adoption of the motor pump. They were relevant, rather, for integrated soil fertility management, where a single factor (mutual aid) appeared to play a role, albeit a moderate one. Economic factors such as land tenure status and diversification of income sources were significant for a sustained adoption of the motor pump. In contrast, no economic factors were significant for a sustained adoption of the integrated soil fertility management. Institutional factors such as access to credit and membership in an association were significant for sustained adoption of the two of innovations studied. A series of avenues to follow to improve the productivity of farms is proposed. We suggest an in-depth study of the mutual aid practiced by 86.1% of the farmers. The results of this study can be taken into account in research and policy aimed at improving adoption of innovative techniques that are beneficial to farmers in developing countries.

Perception and Adaptation Strategies of Smallholder Farmers to Drought Risk: A Scientometric Analysis

Droughts are a worldwide issue that affects ecosystems’ economies and cultures; therefore, its perception and adaptation strategies among smallholder farmers are crucial for the mitigation of drought risk, and for sustainable food production. We used the bibliometric method to analyze 121 publications from the Scopus database to better understand the existing situation and trends in the field of drought risk. During the years under consideration, the field saw a significant increase in publication output, with an annual growth rate of roughly 68.14 percent. On a national level, the United States scored first with the most publications and the most academic influence, with the majority of top papers citations coming from USA-connected universities and research centers. The top five most frequently used keywords and keyword-plus were, drought, adaptation, agriculture, smallholder farmers, and climate change. Some of the adaptation strategies adopted by smallholder farmers, which could be used by many nations to deal with drought events, include: rainwater harvesting, diversification of income sources, planting of short-season cash crops to enhance cash flow, use of drought-tolerance herds, etc. This research offers a plan to navigate the intellectual dilemma in drought risk research and offers guidance for researchers in all continents, particularly the Africans and the Europeans, in further studies in this area, as the agricultural sector contributes significantly to the economy of many nations.

Payments for environmental services and coffee production in Colombia: Technical efficiency across the world heritage status borders

The breakdown of the Coffee Agreement from the International Coffee Organization in 1989 led to instability of prices in the world coffee market. Uncertainty pushed coffee producers to search for diversified income sources. With land-use change threatening environmental sustainability, UNESCO included the Colombian Coffee Cultural Landscape in the World Heritage (WH) List in 2011 to protect the coffee regions. Also, the government and private firms supported coffee producers with payments for environmental services (PES). This study explores the extent to which PES can affect coffee producers' performance at the Coffee Cultural Landscape using stochastic frontier analysis. The survey data used allowed us to analyze 385 coffee producers around the Andes for the cropping year 2017. The location of each farmer was recorded by GPS. The paper found that the combination of both receiving PES and located within the WH increases efficiency, while the presence of only one of the PES or WH is associated with lower technical efficiency. In general, farms with PES found to be more efficient than farms without PES. While farms outside of WH without PES exhibit higher technical efficiency than farms inside of WH without PES. Both WH status and PES schemes can support policies oriented to economic, environmental and social development.

Alangan Mangyans’ Household Coping Strategy During Food Shortage in Occidental Mindoro, Philippines

The study was conducted to determine the household coping strategy employed by the Alangan Mangyans during food shortage in Sablayan & Sta Cruz, Occidental Mindoro, Philippines. The study employed a descriptive design. The research instrument used were the Radimer/Cornell Hunger and Food Insecurity Instrument and Coping Strategy Index (CSI). The Alangans are middle-aged with an average age of 41 years old. They have medium average household sizes of five persons per household, had only reached lower secondary education. They experienced “food insecure without hunger,” which resulted to employing dietary change. The Alangan Mangyan households are considered poor due to low agricultural production and lack of diversified sources of income which resulted in the adequate food supply in the household. The low agricultural production is the “highly serious problem” related to food security because of this, they change their diet relying on less preferred plant food sources and cheaper instant foods readily available in the community.

Resiliency of livelihood and empowerment of women: Results of a cash-based intervention in Bangladesh's Lalmonirhat District

Almost every year, the north-western part of Bangladesh faces acute flash floods causing property damage and loss of livelihood. The 2017 flood severely affected Lalmonirhat District, where in 2019 several organizations provided cash incentives as an aid to recovery of livelihoods and empowerment of women. This study explores the use of cash-based intervention (CBI) for livelihood restoration and empowerment of women. A qualitative exploratory research design was employed using a questionnaire survey, focus group discussions and semi-structured interviews. Due to COVID-19, a follow-up phone survey was conducted in July 2020, revealing that CBI led to diversified income sources. The average inflation-adjusted income for beneficiaries was BDT17442 per month. About 52% of respondents believed CBI was highly effective, while 44% found CBI moderately helpful. In only 2% of cases was it fruitless due to the death of cattle. The daily income increased by BDT83-227 for Cluster-A (50% of respondents), BDT228-371 for Cluster-B (42% of respondents), and BDT372-517 for Cluster-C (8% of respondents). Among other occupations, livestock rearing made a significant profit, specifically for those who received minimal monetary CBI support. Following CBI and training, 100% of female respondents opined that males and females should have equal rights. About 93% of female respondents found improvement in self-confidence, self-esteem, and decision-making capacity attributable to participation in training and meetings to which they did not have access previously. About 93% of females felt that after empowerment training, they were able to reduce incidents of domestic violence. They enjoyed greater freedom in household and social decisions, greater independence in income, and improved equality in attitudes. CBI could be implemented on a large scale in disaster-affected communities to recover livelihoods, increase income sources, engage women in the workforce, and empower women.

Factors Affecting Risk Attitude of Rice Farmers: Evidence from Vietnam’s Mekong Delta

Agricultural production accounts for 64.2% of the Vietnam’s Mekong Delta. However, this sector has to face damage risks, especially from the natural disasters, such as flood, drought, severe soil salinity, pests, and erosion, which might factor into the farmers’ risk attitude and their decision-making relative to investment in production activities. This study analyzes the factors influencing the risk attitudes of the rice farmers, based on evidence from the Vietnamese Mekong Delta. The data were collected through face-to-face interviews and experimental games with 145 rice farmers. An ordered probit regression model was applied to estimate how the factors affected the rice farmers’ risk attitudes. The risk-neutral farmers comprised 53.72% of farmers in the survey, while 31.72% and 15.15% were risk-preferred and risk-averse farmers. The study results indicated that age, number of rice crops per year, household assets, income from rice production, and credit accessibility were the main factors affecting the farmers’ risk attitudes. The results suggest that the financial incentives’ policies to compensate for losses in uncertain conditions and increase the household income, diversification of income sources, and improving the accessibility of formal credit might be useful to increase farmers’ willingness to accept the risks of investing in better profitability projects and gaining a higher income.

Transformation of University Models: Analysis of the Development Strategies of Universities in the World

The paper presents an analysis of the key characteristics of the typological models of modern universities and outlines the directions of their transformation. The concept of University 3.0 was used as a research methodology in view of the existing approaches to the classification of university models. The research method was the qualitative analysis of the strategic development documents of the various universities of the world posted on their websites. The selection of the universities for analysis was carried out on the basis of the results of the QS WUR 2022 ranking. The sample was made up of 30 universities from North America, Europe, Asia, and Russia, occupying various ranking positions. As a result, there were revealed the features of the strategic priorities for the development of Russian and foreign universities, as well as universities aimed at global and regional influence. A set of basic characteristics of typological models of universities 1.0-4.0 has been developed. It has been established that the transformation of these models takes place in the direction of increasing the scope of their mission, expanding the areas of activity, using new digital technologies, developing integration potential and strengthening the impact on society. The defining parameters for the formation of the model of the university of the future are focus on innovation and advanced continuous education, managed broad integration, diversification of income sources, social involvement and contribution to sustainable development. The presented complex of the main characteristics of typological models of universities can serve as a tool for assessing the compliance of a particular university with a particular model, as well as contribute to goal-setting in the development of the national higher education system and particular universities.

Determinants and Preferences of Credit Risk Management in Farming: Evidence from Rice Enterprise in Nigeria

Background: This research was conducted in Enugu State. Nigeria is motivated by the fact that small scale rice farmers in Nigeria are faced with severe credit risk. This has increased their instability in productivity and resulted in high loan default. A multiplicity of research in Nigeria has neglected the aspect of credit risk management, especially in crop farming. The study explores the determinants and preferences of credit risk management in rice farming in Nigeria. Methods: A multi-stage sampling technique was used to select the respondents for the study. Specifically, a random sampling technique was used to select 10 crop farmers from eight selected communities, which gave 80 respondents for the study. However, after data cleaning and other exercises of data editing, 75 questionnaire were collected and used for the analysis. Finally, in the selection of financial institutions, a purposive sampling technique was used to 16 formal financial institutions that had operated for more than ten years in each of the selected local government areas. Result: The study identified that credit risk management is affected by education, diversification of income sources, farming experience, banking with commercial banks and informal financial institutions, amount of credit and experience in the past credit risks. In addition, the preference of rice farmers to credit risk aversion is appropriate management of production risks, price risks and moratorium risk.

Perception of transhumant herders on climate change and their adaptation strategies

Climate change is becoming one of the greatest challenges of our times questioning the survival of humanity and the coexistence of biodiversity. Its impact is realized globally in aspects of climate-induced disasters, water stresses, rangeland, agricultural, and food production. This case study confers the extent and impact of climate change on transhumant herders along with their coping strategies in Lho and Sirdibas of Chumnurbi Rural Municipality, Gorkha. Focus group discussion, key informant interview, and questionnaire survey were carried out in two wards covering herder's perception towards various climatic variability, impacts on transhumance system, and adaptation strategies undertaken for resilience. Data were analyzed using descriptive, inferential statistics and GIS such as percentage, frequency, weighted mean, index of relative ranking, Chi-square test, Normalized Difference Vegetation Index (NDVI), Normalized Difference Snow Index (NDSI), etc. were presented in figures and charts. This study showed that temperature is rising and precipitation is falling in the rural mountainous areas along with a decrease in snow cover and an increase in vegetation cover over a period of time. Seasonal movement of livestock is mainly guided by the search of forage resources and for adjusting the temperature. The impacts such as the decrease in pasture resources, increase in drought, decrease in agricultural production, etc. were perceived by the herders. Adaptation strategies such as the seasonal movement of livestock, diversification of income sources, and grazing resources were most noticed. Most of them were autonomous based on indigenous knowledge and innovation. The study recommends that the perceived changes and possible impacts of climate change to the transhumance systems need to be monitored scientifically over time. Further, more programs and policies should be developed for the resilience of the community.

Adoption and Cost-benefit Analysis of Drip Irrigation for Production of High-Value Crops in Pakistan

Drip irrigation is regarded as one of the highly efficient methods that allow limited water resources to be properly utilized. The study has been conducted to perform the economic analysis of low and high head drip irrigation systems throughout the country based on data from 100 adopters of drip irrigation through a research & development project funded by the International Center for Agricultural Research in the Dry Areas (ICARDA-Pakistan)/United States Department of Agriculture (USDA). A field survey for the study was conducted in the year 2018 in all the provinces of Pakistan. The study revealed that technology is generally adopted by the farmers having diversified income sources and medium-sized land holdings i.e. ranging from 12.5 to 25 acres. System installation cost-shared 11 percent in low-head drip system of the annual production cost of fruits. While, it shared 29, 32, and 27 percent in case of a high-head system for grapes orchards, vegetables in tunnels, and open fields, respectively. Low-head drip irrigation is profitable for dates/ lemon orchards in Khyber Pakhtunkhwa with a benefit-cost ratio (BCR) of 1.27:1.00. It results in considerable profitability for grapes orchards with BCR of 1.73:1.00 and 1.32:100 in Punjab and Balochistan provinces, respectively. The low-head system is also beneficial for mixed fruit orchards in rain-fed Punjab with a BCR of 1.24:1.00. Similarly, for high-head systems, the benefit-cost ratio was the highest for grapes produced in rain-fed Punjab (2.62:1.00), followed by squash-gourd in irrigated Sindh (2.17:1.00) bitter-gourd in rain-fed Punjab (1.50:1.00) and okra in Sindh (1.22:1.00). However, low and high-head systems could not result in considerable returns for farmers in the case of mixed fruits in Balochistan and cucumber production in tunnels in Punjab province during the study year.

Rural households’ attitude to diversification into non-farm enterprises in Katsina State, Nigeria

The study investigated the rural households’ attitude to diversification into non-farm enterprises in Katsina State, Nigeria. A multistage sampling procedure was used to select 256 farmers for the study. Data were obtained with the aid of questionnaire and analyzed using percentage and regression analysis. The most positive attitude was “that non-farm enterprise is a crucial pathway to food security for rural households”. It was closely followed by “non-farm enterprise is a source of agricultural household savings used for food purchase in hard times” and “non-farm enterprise provides a means to cope or survive when farming fails”. Farmers expressed positive attitude to diversification into non-farm enterprises and do not depend on agriculture as a sole means of livelihood but diversified income sources; the diversified farmers had higher income level. Government should support the existing non-farm enterprises and encourage creation of new ones; also improve formal credit access. Furthermore, technical support and skills acquisition training programs should be provided to enhance the performance and efficiency of non-farm enterprises in rural areas.

Dynamics of Income Diversification, Profitability, and Risk: Analysis of Public and Private Sector Banks in India

“Do not put all eggs in one basket.” This risk management principle applies to every other industry whether it be manufacturing or banking. Interest income is believed to be a bank's primary source of income. Banks diversify their operations to generate non-interest income and lower their total risk exposure. Applying panel-data regression, the study analyzes and compares the intensity of diversification of income sources between public and private sector banks in India, using secondary data for Indian financial years 2012-13 to 2020-21. It utilizes RAROA and Z-Score to examine the impact of income diversification on profitability and risk, respectively. It discovered that private banks are more diversified than public banks. With low levels of diversification, public banks had a positive impact on profitability and risk. This is evident from research that banks leverage income diversification as a tool to fight COVID-19 backed slowdown.

Impact of Conservation Policies on Households’ Deforestation Decisions in Protected and Open-Access Forests: Cases of Moribane Forest Reserve and Serra Chôa, Mozambique

Tropical deforestation is considered a global priority due to its environmental, social, and economic impacts at international, national, and household levels. Conservation policies constitute one of the pathways to reverse this scenario. This paper examines the influence of forest protection measures on local communities’ livelihood decisions regarding forest clearing. It compares deforestation, access to forest resources, and households’ strategies in protected and open-access forests: the Moribane Forest Reserve (MFR) and Serra Chôa (SCH), two environmentally sensitive areas with different conservation statuses in Manica Province, central Mozambique. Socioeconomic data were collected from September 2019 to August 2020 in 149 households in MFR and 144 households in SCH. The data were cross-examined with spatial information on deforestation from 2000 to 2020. We found that conservation status impacted household strategies, leading to less income source diversification and limited commercialization of forest products. In both areas, most respondents declared unlimited access to forest resources (89.9% for MFR and 68.8% for SCH), and the remaining proportion of respondents pointed out conservation, private forest, distance, and wildlife conflict as reasons for limited access. Shifting agriculture is the unique income source for 75.2% of the families in MFR and 28.4% in SCH. Most households in SCH diversify their income by combining shifting agriculture and livestock (68.75% against 24.8% in MFR). About 97% of the sampled households in MFR cleared forest for agriculture during the period 2000–2020, while 55.6% of the households cleared the forest in SCH during the same period. In MFR, non-timber forest products are mainly for subsistence use, except honey, which is sold by 52.2% of families. In SCH, commercialization of non-timber forest products is more diverse, with 11.1% of families selling honey, bush meat (5.5%), charcoal (3.4%), medicinal plants (2%), wood (1.3%), poles (11.1%), and firewood (12.5%). We conclude that the current conservation policies have little impact on household decisions to protect the forest, but they influence income diversification, leading to more dependency on agriculture and livestock.

The Contribution of Forest Extraction to Income Diversification and Poverty Alleviation for Indonesian Smallholder Cattle Breeders

Smallholder farmers in developing countries often lack resources. They rely mostly on extensive production approaches, such as cattle keeping and resort more to extracting forest resources at no charge. Our objective is to assess the relationship between the diversification of income sources, poverty and livelihood capital for smallholder farm households which combine cattle farming with forest extraction. We collected 600 surveys from Indonesian farmers specialized along the cattle rearing supply chain (464 breeders, 66 feeders and 70 mixed breeder-feeders). We found no correlation between poverty and income diversification. Cattle breeders have been found to rely most on forest resources. Distance to cropland and forest correlated positively, whereas their education level correlated negatively with income diversification. Feeders who were owning other livestock, were a member of a forest user group and owned some modest capital like a motorbike showed increased income diversification. Crops are the most important source of income for farmers, whereas cattle keeping and forest extraction play a role in income diversification. Increasing ecological pressure caused by forest extraction due to expanding cattle production could be best avoided by extending those parts of the cattle sector that use forest resources in a sustainable manner, for instance, through silvopastural systems or agroforestry so that incomes of poor farmers get more diversified and, therefore stabilized.