Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia

Tamrat Gebiso Challa; Ashebir Tsegaye Mamo; Aman Nebo Tibeso; Ibsa Dawud

doi:doi:10.11648/j.ijber.20190801.14

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Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia

Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud

Published in International Journal of Business and Economics Research (Volume 8, Issue 1)

Received: 12 December 2018 Accepted: 31 January 2019 Published: 1 March 2019

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Abstract

The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 1)
DOI	10.11648/j.ijber.20190801.14
Page(s)	23-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Livelihood, Diversification, Nonfarm/off-Farm Income, Negative Binomial Model, Simpson Diversification Index, Double-Hurdle Model

References

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APA Style

Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud. (2019). Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. International Journal of Business and Economics Research, 8(1), 23-30. https://doi.org/10.11648/j.ijber.20190801.14

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ACS Style

Tamrat Gebiso Challa; Ashebir Tsegaye Mamo; Aman Nebo Tibeso; Ibsa Dawud. Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. Int. J. Bus. Econ. Res. 2019, 8(1), 23-30. doi: 10.11648/j.ijber.20190801.14

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AMA Style

Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud. Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. Int J Bus Econ Res. 2019;8(1):23-30. doi: 10.11648/j.ijber.20190801.14

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@article{10.11648/j.ijber.20190801.14,
  author = {Tamrat Gebiso Challa and Ashebir Tsegaye Mamo and Aman Nebo Tibeso and Ibsa Dawud},
  title = {Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {1},
  pages = {23-30},
  doi = {10.11648/j.ijber.20190801.14},
  url = {https://doi.org/10.11648/j.ijber.20190801.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190801.14},
  abstract = {The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.},
 year = {2019}
}

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TY  - JOUR
T1  - Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia
AU  - Tamrat Gebiso Challa
AU  - Ashebir Tsegaye Mamo
AU  - Aman Nebo Tibeso
AU  - Ibsa Dawud
Y1  - 2019/03/01
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190801.14
DO  - 10.11648/j.ijber.20190801.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 23
EP  - 30
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190801.14
AB  - The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.
VL  - 8
IS  - 1
ER  -

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Author Information

Tamrat Gebiso Challa

Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Ashebir Tsegaye Mamo

Agricultural Engineering Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Aman Nebo Tibeso

Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia
Ibsa Dawud

Agricultural Economics and Agricultural Extension Directorate, Oromia Agricultural Research Institute, Asella, Ethiopia

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APA Style

Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud. (2019). Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. International Journal of Business and Economics Research, 8(1), 23-30. https://doi.org/10.11648/j.ijber.20190801.14

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ACS Style

Tamrat Gebiso Challa; Ashebir Tsegaye Mamo; Aman Nebo Tibeso; Ibsa Dawud. Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. Int. J. Bus. Econ. Res. 2019, 8(1), 23-30. doi: 10.11648/j.ijber.20190801.14

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AMA Style

Tamrat Gebiso Challa, Ashebir Tsegaye Mamo, Aman Nebo Tibeso, Ibsa Dawud. Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia. Int J Bus Econ Res. 2019;8(1):23-30. doi: 10.11648/j.ijber.20190801.14

Copy | Download

@article{10.11648/j.ijber.20190801.14,
  author = {Tamrat Gebiso Challa and Ashebir Tsegaye Mamo and Aman Nebo Tibeso and Ibsa Dawud},
  title = {Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {1},
  pages = {23-30},
  doi = {10.11648/j.ijber.20190801.14},
  url = {https://doi.org/10.11648/j.ijber.20190801.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190801.14},
  abstract = {The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.},
 year = {2019}
}

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TY  - JOUR
T1  - Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia
AU  - Tamrat Gebiso Challa
AU  - Ashebir Tsegaye Mamo
AU  - Aman Nebo Tibeso
AU  - Ibsa Dawud
Y1  - 2019/03/01
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190801.14
DO  - 10.11648/j.ijber.20190801.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 23
EP  - 30
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190801.14
AB  - The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.
VL  - 8
IS  - 1
ER  -

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