Rural Income Diversification In Ethiopia

Author : Abate, Gashaw Tadesse,Bachewe, Fantu Nisrane,Regassa, Mekdim,Minot, Nicholas
Publisher : Intl Food Policy Res Inst
Page : 5 pages
File Size : 47,9 Mb
Release : 2022-12-06
Category : Political Science
ISBN : 8210379456XXX

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Rural income diversification in Ethiopia: Patterns, trends, and welfare impacts by Abate, Gashaw Tadesse,Bachewe, Fantu Nisrane,Regassa, Mekdim,Minot, Nicholas Pdf

Increased diversification of rural households into the rural non-farm economy is an important driver of economic growth and structural transformation in countries like Ethiopia where most people live in rural areas and are largely dependent on seasonal agriculture. In this study, we explore the patterns and trends of diversification and assess its drivers and welfare effects during the recent decade (2012 – 2019) using three rounds of representative household data collected from four major regions in Ethiopia. Our results show that sample households generally adopt a livelihood strategy dominated by farming and that the level of diversification has been stagnant over the period of analysis considered. More importantly, most households continue to draw a substantial share of their income from crop production, followed by livestock. The income from non-farm activities accounts only between 17-23% of the total household income. Upon exploring the link between diversification and welfare outcomes, we find that households with relatively diversified income sources have significantly higher consumption expenditure per capita, consume diverse diets, and live in house with better roof quality. Further analyses reveal that income diversification is positively associated with credit access, membership in social insurance, ownership of assets and wealth, and population density. Conversely, access to relatively large, fertile, and irrigable land discourages diversification. In sum, the results imply the need for a deliberate effort to expand the non-farm economy to tap its full potential for employment generation, income growth, and overall welfare improvements.

Author : Gashaw Tadesse Abate,Fantu Bachewe,Mekdim Dereje Regassa,Nicholas W. Minot
Publisher : Unknown
Page : 0 pages
File Size : 50,6 Mb
Release : 2022
Category : Electronic
ISBN : OCLC:1384421826

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Rural Income Diversification in Ethiopia by Gashaw Tadesse Abate,Fantu Bachewe,Mekdim Dereje Regassa,Nicholas W. Minot Pdf

Author : Bachewe, Fantu Nisrane,Berhane, Guush,Minten, Bart,Taffesse, Alemayehu Seyoum
Publisher : Intl Food Policy Res Inst
Page : 34 pages
File Size : 49,9 Mb
Release : 2016-06-07
Category : Political Science
ISBN : 8210379456XXX

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Non-farm income and labor markets in rural Ethiopia by Bachewe, Fantu Nisrane,Berhane, Guush,Minten, Bart,Taffesse, Alemayehu Seyoum Pdf

Ethiopia’s economy is rapidly transforming. However, the extent to which this is affecting off-farm income and labor markets in rural areas is not well understood. Based on a large-scale household survey in high potential agricultural areas, we find that total off-farm income (defined as wage and enterprise income) makes up 18 percent of total rural income. Wage income in both the agricultural and non-agricultural sectors accounts for 10 percent of total household income, equating in importance to livestock income. We show off-farm income and wage income to be relatively more important for the poor and female and youth-headed households. We further find that real rural wages increased by 54 percent over the last decade, mostly driven by high agricultural growth. While this wage increase is good news for the poor, it also induces adjustments in agricultural production practices, including increased adoption of labor-substituting technologies such as herbicides and mechanization. However, it also relaxes liquidity constraints in the off-season for some households, consequently leading to higher productivity.

Author : Geleta Abera
Publisher : GRIN Verlag
Page : 35 pages
File Size : 45,8 Mb
Release : 2021-04-16
Category : Social Science
ISBN : 9783346388971

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Ethiopian rural farm households participation on off-farm activities by Geleta Abera Pdf

Seminar paper from the year 2021 in the subject Sociology - Work, Education, Organisation, Graduate School of Business and Economics Lahr (Economics department), course: Development Economics, language: English, abstract: This study assesses the determinants of off-farm work participation decisions of farm households in Ethiopia. Ethiopia is an agrarian society where nearly 85% of the population is directly dependent on farming activities for their livelihood. It accounts for about 50% of the GDP and 90% of the total foreign exchange earnings. Crop production, livestock husbandry and mixed farming are the main types of farming activities in the country. Family labour is the primary farm input for the sector. The agricultural sector of the country is still characterized by low labour productivity, a declining farm size (an average of one hectare per household) and traditional farming systems, natural resources degradation, variable weather conditions, tenure insecurity, weak agricultural research base and extension system, lack of financial services, imperfect agricultural markets and poor infrastructure. Non-farm activities have a great potential to provide employment and additional incomes during the slack season to rural households. In addition, given rising population pressure on agricultural land which results in a decline in land holding per individual, off-farm activities can provide alternative employment. Despite their great potential, rural non-agricultural activities account for less than 3% of the rural labour force.

Author : Camilla Toulmin
Publisher : Unknown
Page : 66 pages
File Size : 41,9 Mb
Release : 2000
Category : Economic development
ISBN : STANFORD:36105028887128

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Diversification of Livelihoods by Camilla Toulmin Pdf

Author : Grace Carswell
Publisher : Unknown
Page : 290 pages
File Size : 55,5 Mb
Release : 1999
Category : Agriculture
ISBN : STANFORD:36105110133787

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Sustainable Livelihoods in Southern Ethiopia by Grace Carswell Pdf

Author : Abate, Gashaw Tadesse,Bachewe, Fantu Nisrane,Regassa, Mekdim D.,Minot, Nicholas
Publisher : Intl Food Policy Res Inst
Page : 64 pages
File Size : 53,6 Mb
Release : 2023-01-03
Category : Political Science
ISBN : 8210379456XXX

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Rural income diversification in Ethiopia: Patterns, trends, and welfare impacts by Abate, Gashaw Tadesse,Bachewe, Fantu Nisrane,Regassa, Mekdim D.,Minot, Nicholas Pdf

Increased diversification of rural households into the rural non-farm economy is an important driver of economic growth and structural transformation in countries like Ethiopia where the vast majority of people live in rural areas and are largely dependent on seasonal agriculture. Some of the benefits of diversification include efficient utilization of asset endowments (e.g., labor during dry season) and reduction of risks. In this study we explore the: (i) patterns and trends of diversification, (ii) drivers of diversification including the association between rainfall risk/shocks and diversification, and (iii) welfare effects of diversification during the recent decade using three rounds of representative household data from the four main regions of Ethiopia. We used Cragg’s double-hurdle model, a method that considers the two-step decision making process in diversification (i.e., participation and extent of participation), to identify the determinants of diversification and a fixed-effect and instrumental variable (IV) approaches to understand the links between diversification and household welfare. The descriptive results show that rural households generally adopt a livelihood strategy dominated by farming and that the level of diversification has been stagnant over the period of analysis considered. More importantly, the vast majority of households continue to draw a substantial share of their income from crop production, followed by livestock. The income from non-farm activities accounts only between 17 percent and 23 percent of the total income. The econometrics results show that diversification is positively associated with credit access, membership in social insurance, ownership of mobile phone, relative measure of household wealth, and population density. Conversely, access to relatively large, fertile, and irrigable land discourages diversification into non-farm activities. The analysis on the association between rainfall risks and diversification indicates that rural households use income diversification both as risk mitigation and shock coping strategy. The results on the link between income diversification and household welfare indicate a positive association between diversification and household total consumption expenditure, dietary diversity score, and housing/roof quality. In sum, the results imply the need for a deliberate effort to expand the non-farm economy so as to tap its full potential for employment generation, income growth, and welfare improvements. A starting point could be for agricultural and rural development policies and investments to go beyond promotion of cereal crop production and facilitate participation in high value crop, livestock, aquaculture production. Incentivizing investments in value addition activities that can create and enrich upward and downward linkages in the midstream segment of agricultural value chains is another potential avenue to boost rural non-farm economy.

Author : Food and Agriculture Organization of the United Nations
Publisher : Food & Agriculture Org.
Page : 302 pages
File Size : 41,8 Mb
Release : 2018-09-14
Category : Political Science
ISBN : 9789251305720

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The State of Food Security and Nutrition in the World 2018 by Food and Agriculture Organization of the United Nations Pdf

New evidence this year corroborates the rise in world hunger observed in this report last year, sending a warning that more action is needed if we aspire to end world hunger and malnutrition in all its forms by 2030. Updated estimates show the number of people who suffer from hunger has been growing over the past three years, returning to prevailing levels from almost a decade ago. Although progress continues to be made in reducing child stunting, over 22 percent of children under five years of age are still affected. Other forms of malnutrition are also growing: adult obesity continues to increase in countries irrespective of their income levels, and many countries are coping with multiple forms of malnutrition at the same time – overweight and obesity, as well as anaemia in women, and child stunting and wasting.

Author : Abeje Berhanu
Publisher : African Books Collective
Page : 116 pages
File Size : 41,6 Mb
Release : 2012
Category : Social Science
ISBN : 9789994455690

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The Rural-urban Nexus in Migration and Livelihoods Diversification by Abeje Berhanu Pdf

The objective of this study is to investigate the linkage between migration and livelihood diversification with emphasis on the socio-economic and structural processes that impact on rural to urban migration. The specific objectives include: to explore the factors affecting rural to urban migration by focusing on household assets and social attachment variables; to examine the different ways by which migration affects rural households' livelihoods and vice versa; to examine rural-urban linkages using migration with the aim of contributing to efforts to understand the migration process in the Amhara region; and to investigate the impact, direct or indirect, of government policy on trends of rural to urban migration in Ethiopia.

Author : Frank Ellis
Publisher : Oxford University Press
Page : 300 pages
File Size : 44,8 Mb
Release : 2000-06-29
Category : Business & Economics
ISBN : 0198296967

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Rural Livelihoods and Diversity in Developing Countries by Frank Ellis Pdf

Rural families in developing countries make a living by engaging in diverse activities. These range from farming, to rural trade, to migration to distant cities and even abroad. This book explores the implications of rural livelihood diversity for key topics in development studies and for poverty reduction policies. The livelihoods approach is gaining momentum, and this is the first book to set it out in detail.

Author : Tassew Woldehanna
Publisher : Unknown
Page : 300 pages
File Size : 44,5 Mb
Release : 2000
Category : Agricultural productivity
ISBN : IND:30000077630808

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Economic Analysis and Policy Implications of Farm and Off-farm Employment by Tassew Woldehanna Pdf

Although the study focuses on Northern Ethiopia, most conclusions can have a wider application in the other parts of the country and in many of the Sub-Saharan African countries where agriculture is not dynamic and the capital market is highly imperfect.

Author : Henry Bernstein,Ben Crow,Hazel Johnson
Publisher : Oxford University Press, USA
Page : 338 pages
File Size : 42,7 Mb
Release : 1992
Category : Agriculture
ISBN : 9780198773351

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Rural Livelihoods by Henry Bernstein,Ben Crow,Hazel Johnson Pdf

This book is concerned with the question of how people in developing countries survive, and how their lives have been affected by the great changes since the Second World War. Throughout large parts of the developing world rural livelihoods are in crisis. Even in those parts of the third world where there has been growth of food output, that growth has rarely been translated into a commensurate expansion of livelihoods. Frequently, both economic stagnation and economic growth are translated into suffering for those who live in the countryside. Many people are aware that there is a crisis of livelihoods in sub-Saharan Africa, but the understanding of that crisis rarely transcends simple conceptions of food or environmental crisis or the inadequacy of states: the ubiquity of crisis is rarely comprehended. This book addresses the pressing question of rural poverty. It examines the diverse human implications of rural change, the various crises of rural livelihoods which arise from change, and the survival strategies of individuals and households. It describes the great processes of agrarian transformation which have fundamentally altered rural livelihoods in developing countries and identifies some of the dilemmas for public action which arise from agrarian transformation and the crises of rural livelihoods. The contributors draw upon a range of disciplinary approaches to the subject, including anthropology, sociology, economics, political economy, agricultural science, and development studies.

Author : Food and Agriculture Organization of the United Nations
Publisher : Food & Agriculture Org.
Page : 76 pages
File Size : 55,8 Mb
Release : 2023-05-23
Category : Social Science
ISBN : 9789251377154

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Economic transformation and diversification towards off-farm income in rural and urban areas by Food and Agriculture Organization of the United Nations Pdf

This working paper is the update of an earlier cross-country study on household income sources using an expanded harmonized dataset. The analysis presented covers a total of 93 surveys representing 41 countries – nearly double that of the previous study – to depict rural and urban households’ livelihood strategies across different levels of economic development. The findings shed light on the relationship between household livelihood activity portfolios and per capita gross domestic product, confirming a picture of multiple livelihood activities across the rural and urban space, at different levels of development. However, we find an emerging divergence between countries from sub-Saharan Africa and those from the rest of the world regarding employment and income generation.

Author : Agnes Andersson Djurfeldt,Fred Mawunyo Dzanku,Aida Cuthbert Isinika
Publisher : Oxford University Press
Page : 286 pages
File Size : 53,8 Mb
Release : 2018
Category : Business & Economics
ISBN : 9780198799283

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Agriculture, Diversification, and Gender in Rural Africa by Agnes Andersson Djurfeldt,Fred Mawunyo Dzanku,Aida Cuthbert Isinika Pdf

This book contributes to the understanding of smallholder agriculture in sub-Saharan Africa through addressing the dynamics of intensification and diversification within and outside agriculture in contexts where women have much poorer access to agrarian resources than men.

Author : Lire Ersado
Publisher : World Bank Publications
Page : 28 pages
File Size : 43,6 Mb
Release : 2006
Category : Income
ISBN : 8210379456XXX

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Income Diversification in Zimbabwe by Lire Ersado Pdf

"The author examines, taking into account the urban-rural divides, the changes and welfare implications of income diversification in Zimbabwe following macroeconomic policy changes and droughts of the early 1990s. Data from two comparable national income, consumption and expenditure surveys in 1990-91 and 1995-96, which straddled a period of economic volatility and natural disasters, show that the percentage of households earning income from private and informal sources grew considerably, while that from government and formal sources declined in the aftermath of the drought and policy changes. The author finds that, in general, rural households tend to have a more diversified portfolio of income compared with their urban counterparts, and the degree of diversification decreases with the level of urbanization. However, there are important differences in the level of diversification within the rural and urban areas depending on wealth: While the relatively better-off households have a more diversified income base in rural areas, it is the poor who pursue multiple income sources in urban areas. A decomposition of changes in welfare indicates that the total contribution of income diversification is large and increased between 1990-91 and 1995-96 in both urban and rural areas. On the other hand, there were significant declines in returns to human and physical capital assets during the same period. The findings suggest that households with a more diversified income base are better able to withstand the unfavorable impacts of the policy and weather shocks. The fact that relatively better-off households have a more diversified income base following the shocks implies that the poor are more vulnerable to economic changes unaccompanied by well-designed safety nets. "--World Bank web site.