IDEAS home Printed from https://ideas.repec.org/a/ags/inijae/345187.html
   My bibliography  Save this article

Effects and Determinants of Diversification of Livelihood Options amongst Agricultural Households in India: A State Level Analysis

Author

Listed:
  • Sharma, H.R.
  • Malik, S.H.
  • Bhatia, Archi

Abstract

The paper seeks to find out the extent of diversification of livelihood options, types of options adopted by agricultural households, effect of choosing different combinations of livelihood options on average household income, consumption expenditure and the incidence of poverty and the factors that determine the probability of choosing different combinations of livelihood options. The results show that in most of the states a majority of the households adopt two or even more livelihood options and that those households who adopt non-farm business as one of the livelihood options have significantly higher average income, consumption expenditure and low incidence of poverty. The results of multinomial logit model show that household size, age, education and gender of the head of the family, number of adults and dependents in the family, social group and land category of a household, access to technical advice, per capita income and the state/union territories to which a household belongs to are significant factors affecting the probability of a household choosing different combinations of livelihood options in relation to cultivation. The unequivocal message of the study is that promotion of non-farm business as one of the options along with cultivation holds the key to enhance farmers’ income and pull them out of poverty.

Suggested Citation

  • Sharma, H.R. & Malik, S.H. & Bhatia, Archi, 2022. "Effects and Determinants of Diversification of Livelihood Options amongst Agricultural Households in India: A State Level Analysis," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 01), March.
  • Handle: RePEc:ags:inijae:345187
    DOI: 10.22004/ag.econ.345187
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345187/files/Effects%20and%20Determinants.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.345187?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Block, S. & Webb, P., 2001. "The dynamics of livelihood diversification in post-famine Ethiopia," Food Policy, Elsevier, vol. 26(4), pages 333-350, August.
    2. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    3. Sarah Alobo Loison, 2015. "Rural Livelihood Diversification in Sub-Saharan Africa: A Literature Review," Journal of Development Studies, Taylor & Francis Journals, vol. 51(9), pages 1125-1138, September.
    4. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
    5. Agyeman, Bernard Archibald Senyo & Asuming-Brempong, Samuel & Onumah, Edward Ebo, 2014. "Determinants of Income Diversification of Farm Households in the Western Region of Ghana," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(01), pages 1-18, February.
    6. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    7. Khatun, Dilruba & Roy, B.C., 2012. "Rural Livelihood Diversification in West Bengal: Determinants and Constraints," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(01), June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    2. Xuhuan Dai & Zhilong Wu & Yao Fan & Bo Li & Zihan Yang & Bo Nan & Xu Bi, 2019. "Characteristics and Determinants of Livelihood Diversification of Different Household Types in Far Northwestern China," Sustainability, MDPI, vol. 12(1), pages 1-20, December.
    3. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    4. Helmy, Imane, 2020. "Livelihood Diversification Strategies: Resisting Vulnerability in Egypt," GLO Discussion Paper Series 441, Global Labor Organization (GLO).
    5. Khan,Waseem & Tabassum, Shazia & Ansari, Saghir Ahmad, 2017. "Can Diversification of Livelihood Sources Increase Income of Farm Households? — A Case Study in Uttar Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 30(Conferenc).
    6. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
    7. Misganaw Teshager Abeje & Atsushi Tsunekawa & Enyew Adgo & Nigussie Haregeweyn & Zerihun Nigussie & Zemen Ayalew & Asres Elias & Dessalegn Molla & Daregot Berihun, 2019. "Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    8. Van Nam, M. & Lensink, R., 2008. "Economic Development of the Mekong Delta in Vietnam," CDS Research Reports CDS-27, University of Groningen, Centre for Development Studies (CDS).
    9. Ralitza Dimova & Sandra Kristine Halvorsen & Milla Nyyssölä & Kunal Sen, 2021. "Long-run rural livelihood diversification in Kagera, Tanzania," WIDER Working Paper Series wp-2021-9, World Institute for Development Economic Research (UNU-WIDER).
    10. Sènakpon F. A. Dedehouanou & John McPeak, 2018. "Diversify more or less? Household resilience and food security in rural Nigeria," Working Papers PMMA 2018-01, PEP-PMMA.
    11. Wenmei Liao & Jiawei Wang & Ying Lin & Yao Wang, 2021. "Chronic Illness and Income Diversification in Rural China," IJERPH, MDPI, vol. 18(7), pages 1-15, March.
    12. Sarah Alobo Loison, 2019. "Household livelihood diversification and gender: panel evidence from rural Kenya," Post-Print hal-02618651, HAL.
    13. repec:dgr:rugcds:cds-27 is not listed on IDEAS
    14. Mohammad Shamsul Hoq & Md. Taj Uddin & Shankar Kumar Raha & Mohammad Ismail Hossain, 2022. "Determinants of households’ livelihood diversification strategies to adapt to natural hazards: evidence from ecologically vulnerable haor region of Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 114(3), pages 3255-3291, December.
    15. Chuan Liao & Christopher Barrett & Karim-Aly Kassam, 2015. "Does Diversification Improve Livelihoods? Pastoral Households in Xinjiang, China," Development and Change, International Institute of Social Studies, vol. 46(6), pages 1302-1330, November.
    16. Khan, Rumman & Morrissey, Oliver, 2023. "Income diversification and household welfare in Uganda 1992–2012," Food Policy, Elsevier, vol. 116(C).
    17. Koirala, Krishna H. & Mishra, Ashok K. & Mehlhorn, Joey, 2014. "Using Copula to Test Dependency between Energy and Agricultural Commodities," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170364, Agricultural and Applied Economics Association.
    18. Kilian Nasung Atuoye & Roger Antabe & Yujiro Sano & Isaac Luginaah & Jason Bayne, 2019. "Household Income Diversification and Food Insecurity in the Upper West Region of Ghana," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 899-920, July.
    19. Kibru, Martha, 2020. "Labor allocation to Non-agricultural Activities in Rural Ethiopia: A Gender Perspective," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 29(01), April.
    20. Olale, Edward & Henson, Spencer, 2013. "The impact of income diversification among fishing communities in Western Kenya," Food Policy, Elsevier, vol. 43(C), pages 90-99.
    21. Dagunga, Gilbert & Ayamga, Micheal & Danso-Abbeam, Gideon, 2020. "To what extent should farm households diversify? Implications on multidimensional poverty in Ghana," World Development Perspectives, Elsevier, vol. 20(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:inijae:345187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/isaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.