IDEAS home Printed from https://ideas.repec.org/a/wun/timjeb/tjebv09y2016i01a03.html
   My bibliography  Save this article

Analyzing the determinants of non-farm income diversification of farm households in Peshawar district of Pakistan

Author

Listed:
  • Nazish KANWAL

    (Department of Agricultural Economics and Management, China Agricultural University, Beijing, China)

  • Muhammad Ammad KHAN

    (Department of Development Studies, China Agricultural University, Beijing, China)

  • Zhihao ZHENG

    (College of Economics and Management, China Agricultural University, Beijing, China)

Abstract

The agricultural sector in Pakistan is not well-established to provide full employment opportunities and sufficient income for needed living standard to the rural population. Stagnant agricultural productivity and low returns in farming have led rural residents to look for alternative livelihoods, especially non-farm employment. With this background, the present study is an endeavor to empirically determine the factors of non-farm income diversification of rural farm households in Peshawar district of Pakistan. The study was undertaken in four villages and data was amassed from 196 small farming households by using the multi-stage sampling technique. The data were analyzed using the descriptive statistical measures, the mean of income shares approach and the ordinary least squares regression analysis. The results indicate that in all the selected villages, the pattern of non-farm employment was more or less the same; however, the income from non-farm employment activities had an important contribution towards incrementing the absolute income of farm households. Non-farm income diversification is hence crucial for sustaining livelihoods and an integral dimension for invigorating rural economies. Therefore, the study recommends the promotion of non-farm employment as a good strategy for supplementing the income of small farmers without shifting attention from agriculture.

Suggested Citation

  • Nazish KANWAL & Muhammad Ammad KHAN & Zhihao ZHENG, 2016. "Analyzing the determinants of non-farm income diversification of farm households in Peshawar district of Pakistan," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 9(1), pages 33-48, June.
    • Handle: RePEc:wun:timjeb:tjeb:v09:y2016:i01:a03
    as

    Download full text from publisher

    File URL: http://tjeb.ro/index.php/tjeb/article/view/TJEB9-1_33to48/pdf
    Download Restriction: no
    File URL: http://tjeb.ro/index.php/tjeb/article/view/TJEB9-1_33to48
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    2. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    3. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    4. Lay, Jann & Schüler, Dana, 2008. "Income Diversification and Poverty in a Growing Agricultural Economy: The Case of Ghana," Proceedings of the German Development Economics Conference, Zurich 2008 39, Verein für Socialpolitik, Research Committee Development Economics.
    5. Ralitza Dimova & Kunal Sen, 2010. "Is household income diversification a means of survival or a means of accumulation? Panel data evidence from Tanzania," Global Development Institute Working Paper Series 12210, GDI, The University of Manchester.
    6. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
    7. Teshome, Bekelu & Edriss, Abdi-Khalil, 2013. "Determinants and Patterns of Income Diversification among Smallholder Farmers in Akaki District, Ethiopia," Research Theses 157598, Collaborative Masters Program in Agricultural and Applied Economics.
    8. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2003. "Agricultural Adjustment And The Diversification Of Farm Households In Central Europe," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25843, International Association of Agricultural Economists.
    9. Food and Agriculture Organization, 2013. "The State of Food and Agriculture, 2013," Working Papers id:5511, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Awais Jabbar & Qun Wu & Jianchao Peng & Ali Sher & Asma Imran & Kunpeng Wang, 2020. "Mitigating Catastrophic Risks and Food Security Threats: Effects of Land Ownership in Southern Punjab, Pakistan," IJERPH, MDPI, vol. 17(24), pages 1-18, December.
    2. Manzoor Hussain Memon & Rafiq Ahmed, 2022. "Multi-topographical landscape: comparative vulnerability of climate-induced disaster-prone rural area of Pakistan," 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. 111(2), pages 1575-1602, March.

    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. Bekele Gebisa Etea & Deyi Zhou & Kidane Assefa Abebe & Dessalegn Anshiso Sedebo, 2020. "Is income diversification a means of survival or accumulation? Evidence from rural and semi-urban households in Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5751-5769, August.
    2. Asfaw, Solomon & McCarthy, Nancy & Paolantonio, Adriana & Cavatassi, Romina & Amare, Mulubrhan & Lipper, Leslie, 2015. "Diversification, Climate Risk and Vulnerability to Poverty: Evidence from Rural Malawi," 2015 Conference, August 9-14, 2015, Milan, Italy 230216, International Association of Agricultural Economists.
    3. 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.
    4. Asfaw, Solomon & Savastano, Sara, 2015. "Topic: Building Resilience to Climate Change Through Social Protection and Climate-Smart Agriculture: Synergies and Trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 210963, International Association of Agricultural Economists.
    5. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    6. Wunder, Sven & Angelsen, Arild & Belcher, Brian, 2014. "Forests, Livelihoods, and Conservation: Broadening the Empirical Base," World Development, Elsevier, vol. 64(S1), pages 1-11.
    7. Pace, Noemi & Sebastian, Ashwini & Daidone, Silvio & Dela O Campos, Ana Paula & Prifti, Ervin & Davis, Benjamin, 2022. "Cash transfers’ role in improving livelihood diversification strategies and well-being: short- and medium-term evidence from Zimbabwe," World Development, Elsevier, vol. 154(C).
    8. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    9. 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.
    10. Fred Mawunyo Dzanku, 2018. "Rational But Poor? An Explanation for Rural Economic Livelihood Strategy," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 365-381, June.
    11. Nguyen, Trung Thanh & Do, Truong Lam & Bühler, Dorothee & Hartje, Rebecca & Grote, Ulrike, 2015. "Rural livelihoods and environmental resource dependence in Cambodia," Ecological Economics, Elsevier, vol. 120(C), pages 282-295.
    12. Jiao, Xi & Pouliot, Mariève & Walelign, Solomon Zena, 2017. "Livelihood Strategies and Dynamics in Rural Cambodia," World Development, Elsevier, vol. 97(C), pages 266-278.
    13. Islam, Masanori Matsuura Yir-Huieh Luh Abu Hayat Md. Saiful, 2021. "Climate Variability, Livelihood Diversification, and Household Food Security in Bangladesh," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329402, Asian Society of Agricultural Economists (ASAE).
    14. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    15. Shanta Paudel Khatiwada & Wei Deng & Bikash Paudel & Janak Raj Khatiwada & Jifei Zhang & Yi Su, 2017. "Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal," Sustainability, MDPI, vol. 9(4), pages 1-20, April.
    16. Van den Broeck, Goedele & Maertens, Miet, 2017. "Moving Up or Moving Out? Insights into Rural Development and Poverty Reduction in Senegal," World Development, Elsevier, vol. 99(C), pages 95-109.
    17. Noack,Frederik & Wunder,Sven & Angelsen,Arild & Börner,Jan, 2015. "Responses to weather and climate : a cross-section analysis of rural incomes," Policy Research Working Paper Series 7478, The World Bank.
    18. Antonelli, Chiara & Coromaldi, Manuela & Pallante, Giacomo, 2022. "Crop and income diversification for rural adaptation: Insights from Ugandan panel data," Ecological Economics, Elsevier, vol. 195(C).
    19. VAN DEN BROECK, Goedele & MAERTENS, Miet, 2016. "Moving Up or Moving Out? Insights on Rural Development and Poverty Reduction in Senegal," Working Papers 242367, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    20. Tuyen, Tran Quang, 2013. "Farmland and peri-urban livelihoods in Hanoi, Vietnam: evidence from household survey data," MPRA Paper 60847, University Library of Munich, Germany, revised 19 Dec 2014.

    More about this item

    Keywords

    Income diversification; Farm income; Non-farm income; Peshawar district; Pakistan.;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    Statistics

    Access and download statistics

    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:wun:timjeb:tjeb:v09:y2016:i01:a03. 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: Romeo Margea (email available below). General contact details of provider: https://edirc.repec.org/data/feuvtro.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.