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Determinants and Patterns of Income Diversification among Smallholder Farmers in Akaki District, Ethiopia

Author

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  • Teshome, Bekelu
  • Edriss, Abdi-Khalil

Abstract

This research was initiated to find out the different factors affecting income diversification and assess patterns of income diversification in Akaki district of Ethiopia. Two stage random sampling with Proportionate Probability Sampling (PPS) was used to collect cross-sectional data from 155 farm households using structured questionnaire. The data were also supported with documents from agricultural and rural development office and farmers cooperatives in the study area. The Tobit model was used to analyze the factors determining the income diversification. From the descriptive statistics, sales of homemade farm implements and drinks, and non-farm employment was found to be the most important sources of off-farm income in the study area. The results from Tobit model indicate that, family size; number of extension visit per year and education level has a positive significant effect over income diversification. On the other hand, age of the household head; land size and average distance from market have negative and significant influence on the household’s decision towards diversification.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:cmpart:157598
    DOI: 10.22004/ag.econ.157598
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    Citations

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    Cited by:

    1. Drall, Anviksha & Mandal, Sabuj Kumar, 2021. "Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis," World Development, Elsevier, vol. 141(C).
    2. 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.
    3. 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.
    4. Daranrat Jaitiang & Wen-Chi Huang & Shang-Ho Yang, 2021. "Does Income Inequality Exist among Urban Farmers? A Demonstration of Lorenz Curves from Northern Thailand," Sustainability, MDPI, vol. 13(9), pages 1-16, May.
    5. Anviksha Drall & Sabuj Kumar Mandal, 2020. "Determinants of various modes of rural non-farm sector (RNFS) employment in SAT (semi-arid tropics) and Eastern regions of India: an empirical analysis," Indian Economic Review, Springer, vol. 55(2), pages 253-282, December.
    6. S. Sharaunga & M. Mudhara, 2016. "The impact of improved ‘water-use security’ on women’s reliance on agricultural incomes in KwaZulu-Natal Province, South Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(6), pages 1039-1052, December.
    7. Jude Ndzifon Kimengsi & Mukong Alfred Kechia & Balgah Roland Azibo & Jürgen Pretzsch & Jude Kwei, 2019. "Households’ Assets Dynamics and Ecotourism Choices in the Western Highlands of Cameroon," Sustainability, MDPI, vol. 11(7), pages 1-16, March.

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