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Diversification, Climate Risk and Vulnerability to Poverty: Evidence from Rural Malawi

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  • Asfaw, Solomon
  • McCarthy, Nancy
  • Paolantonio, Adriana
  • Cavatassi, Romina
  • Amare, Mulubrhan
  • Lipper, Leslie

Abstract

This paper investigates factors that impact cropland, labour and income diversification decisions and subsequent impacts on welfare. We use geo-referenced household data collected in 2011 from Malawi. The results show that measures of climate risk generally increase diversification across labour, cropland and income indicating that rainfall riskiness is a “push” factor for these indices. Our results also reveal that “pull” factors such as household wealth and education status of the household generally increase diversification across labour, land and income. Results also show that vulnerability to poverty is lower in environments with greater climate variability. Availability of services and support from rural institutions tends to increase diversification and reduce vulnerability to poverty. Looking at welfare measures as a function of diversification indices, all three measures of diversification increase consumption per capita, but income diversification has the strongest impacts on current consumption per capita and in reducing vulnerability to poverty.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:iaae15:230216
    DOI: 10.22004/ag.econ.230216
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    Cited by:

    1. Helen L. Walls & Deborah Johnston & Mehroosh Tak & Jane Dixon & Johanna Hanefeld & Elizabeth Hull & Richard D. Smith, 2018. "The impact of agricultural input subsidies on food and nutrition security: a systematic review," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(6), pages 1425-1436, December.
    2. A. Wondemu Kifle, 2016. "Working Paper 237 - Decomposing Sources of Productivity Change in Small-Scale Farming in Ethiopia," Working Paper Series 2332, African Development Bank.
    3. Asfaw, Solomon & Palma, Alessandro & Lipper, Leslie, 2016. "Diversification Strategies and Adaptation Deficit: Evidence from Niger," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246282, African Association of Agricultural Economists (AAAE).
    4. Asfaw, S., 2018. "Market Participation, Weather Shocks and Welfare: Evidence from Malawi," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277029, International Association of Agricultural Economists.
    5. Workie, Dejene Mamo, 2023. "Livelihood Diversification Strategies and Determinants by Smallholder Farmers in the Highland Areas of North Shewa Ethiopia," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 68(2).

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