The determinants of non-farm income diversification in rural Ethiopia

Weldegebriel, Zerihun Berhane, Foloni, Giuseppe and Prowse, Martin ORCID: https://orcid.org/0000-0002-1271-468X (2015) The determinants of non-farm income diversification in rural Ethiopia. Journal of Poverty Alleviation and International Development, 6 (1). pp. 109-130.

Full text not available from this repository. (Request a copy)

Abstract

Diversification has long been viewed as a risk minimization strategy in the face of increasing climatic and economic risks in developing countries. This paper examines the determinants of non-farm income diversification in rural Ethiopia for a four-wave panel of 1240 households from the Ethiopian Rural Household Survey over the period 1994–2009. The paper makes a conceptual distinction between non-farm and off-farm income and uses fixed and random-effects models to control for unobserved characteristics. The results suggest that the variables that determine non-farm diversification consumption per capita and livestock holdings—belong to pull factors and reflect a strategy by wealthier households. Coupled with instrumental variable estimations to ascertain the direction of causality, these findings lend support to the argument that the main motivation for increasing non-farm diversification is likely to be accumulation.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Global Development (formerly School of International Development)
Related URLs:	https://portal.research.lu.se/portal/en/... https://www.research.manchester.ac.uk/po...
Depositing User:	LivePure Connector
Date Deposited:	21 Jul 2020 01:37
Last Modified:	25 Sep 2024 14:52
URI:	https://ueaeprints.uea.ac.uk/id/eprint/76193
DOI:

Actions (login required)

View Item