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Determinants of income diversification in rural Ethiopia: Evidence from panel data

Ethiopian Journal of Economics

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Title Determinants of income diversification in rural Ethiopia: Evidence from panel data
 
Creator Lemi, A
 
Description The aim of this study is to examine the determinants of income diversification in rural Ethiopia. Rural households allocate their work time between farm and of-farm activities to have secure income (consumption) for their family members. However, it is not clear why some households participate only in farm activities while others engage in both. Using survey data collected from 1500 rural households in 1994 and 1997, this study investigates the impacts of demographic, economic, and risk factors on participation and intensity of off-farm activities. The results of the study show that families with high dependency ratio, female household heads, high livestock value, and poor quality of land participated less in off-farm activities. Competition between off-farm and farm activities and effects of seasonality were more apparent from the intensity results than from participation. Increased crop production and sale of part of production during the main harvest season led households to engage less in off-farm activities. The results also confirm that off-farm activities were practiced as a means of subsistence when crop production fails; otherwise farmers abandon off-farm activities. Key Words: Dynamic Livelihood, Off-farm Income, Diversification, Ethiopia
 
Publisher Ethiopian Economic Association (EEA), 1997
 
Contributor —
 
Date 2010-09-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/eje/article/view/59930
10.4314/eje.v18i1.59930
 
Source Ethiopian Journal of Economics; Vol 18, No 1 (2009)
1993-3681
 
Language eng
 
Relation http://www.ajol.info/index.php/eje/article/view/59930/48201
 
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