The Effect of Off-Farm Income Diversification on Households Economic Wellbeing amongst Rural Farm Households in East Gojjam Zone: An Endogenous Switching Approach
| Main Author: | ashebir tsegaye |
|---|---|
| Format: | info publication-workingpaper |
| Bahasa: | eng |
| Terbitan: |
, 2019
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3516500 |
Daftar Isi:
- The research was conducted with the objective of examining and studying the effect of off-farm activities on the economic wellbeing of selected rural households’ in East Gojjam Zone. To do so, a primary data was collected from 620 selected households using structured, unstructured and focus group discussions. We employed a logit model to examine the determinants of participation off-farm activities and hence, the result of the model illuminates off-farm income diversification decision significantly depends on household head’s education, age, family size, health status and community level infrastructures. The model also indicates that households residing closer to markets are more likely to diversify into off-farm activities than those in remote areas. To examine the effect of off-farm income diversification on the economic wellbeing of rural farm households’ we employed endogenous switching model hence, this model accounts for selection bias resulting from unobserved factors that potentially affect farm households’ decision to participate in off-farm activities. Consequently, the result of the model reveals that off-farm income diversification has a significant and positive impact on households’ consumption expenditure and their food availability. Hence, this study concludes that off-farm income diversification is a true pathway for improving the economic wellbeing of rural farm households in rural areas of East Gojjam Zone.