Advanced

The Determinants of Non-Farm Income Diversification in Rural Ethiopia

Prowse, Martin LU (2015) In Journal of Poverty Alleviation and International Development 6(1). p.109-130
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... (More)
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. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
rural Ethiopia, fixed and random effects, Non-farm diversification
in
Journal of Poverty Alleviation and International Development
volume
6
issue
1
pages
109 - 130
publisher
Institute for Poverty Alleviation and International Development
ISSN
2233-6192
language
English
LU publication?
yes
id
cad993de-908e-46b4-a54c-4ca33492e907 (old id 7760968)
alternative location
http://jpaid.yonsei.ac.kr/
date added to LUP
2015-08-14 11:48:57
date last changed
2017-09-12 13:08:41
@article{cad993de-908e-46b4-a54c-4ca33492e907,
  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<br/><br>
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.},
  author       = {Prowse, Martin},
  issn         = {2233-6192},
  keyword      = {rural Ethiopia,fixed and random effects,Non-farm diversification},
  language     = {eng},
  number       = {1},
  pages        = {109--130},
  publisher    = {Institute for Poverty Alleviation and International Development},
  series       = {Journal of Poverty Alleviation and International Development},
  title        = {The Determinants of Non-Farm Income Diversification in Rural Ethiopia},
  volume       = {6},
  year         = {2015},
}