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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
2016-04-01 13:04:19
date last changed
2025-04-04 15:22:33
@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}},
  keywords     = {{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}},
  url          = {{https://lup.lub.lu.se/search/files/3143897/7760977.pdf}},
  volume       = {{6}},
  year         = {{2015}},
}