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Why People Are Moving Out of Agriculture: Micro-Evidence from Uganda and Ethiopia

Bina, Jasmin LU (2020) EKHS22 20201
Department of Economic History
Abstract
This paper studies the determinants shaping the likelihood of being active in the non-farm sector in the rural economies of Sub-Saharan Africa. More specifically, the push, pull and capacity factors for a cross-sectional sample of rural Uganda and Ethiopia are explored. Using the newest nationally representative household surveys from 2015/16 for both countries, the determinants are examined for 2770 and 3027 individuals respectively. The analysis is conducted by specifying a Multinomial Logit Model to account for the three different categories the dependent variable can fall into, namely farm employment, non-farm wage employment and non-farm self-employment. The literature so far tends to conclude that several different factors affect the... (More)
This paper studies the determinants shaping the likelihood of being active in the non-farm sector in the rural economies of Sub-Saharan Africa. More specifically, the push, pull and capacity factors for a cross-sectional sample of rural Uganda and Ethiopia are explored. Using the newest nationally representative household surveys from 2015/16 for both countries, the determinants are examined for 2770 and 3027 individuals respectively. The analysis is conducted by specifying a Multinomial Logit Model to account for the three different categories the dependent variable can fall into, namely farm employment, non-farm wage employment and non-farm self-employment. The literature so far tends to conclude that several different factors affect the likelihood to engage in these activities, which is confirmed in this study. In addition to capacity variables, such as the level of human capital and initial wealth, the findings suggest that factors such as gender, age, access to markets, information, bank accounts and land holdings, appear to be of importance for the likelihood of being employed in non-farm activities. The study concludes that strengthening capacity factors could be important. However, this alone will not lead to a pull-factor led economic transformation in either of the countries without improvements related to push and pull factors. (Less)
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author
Bina, Jasmin LU
supervisor
organization
course
EKHS22 20201
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Rural Non-Farm Economy, Ethiopia, Uganda, Push Factors, Pull Factors, Capacity Factors, Multinomial Logit Model
language
English
id
9019337
date added to LUP
2020-07-03 12:08:05
date last changed
2020-07-03 12:08:05
@misc{9019337,
  abstract     = {This paper studies the determinants shaping the likelihood of being active in the non-farm sector in the rural economies of Sub-Saharan Africa. More specifically, the push, pull and capacity factors for a cross-sectional sample of rural Uganda and Ethiopia are explored. Using the newest nationally representative household surveys from 2015/16 for both countries, the determinants are examined for 2770 and 3027 individuals respectively. The analysis is conducted by specifying a Multinomial Logit Model to account for the three different categories the dependent variable can fall into, namely farm employment, non-farm wage employment and non-farm self-employment. The literature so far tends to conclude that several different factors affect the likelihood to engage in these activities, which is confirmed in this study. In addition to capacity variables, such as the level of human capital and initial wealth, the findings suggest that factors such as gender, age, access to markets, information, bank accounts and land holdings, appear to be of importance for the likelihood of being employed in non-farm activities. The study concludes that strengthening capacity factors could be important. However, this alone will not lead to a pull-factor led economic transformation in either of the countries without improvements related to push and pull factors.},
  author       = {Bina, Jasmin},
  keyword      = {Rural Non-Farm Economy,Ethiopia,Uganda,Push Factors,Pull Factors,Capacity Factors,Multinomial Logit Model},
  language     = {eng},
  note         = {Student Paper},
  title        = {Why People Are Moving Out of Agriculture: Micro-Evidence from Uganda and Ethiopia},
  year         = {2020},
}