Impact of Non-farm Activities on Wellbeing of Rural Household, the Case of Kersa District, Eastern Hararghe Zone, Ethiopia
Humanities and Social Sciences
Volume 8, Issue 6, November 2020, Pages: 182-190
Received: Sep. 19, 2020; Accepted: Sep. 30, 2020; Published: Nov. 19, 2020
Views 6      Downloads 10
Authors
Fami Abdurezak, Department of Agricultural Economics, Bonga University, Bonga, Ethiopia
Adinan Ahmed, Department of Rural Development and Agricultural Extension, Bonga University, Bonga, Ethiopia
Article Tools
Follow on us
Abstract
The study evaluated impact of non-farm activities on wellbeing of rural household using cross-sectional data. Household’s consumption expenditure per adult equivalent was analyzed to measure household wellbeing. Multi-stage sampling technique was employed to select sample households from three Kebeles. Both primary and secondary data were used. Data were collected primarily through Semi-structured survey questionnaire from 178 households. Descriptive statistics and propensity score matching model were used to analyze the data. Propensity score matching (PSM) technique of impact evaluation preferred to overcome counterfactual problem and selection bias. Analysis results show that non-farm activities have increased consumption expenditure per adult equivalent ranging from 29.1% to 36.7% for participant households. In conclusion, participant households were more likely to be wellbeing as compared to the non-participant households. The result from the logistic estimator also revealed that participation in non-farm activities was significantly associated with variables such as age, education, adult equivalent size, cultivable land size, farm experience, and distance from main road, tropical livestock unit and access to nonfarm training. Therefore, such rural development planners and other stakeholders should consider the roles of these variables within the selection of participants for desired impact on economic wellbeing.
Keywords
Non-farm Activities, Impact, Propensity Score Matching, Wellbeing
To cite this article
Fami Abdurezak, Adinan Ahmed, Impact of Non-farm Activities on Wellbeing of Rural Household, the Case of Kersa District, Eastern Hararghe Zone, Ethiopia, Humanities and Social Sciences. Vol. 8, No. 6, 2020, pp. 182-190. doi: 10.11648/j.hss.20200806.13
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
IFAD (International Fund for Agricultural Development) (2011) Rural poverty portal., http://www.ruralpovertyportal.org/web/guest/region/home/tags/Africa.
[2]
MOARD (Ministry of Agriculture & Rural Development) (2010). Ethiopia’s agricultural sector policy and investment framework 2010-2020. Addis Ababa, Ethiopia: Federal Democratic Republic of Ethiopia (FDRE).
[3]
Diao, X., Thurlow, J., Benin, S., & Fan, S. (Eds.). (2012). Strategies and priorities for African agriculture: Economywide perspectives from country studies. Intl Food Policy Res Inst.
[4]
Tittonell, P., & Giller, K. E. (2013). When yield gaps are poverty traps: The paradigm of ecological intensification in African smallholder agriculture. Field Crops Research, 143, 76-90.
[5]
Tsega Adego, Belay Simane & Getachew A. Woldie (2019) The impact of adaptation practices on crop productivity in northwest Ethiopia: an endogenous switching estimation, Development Studies Research, 6: 1, 129-141, DOI: 10.1080/21665095.2019.1678186.
[6]
Echebiri R, Onwusiribe C, Nwaogu D (2017). Effect Of Livelihood Diversification On Food Security Status Of Rural Farm Households In Abia State Nigeria. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development 17 (1): 159-166.
[7]
Prowse M (2015). The Determinants of Non-Farm Income Diversification in Rural Ethiopia. Journal of Poverty Alleviation and International Development 6 (1): 109-130.
[8]
Abduselam, A. M., Badassa, W. ., & Milkessa, T. C. (2018). Impact of Productive Safety Net Programme on Food Security: The Case of Babile District, Somali Regional State, Ethiopia: Food Science and Quality Management, ISSN 2224-6088 (Paper) ISSN 2225-0557 (Online) Vol.81, 2018.
[9]
FAO, IFAD and WFP. 2013. The State of Food Insecurity in the World 2013. The multiple dimensions of food security. Rome, FAO.
[10]
AZIZ, S. A., SIDIQUE, S. F., & SAID, R. (2017). Determinants and Effects of Non-Farm Enterprise Diversification on Household Economic Wellbeing in Rural Nigeria. International Journal of Economics & Management, 11 (1).
[11]
Haggblade, S., Hazell, P., & Reardon, T. (2010). The rural non-farm economy: Prospects for growth and poverty reduction. World development, 38 (10), 1429-1441.
[12]
Davis, J. & Pearce, D. (2001). The Non-Agricultural Rural Sector in Central and Eastern Europe. Department for International Development (DFID)/World Bank. Collaborative Program for Rural Development. Natural Resources Institute Report No. 2630.
[13]
Emanuel, E. (2011). Rural Livelihood Diversification and Agricultural household welfare in Ghana. J. Develop. Agric. Econ. 3 (7): 325-334.
[14]
CSA. (2013). National Labor Force Survey Report, Central Statistical Agency of Ethiopia; Addis Ababa, Ethiopia.
[15]
UNDP (2015) African economic outlook: Ethiopia., http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/ CN_data/CN_Long_EN/Ethiopia_GB_2015.pdf.
[16]
Teshome, J., Bayisa, Z., & Keno, T. (2015). Fostering Rural Employment through Creating Rural Non–Farm Activities (RNA) and Household Jobs in Haramaya, Kersa, and Babile Woredas of Eastern Hararghe Zone, Oromia National Regional State, Ethiopia.
[17]
World Bank (2019). Seventh Ethiopia Economic Update: Special Topic: Poverty and Household Welfare in Ethiopia, 2011–2016 (English); World Bank Group: Washington, DC, USA, 2019; Availableonline:http://documents.worldbank.org/curated/en/432421554200542956/Special-Topic-Povertyand-Household-Welfare-in-Ethiopia-2011--2016 (accessed on 28 February 2020).
[18]
Adem, M., Tadele, E., Mossie, H., & Ayenalem, M. (2018). Income diversification and food security situation in Ethiopia: A review study. Cogent Food & Agriculture, 4 (1), 1513354.
[19]
African Development Bank. (2014). Africa Food Security Brief: Special focus on climate Africa Food Security change Impacts. Vol. 5: Statistics Department. April 2014.
[20]
WFP & CSA (2014). Comprehensive food security and vulnerability analysis in Ethiopia. Ethiopia: Addis Ababa.
[21]
Sewnet, Y. (2015). Causes and coping mechanisms of food insecurity in rural Ethiopia. Agricultural and Biology Journal of North America, 6 (5), 123-133.
[22]
Welteji, D., Mohammed, K., & Hussein, K. (2017). The contribution of Productive Safety Net Program for food security of the rural households in the case of Bale Zone, Southeast Ethiopia. Agriculture & Food Security, 6 (1), 53.
[23]
MoARD (2010). Ethiopia’s Agriculture Sector Policy and Investment Framework: Ministry of Agriculture and Rural Development Ten-year Road Map (2010-2020).
[24]
CSA (Central Statistical Agency). (2012). Population size by Age, Area and Density by Region, Zone and Woreda, Addis Ababa, Ethiopia.
[25]
FAO (2015). The State of Food and Agriculture Social protection and agriculture: Breaking the cycle of rural poverty. Food and agriculture organization of the United Nations Rome, 2015.
[26]
Fao, W. (2010). The state of food insecurity in the World 2010, Addressing food insecurity in protracted crises. WFP, FAO. Journal of Rural Studies, 29, 101–112.
[27]
Weldegebriel, Z. B. (2015). Rural Non-Farm Diversification in Ethiopia: What Determines Participation and Returns?
[28]
Esubalew Y and Daniel M (2019). Impact of Livelihood Diversification on Rural Household Food Security: Evidence from Goncha-Siso-Enesie Destrict of Amhara Regional State, Ethiopia.
[29]
FDRE. (2015). Federal democratic republic of Ethiopia; The Second Growth and Transformation Plan (GTP II) (2015/16-2019/20) (Draft) September 2015Addis Ababa.
[30]
Loening, J., Rijkers, B., & Soderbom, M. (2008). Nonfarm microenterprise performance and the investment climate: evidence from rural Ethiopia. The World Bank.
[31]
Block, S. & Webb, P (2001). The dynamics of livelihood diversification in post-famine Ethiopia. FoodPolicy 2001, 26, 333–350.
[32]
Ali, M., & Peerlings, J. (2012). Farm households and nonfarm activities in Ethiopia: does clustering influence entry and exit?. Agricultural Economics, 43 (3), 253-266.
[33]
Zerai, B., & Gebreegziabher, Z. (2011). Effect of nonfarm income on household food security in eastern Tigrai, Ethiopia: An entitlement approach. Food Science and Quality Management, 1 (10), 1-23.
[34]
Yizengaw, B. (2014). Determinants of household income diversification and its effect on food security status in rural Ethiopia: Evidence from Ethiopia longitudinal rural household survey (Doctoral dissertation, Doctoral dissertation, Master’s thesis, Addis Ababa University, Addis Ababa, Ethiopia).
[35]
Gemechu, F., Zemedu, L., & Yousuf, J. (2016). Determinants of farm household food security in Hawi Gudina district, West Hararghe zone, Oromia Regional National State, Ethiopia. Journal of Agricultural Extension and Rural Development, 8 (2), 12-18.
[36]
Ayana, A., & Ermias G. (2019). The Impact of Off-farm Activities on Rural Household Income in Wolaita Zone, Southern Ethiopia. Journal of World Economic Research. Vol. 8, No. 1, 2019, pp. 8-16. doi: 10.11648/j.jwer.20190801.12.
[37]
Demissie, A., & Legesse, B. (2013). Determinants of income diversification among rural households: The case of smallholder farmers in Fedis district, Eastern Hararghe zone, Ethiopia. Journal of Development and Agricultural Economics, 5 (3), 120-128.
[38]
Gagabo, T. (2014). Analyzing the determinants and the effects of income diversification in rural Ethiopia. International social science.
[39]
Tefera, T. L., Perret, S., & Kirsten, J. F. (2004). Diversity in livelihoods and farmers' strategies in the Hararghe Highlands, eastern Ethiopia. International Journal of Agricultural Sustainability, 2 (2), 133-146.
[40]
Teshome, J., Bayisa, Z., & Keno, T. Fostering Rural Employment through Creating Rural Non–Farm Activities (RNA) and Household Jobs in Haramaya, Kersa, and Babile Woredas of Eastern Hararghe Zone, Oromia National Regional State, Ethiopia.
[41]
NCA (nutrition causal analysis) (2014). East Hararghe Zone, Fedis and Kersa Woredas, Ethiopia.
[42]
Kothari, C. R., 2004. Research methodology: Methods and techniques. New Age International.
[43]
Gujarati, D. N. (1995). Basic Econometrics. Second Edition. New York, MacGraw Hill, Inc. 838p.
[44]
Rosenbaum PR, Rubin DB (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70 (1): 41–55, https://doi.org/10.1093/biomet/70.1.41.
[45]
Caliendo, M. and Kopeinig, S., 2008. Some practical guidance for the implementation of propensity score matching.
[46]
Grootaert, C. (1986). Measuring and analyzing levels of living in developing countries: An annotated questionnaire, World Bank living standard measurements study working paper no. 24.
[47]
Ahmed, M. H., & Mesfin, H. M. (2017). The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia. Agricultural and Food Economics, 5 (6), 1-20.
[48]
Hagos, F., & Mamo, K. (2014). Financial viability of groundwater irrigation and its impact on livelihoods of smallholder farmers: The case of eastern Ethiopia. Water Resources and Economics, 7, 55-65.
[49]
Abro ZA, Alemu BA, Hanjra MA (2014) Policies for agricultural productivity growth and poverty reduction in rural Ethiopia. World Dev 59: 461–474, http://dx.doi.org/10.1016/j.worlddev.2014.01.033.
[50]
Naznin Sultan, Md. Elias Hossain, Md. & Khairul Islam (2015). Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh. International Journal of Business and Economics Research. Vol. 4, No. 3, 2015, pp. 172-179. doi: 10.11648/j.ijber.20150403.20.
[51]
Ibrahim, M. K., Adejoh, S. O., & Shaibu, U. M. (2017). Impact of Off-farm Sector Involvement on Welfare of Rural Households in Nigeria: Department of Agricultural Economics and Extension, Kogi State University, Nigeria.
[52]
Osarfo, D., Senadza, B., & Nketiah-Amponsah, E. (2016). The Impact of Nonfarm Activities on Rural Farm Household Income and Food Security in the Upper East and Upper West Regions of Ghana.
[53]
IFAD (2011), "Non-Farm Opportunities from Smallholder Agriculture", Conference on New Directions.://www.ifad.org/events/agriculture/doc/papers/non-farm.pdf.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186