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Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia

Received: 27 April 2022    Accepted: 20 June 2022    Published: 12 July 2022
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Abstract

The main objective of this study was to identify the main factors affecting participation in off/non-farm activities in Sinana district, West Bale zone, Ethiopia. Off/non - farm income-generating activities play an important role to supplement income from agriculture. For this study, data were collected from 423 smallholder farmers in Sinana district. The study combined quantitative and qualitative data obtained from desk assessments, focus group discussions and an in-depth interview. Descriptive statistics and econometric models were used to analyze the data. Descriptive methods such as mean, percentage and frequency were used. Both Logistic and probit models were fitted to the data. Logistic regression had lower AIC and BIC. The lower the value of AIC and BIC, the better the model goodness of fit. Therefore, the logistic model is preferred in this study. The results of the logistic regression model showed that the education attainment of the household head, landholding size, credit, frequency of agricultural extension visits, distance to nearby town, cell phone ownership, number of oxen, membership to ‘equb’, crop insect attach and disease invasion were statistically and significantly affected participation in off/non-farm activities. Therefore, strengthening existing agricultural extension services, disseminating information on available jobs, providing loans and developing infrastructure are key areas to be considered.

Published in Journal of Investment and Management (Volume 11, Issue 2)
DOI 10.11648/j.jim.20221102.11
Page(s) 33-39
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Participation in Off/Non–farm Activities, Logistic Regression, Ethiopia

References
[1] Abdulaziz Shehu and Nura Abubakar (2015). Determinants Of Participation Of Farm Households In Non-Farm Enterprise Activities In Rural Nigeria, International Journal Of Economics, Commerce And Management Vol. Iii, Issue 6, Http://Ijecm.Co.Uk/ Issn 2348 0386
[2] Algaga Balense and Sisay Debebe (2019). Debebe determinants of rural livelihood strategies and income diversification among pastoral and agro-pastoral households in southern Ethiopia, EJBSS 2 (1), 164-188.
[3] Ana Damenaa, and Demmelash Habteb (2017). Effect of Non-farm Income on Rural Household Livelihood: A Case Study of Moyale District Oromia Regional State, Ethiopia, American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS), Vol 33 No 1 (2017), ISSN (Print) 2313-4410, ISSN (Online) 2313-4402.
[4] Avner A., And Ayal K., (2001), Off-Farm Work and Capital Accumulation Decisions of Farmers over the Life Cycle: The Role of Heterogeneity and State Dependence, the Hebrew University Central Statistical Authority (CSA) (2015). Ethiopia Socioeconomic Survey (ESS) wave two (2013/2014): Basic information document. Addis Ababa, CSA. https://dhsprogram.com/pubs/pdf/FR328/FR328.pdf
[5] Benjamin Tetteh Anang, Kwame Nkrumah-Ennin, and Joshua Anamsigiya Nyaaba (2020). Does Off-Farm Work Improve Farm Income? Empirical Evidence from Tolon District in Northern Ghana. Advances in Agriculture, Volume 2020 Article ID 1406594, https://doi.org/10.1155/2020/1406594
[6] Central Statistical Authority (CSA) (2015). Ethiopia Socioeconomic Survey (ESS) wave two (2013/2014): Basic information document. Addis Ababa, CSA.
[7] EEA, Ethiopian Economic Association (2021). “The State of Ethiopian Economy 2020/21. Economic Development, Population Dynamics, and Welfare. Editors Mengistu Ketema, Getachew Diriba, Addis Ababa.
[8] Ellis, Frank. 2000. Rural Livelihoods and Diversity in Developing Countries, Oxford University Press, New York.
[9] Gujarati, D. (2004) Basic Econometrics. Fourth Edition, McGraw-Hill Companies, New York.
[10] Komikouma Apelike Wobuibe Neglo, Tnsue Gebrekidan and Kaiyu Lyu (2021). Determinants of participation in non-farm activities and its effect on household income: An empirical study in Ethiopia, Journal of Development and Agricultural Economics: Vol. 13 (1), pp. 72-92, DOI: 10.5897/JDAE2020.1231.
[11] Kothari, C. (2004). Research Methodology: Methods and Techniques, Second Edition, Wisha, Prakasha, New Delhi.
[12] Mintewab B., Zenebe G., Liyousew G., And Köhlin G., (2010), Participation In Off-Farm Employment, Rainfall Patterns, And Rate Of Time Preferences The Case Of Ethiopia, Environment For Development Discussion Paper Series.
[13] MoFED (2021). Ministry of finance and economic development, Macro-Fiscal Performance in Ethiopia and Recent Fiscal Policy Developments, Addis Ababa, October 2021, No. 04/2021.
[14] Odoh N. E. and Nwibo, S. U. (2017), Determinants of Rural Non-Farm Households Income Diversification in Southeast Nigeria, International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 164,, http://www.internationalresearchjournaloffinanceandeconomics.com
[15] Ogbonna Chinwe, A. (2015). Determinants and impacts of off-farm participation and support systems on the overall income of the rural farmers: A case study of Umuawa, Abia State, Nigeria. Master’s dissertation submitted in partial fulfillment of the requirements for the degree of Master of Science in Nutrition and Rural Development.
[16] World Bank (2022). https://www.worldbank.org/en/country/ethiopia/overview#1 accessed on April 27/22
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  • APA Style

    Gemechu Mulatu Kerorsa. (2022). Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia. Journal of Investment and Management, 11(2), 33-39. https://doi.org/10.11648/j.jim.20221102.11

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    ACS Style

    Gemechu Mulatu Kerorsa. Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia. J. Invest. Manag. 2022, 11(2), 33-39. doi: 10.11648/j.jim.20221102.11

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    AMA Style

    Gemechu Mulatu Kerorsa. Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia. J Invest Manag. 2022;11(2):33-39. doi: 10.11648/j.jim.20221102.11

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  • @article{10.11648/j.jim.20221102.11,
      author = {Gemechu Mulatu Kerorsa},
      title = {Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia},
      journal = {Journal of Investment and Management},
      volume = {11},
      number = {2},
      pages = {33-39},
      doi = {10.11648/j.jim.20221102.11},
      url = {https://doi.org/10.11648/j.jim.20221102.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20221102.11},
      abstract = {The main objective of this study was to identify the main factors affecting participation in off/non-farm activities in Sinana district, West Bale zone, Ethiopia. Off/non - farm income-generating activities play an important role to supplement income from agriculture. For this study, data were collected from 423 smallholder farmers in Sinana district. The study combined quantitative and qualitative data obtained from desk assessments, focus group discussions and an in-depth interview. Descriptive statistics and econometric models were used to analyze the data. Descriptive methods such as mean, percentage and frequency were used. Both Logistic and probit models were fitted to the data. Logistic regression had lower AIC and BIC. The lower the value of AIC and BIC, the better the model goodness of fit. Therefore, the logistic model is preferred in this study. The results of the logistic regression model showed that the education attainment of the household head, landholding size, credit, frequency of agricultural extension visits, distance to nearby town, cell phone ownership, number of oxen, membership to ‘equb’, crop insect attach and disease invasion were statistically and significantly affected participation in off/non-farm activities. Therefore, strengthening existing agricultural extension services, disseminating information on available jobs, providing loans and developing infrastructure are key areas to be considered.},
     year = {2022}
    }
    

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    T1  - Factors Affecting Rural Households Participation in Off/Non-Farm Activities in Sinana District, West-Bale–Zone, Ethiopia
    AU  - Gemechu Mulatu Kerorsa
    Y1  - 2022/07/12
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    N1  - https://doi.org/10.11648/j.jim.20221102.11
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    T2  - Journal of Investment and Management
    JF  - Journal of Investment and Management
    JO  - Journal of Investment and Management
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    UR  - https://doi.org/10.11648/j.jim.20221102.11
    AB  - The main objective of this study was to identify the main factors affecting participation in off/non-farm activities in Sinana district, West Bale zone, Ethiopia. Off/non - farm income-generating activities play an important role to supplement income from agriculture. For this study, data were collected from 423 smallholder farmers in Sinana district. The study combined quantitative and qualitative data obtained from desk assessments, focus group discussions and an in-depth interview. Descriptive statistics and econometric models were used to analyze the data. Descriptive methods such as mean, percentage and frequency were used. Both Logistic and probit models were fitted to the data. Logistic regression had lower AIC and BIC. The lower the value of AIC and BIC, the better the model goodness of fit. Therefore, the logistic model is preferred in this study. The results of the logistic regression model showed that the education attainment of the household head, landholding size, credit, frequency of agricultural extension visits, distance to nearby town, cell phone ownership, number of oxen, membership to ‘equb’, crop insect attach and disease invasion were statistically and significantly affected participation in off/non-farm activities. Therefore, strengthening existing agricultural extension services, disseminating information on available jobs, providing loans and developing infrastructure are key areas to be considered.
    VL  - 11
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Author Information
  • Department of Economics, Wollega University, Nekemte, Ethiopia

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