Determinants of Rural Non-Farm Income Diversification in Ethiopia: Evidence from Panel Data Analysis

Yisak Nigusse

dc.contributor.author	Yisak Nigusse
dc.date.accessioned	2020-09-03T07:44:19Z
dc.date.available	2020-09-03T07:44:19Z
dc.date.issued	2020-09
dc.identifier.uri	http://hdl.handle.net/123456789/11176
dc.description.abstract	This study examines the determinants of nonfarm participation, intensity and dynamics in rural nonfarm economy (RNFE) in Ethiopia. The determinants of nonfarm activity are analyzed using probit models for nonfarm participation, and censored Tobit models for intensity. It also analyzes the dynamics of nonfarm income share using Quantile regression. It aims to enhance the role of non-farm activities in improving rural economy. A balanced panel data of 6,222 rural households were obtained from Ethiopia Socioeconomic Survey (ESS) 2014 and 2016. Control function approaches were used to reduce the severity of endogeneity problem. The results of the study reveal that credit access and poverty status have significant and positive effects on households’ participation in and income share of nonfarm economy. Household having old age heads, married heads, higher dependency ratio, faced with input price rise shock, land owners and having higher livestock are less likely to participate in nonfarm economic activities. Income share of nonfarm economy is low for households owning large livestock, higher dependency ratio, and older aged head and ill head. Household size, primary and secondary schooling, electricity, and other income improve household nonfarm share of income. Meanwhile, household having large household size and high land owner have dynamics affect share of nonfarm income. Governments should promote nonfarm employment by introducing infrastructure and financial facilities like, electricity, credit, and others in order to create new nonfarm employments opportunities and make profitable for the existed ones.	en_US
dc.language.iso	en	en_US
dc.subject	ECONOMICS	en_US
dc.title	Determinants of Rural Non-Farm Income Diversification in Ethiopia: Evidence from Panel Data Analysis	en_US
dc.type	Thesis	en_US