July 1, 2003 Thesis Open Access

DEMISSIE DAMITE

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    <subfield code="a">THE DETERMINANTS AND IMPACTS OF INCOME DIVERSIFICATION IN RURAL ETHIOPIA: THE CASE OF COMMUNITTIES IN SOUTHERN NATIONS, NATIONALITIES, AND PEOPLES REGIONAL STATE</subfield>
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    <subfield code="a">&lt;p&gt;This study examines the determinants and impacts of rural household income diversification.&lt;br&gt;
The analysis of this study is based on data taken from &amp;ldquo;Ethiopian Rural Households&lt;br&gt;
Surveys&amp;rdquo;(1997 and 1999) conducted by the Department of Economics, Addis Ababa&lt;br&gt;
University. To analyse the determinants of household&amp;#39;s choice among different livelihood&lt;br&gt;
strategies and the level of income diversity, multinomial logit model that corrects selection&lt;br&gt;
bias was estimated for five distinct livelihood strategies. The effects of income diversification&lt;br&gt;
on rural equity and consumption insurance against idiosyncratic income shock were analysed&lt;br&gt;
using Gini decomposition technique and linear regression model, respectively.&lt;br&gt;
The results indicated that the asset endowment of the household has a significant effect on&lt;br&gt;
households&amp;rsquo; choice of livelihood strategy and the level of income diversity. They also show&lt;br&gt;
that the effect of asset on livelihood choice and income diversity is dependent on the type of&lt;br&gt;
asset as well as on the particular livelihood strategy. Empirical evidences revealed that farm&lt;br&gt;
land holding, distant to market, involvement in cash crop production, ox holding, use of&lt;br&gt;
agricultural extension and possession of senior secondary education by head lower the&lt;br&gt;
likelihood of involvement in livelihood diversification&lt;/p&gt;</subfield>
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