Determinants of Rural Households Livelihood Diversification: The Case of Libokemkem Woreda, Amhara Region

Dessie, Tezera Mulugeta (2010) Determinants of Rural Households Livelihood Diversification: The Case of Libokemkem Woreda, Amhara Region. Masters thesis, Addis Ababa University.

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Abstract

Most smallholders are unable to make a living from agriculture due to resource constraints and recurrent shocks; they involve in diversified income sources. This study was designed to assess livelihood diversification types and identify determinants of household livelihood diversification in the three kebeles of Libokemkem woreda in Amhara National Regional State. Sustainable livelihoods framework was used to understand determinants of livelihood diversification emphasizing on resources at households disposal. The study findings were drawn from data generated through the combination of both qualitative and quantitative methods. The research employed key informant interview, focus groups discussions, direct observation and in-depth interviews mainly to collect qualitative data, and household survey was also conducted on 102 randomly selected households. The findings of this study revealed that agriculture was not the sole livelihood activity that households in the study areas relied on for their living. Households found to diversify their activities towards off- and non-farm activities to supplement the income gained from farming. The study result showed that about 46% of rural households in study kebeles were involved in a diversified set of activities. Petty trade, self-employment, craftworks, migratory and local labor employments were the major livelihood activities that households in the study areas diversifying. PSNP transfer was also source of income for some 33% of the sample households. However, sample households were found to have different access to non- and off-farm activities depending on proximity of households’ residence to the woreda center and access to physical infrastructure, households’ resource endowments, gender, literacy of household heads and skill training and access to credit. Households who reside close to the woreda center and had better access to road infrastructure and transport service were found to diversify their livelihood activities more than households residing in distant kebeles. It was also observed that households endowed with natural resources better diversified their activities. The relatively wealthy households mainly relied on mixed farming (crop and livestock) and other activities such as petty trading. As poor households were found to be resource poor, they tended less to participate on high return activities. The study also showed that a higher proportion of female headed households found to diversify than their counterparts, but mostly towards low return activities that had low entry barriers. The male headed households diversify relatively to high return activities such as trade and crafts. Literate were found to have better option/choice in the pursuit of livelihood strategies in the study areas and skill training promoted the participation of households in non-farm activities. The participation of poor households in high return income generating activities was found to be poor. This was constrained by multiple factors including poor education and skill training, poor infrastructure mainly road and transportation service and lack of credit. It is important to address the constraints of poor households and widen their access to resources and choice of non farm activities. It requires the improvement of households’ access to education and skill training, financial resources and credit service. Moreover, physical infrastructure such as roads in particular to Michael Debir kebele would help to better access and promote the participation of poor households in non-farm activities. The food security program in the study areas also would have a vital role in providing employment opportunity and in protection of households’ asset depletion and creating asset at community level.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Africana
Depositing User: Geoffrey Obatsa
Date Deposited: 21 May 2019 11:29
Last Modified: 21 May 2019 11:29
URI: http://thesisbank.jhia.ac.ke/id/eprint/9221

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