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|Title: ||A CASE STUDY OF NON-FARM RURAL LIVELIHOOD DIVERSIFICATION IN LUME WOREDA, OROMIYA REGINONAL STATE|
|Authors: ||FIKRU, TESFAYE|
|Advisors: ||Dr. Degefa Tolossa|
|Copyright: ||2008 |
|Date Added: ||26-Dec-2008 |
|Publisher: ||Addis Ababa University|
|Abstract: ||The objective of this thesis was to examine, on a case study basis, dominant patterns of
non-farm rural diversification and identify and analyze the key constraints and
opportunities as well as the determinants and principal motivations behind non-farm
A blend of qualitative and quantitative methods was used where structured household
questionnaire survey, qualitative investigation and participatory assessment was
combined with a review of previous researches on the subject at local and developing
Generally, the study showed that rural households in the study Kebeles have diversified
incomes, engage in diversified activities, and non-farm livelihood diversification is
The results indicated that diversification into low-entry-barrier, low-return activities
predominate. Diversification into high value, high return activities are virtually absent.
Micro-enterprise based diversification, while generally limited, is dominated by pettytrade
and household-level small-scale activities. Manufacturing comprises a negligible
part of all non-farm activities.
Lack of access to sufficient fixed and working capital is a major constraint to undertake
high-return non-farm activities. Poor infrastructure, especially lack of electricity, is also
found to constrain diversification. Diversification among the ‘farm-rich’ was found to be
very uncommon. The greatest extent of diversification was amongst the ‘poor’ and
‘medium’ inhabitants. Although tenural security is hardly a problem, diversification in
the study sites is to a great extent associated with negative circumstances related to
landlessness, especially among the youth.
The results also indicated that diversification is significantly influenced by household
head education and age. Other household characteristics, though positively or negatively
associated with diversification, are not found to significantly influence diversification.
This study has also confirmed the empirical findings of many other studies that an
increase in income diversification leads to a rise in total income.
The impact of proximity to urban center on diversification is found to be negative.
Institutional ownership of the non-farm economy lacks while proclamations and
regulations on land use and investment gloss over non-farm activities. Diversification
among the poor is enhanced by access to natural resources as evidenced by significant
participation of unemployed and landless persons in river sand and stone quarrying as
well as pottery in the study sites.|
|Description: ||A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
THE DEGREE OF MASTER OF ARTS IN DEVELOPMENT STUDIES|
|Appears in:||Thesis - Eniviroment & Development|
Thesis - Eniviroment & Development
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