Determinants of Income Diversification and Its Implication on Rural Households Food Security in Gubalafto Wereda, Northern Ethiopia

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Date

2019-06

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Addis Ababa University

Abstract

Households in rural area face an increasing challenge for alternative income sources to supplement subsistence agricultural activities. The aim of this paper was to examine the determinants of income diversification and its effect on rural households’ food security using a cross sectional data collected from Gubalafto Woreda of North Wollo Zone, Ethiopia. A multi-stage sampling technique was used to select 356 sample households. Structured questionnaire survey was under taken to obtain data pertaining to income diversification and its implication to food security. Additionally, key informant interview, focus group discussion and observation were the principal methods used to generate data. Descriptive statistics, ordered logistic and poison regression model were used to analyze quantitative data. The secondary data was used to support the analysis. The intensity of income diversification was calculated using the Simpson index of diversity. Results of the econometric model indicated that access to credit, access to information, training service and distance (proximate) to market were statistically significant factors at 1% and 5% probability to increase income diversification. Household size, gender (being male) and access to fertilizer and improved seeds were significant and have negative coefficient with 5% level of probability. The strategy of income diversification has significant implication on the food security status of the rural farm households in the study area. Provision of credit, training service, household access to information, engagement of rural households in non-farm income generating activities are recommending in addition to agricultural income sources.

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Keywords

Income diversification, Dietary Diversity, Food Security, Simpson Index of Diversity

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