Rural income diversification in Ethiopia: Drivers and welfare impact
Diversification of rural households into the nonfarm economy is a key driver of economic growth and structural transformation in countries where agriculture remains the primary source of livelihood. This study examines trends and patterns of income diversification, its determinants, and its associat...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Elsevier
2025
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/177081 |
| _version_ | 1855535126615687168 |
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| author | Abate, Gashaw T. Bachewe, Fantu Nisrane Regassa, Mekdim D. Minot, Nicholas |
| author_browse | Abate, Gashaw T. Bachewe, Fantu Nisrane Minot, Nicholas Regassa, Mekdim D. |
| author_facet | Abate, Gashaw T. Bachewe, Fantu Nisrane Regassa, Mekdim D. Minot, Nicholas |
| author_sort | Abate, Gashaw T. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Diversification of rural households into the nonfarm economy is a key driver of economic growth and structural transformation in countries where agriculture remains the primary source of livelihood. This study examines trends and patterns of income diversification, its determinants, and its association with household welfare in rural Ethiopia. Our analysis indicates that rural households in Ethiopia continued to rely primarily on farming, with only marginal diversification of income sources during 2012–2019, despite the broader context of rapid economic growth. Crop production remains the main source of income, followed by livestock, while nonfarm activities contribute 17–24% of total household income. Factor endowments and local conditions, including rainfall, play a crucial role in shaping diversification decisions. In particular, the 2015–16 drought appears to have pushed households to increase engagement in nonfarm income-generating activities. Importantly, income diversification is associated with higher household consumption, improved dietary diversity, and better housing quality, highlighting the potential of expanding the rural nonfarm economy to enhance household welfare. |
| format | Journal Article |
| id | CGSpace177081 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1770812025-12-08T09:54:28Z Rural income diversification in Ethiopia: Drivers and welfare impact Abate, Gashaw T. Bachewe, Fantu Nisrane Regassa, Mekdim D. Minot, Nicholas rural areas income income distribution farm income household income nonfarm income welfare Diversification of rural households into the nonfarm economy is a key driver of economic growth and structural transformation in countries where agriculture remains the primary source of livelihood. This study examines trends and patterns of income diversification, its determinants, and its association with household welfare in rural Ethiopia. Our analysis indicates that rural households in Ethiopia continued to rely primarily on farming, with only marginal diversification of income sources during 2012–2019, despite the broader context of rapid economic growth. Crop production remains the main source of income, followed by livestock, while nonfarm activities contribute 17–24% of total household income. Factor endowments and local conditions, including rainfall, play a crucial role in shaping diversification decisions. In particular, the 2015–16 drought appears to have pushed households to increase engagement in nonfarm income-generating activities. Importantly, income diversification is associated with higher household consumption, improved dietary diversity, and better housing quality, highlighting the potential of expanding the rural nonfarm economy to enhance household welfare. 2025-10 2025-10-14T17:44:51Z 2025-10-14T17:44:51Z Journal Article https://hdl.handle.net/10568/177081 en https://doi.org/10.2499/p15738coll2.136494 https://doi.org/10.2499/p15738coll2.136460 Open Access Elsevier Abate, Gashaw T.; Bachewe, Fantu Nisrane; Regassa, Mekdim D.; and Minot, Nicholas. 2025. Rural income diversification in Ethiopia: Drivers and welfare impact. Food Policy 136(October 2025): 102978. https://doi.org/10.1016/j.foodpol.2025.102978 |
| spellingShingle | rural areas income income distribution farm income household income nonfarm income welfare Abate, Gashaw T. Bachewe, Fantu Nisrane Regassa, Mekdim D. Minot, Nicholas Rural income diversification in Ethiopia: Drivers and welfare impact |
| title | Rural income diversification in Ethiopia: Drivers and welfare impact |
| title_full | Rural income diversification in Ethiopia: Drivers and welfare impact |
| title_fullStr | Rural income diversification in Ethiopia: Drivers and welfare impact |
| title_full_unstemmed | Rural income diversification in Ethiopia: Drivers and welfare impact |
| title_short | Rural income diversification in Ethiopia: Drivers and welfare impact |
| title_sort | rural income diversification in ethiopia drivers and welfare impact |
| topic | rural areas income income distribution farm income household income nonfarm income welfare |
| url | https://hdl.handle.net/10568/177081 |
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