Smallholder Farmers’ Participation In Off-Farm Activities. The Case Of Bambasi Wereda, Benishangul Gumuz Regional State, Ethiopia

Master's Thesis , 2020 , 88 Pages , Grade: 4.00

Economics - Macro-economics, general

This study focuses on the analysis of off-farm participation of smallholder farmer’s of the study area. A cross-sectional sampling procedure was employed to draw data from a random sample of 248 respondents. A two-stage Heckman model was used to investigate determinants of off-farm participation decision and intensity of off-farm participation. The assessment of impact of participation of off-farm activities on income of smallholder farmers have been addressed through estimating the average treatment effect by using the estimated propensity score matching.

The Majority of the world’s poor live in rural areas of developing countries are depending on agriculture and its related activities as a source of livelihood. But agriculture alone cannot provide sufficient livelihood opportunities to sustain life. There are other methods to supplement agriculture like, rural off-farm activities. The result of the two-stage Heckman model and estimate of average treatment effect (ATE) revealed variables that affect off-farm participation and intensity of off-farm participation. Also, the estimate of average treatment effect indicated that off-farm participation have a significant and positive impact on income of smallholder farmers of the study area. In the policy implications, it was recommended that implementation of Strategies that direct on the improvement of educational status of rural farmers, Policies that focus on increasing the farm incomes of the smallholders through intensive farming systems and raising their market bargaining power, the creation of conductive environment for the development of off-farm activities and implementation of Policies that encourage more participation of youth age than the old ages on off-farm activities.

Inhaltsverzeichnis (Table of Contents)

• CHAPTER ONE
  • INTRODUCTION
  • 1.1. Background of the Study
  • 1.2. Statement of the Problem
  • 1.3. Research Questions
  • 1.4. Objectives of the Study
  • 1.5. Significance of the Study
  • 1.6. Scope of the Study
  • 1.7. Organization of the Study
• CHAPTER TWO
  • LITERETURE REVIEW
  • 2.1. Theoretical Review
    • 2.1.1. Definition of Terms
    • 2.1.2. Motives of Livelihood Diversification
    • 2.1.3. Overview of Livelihood Diversification in Africa
    • 2.1.2.Theoretical Framework of Modeling Selection Bias
  • 2.2. Empirical Studies
  • 2.3. Conceptual Framework
• CHAPTER THREE
  • METHODOLOGY OF THE STUDY
  • 3.1. Description of the Study Area
  • 3.2. Sampling Design
    • 3.2. Sample Size Determination
  • 3.3. Method of Data Collection
  • 3.4. Methods of Data Analysis
    • 3.4.1. Models Specification
  • 3.5. Assumption in Treatment Effects Estimation
• CHAPTER FOUR
  • RESULTS AND DISCUSSION
  • 4.1. DESCRIPTIVE STATISTICS
    • 4.1.1. Demographic Characteristics of Off-farm Activities Participants
    • 4.1.2. Gender and Marital Status Distribution of Respondents
    • 4.1.3. Distribution of Assets
    • 4.1.4. Farm Land Possession and Market Distance
    • 4.1.5. Types of Off-farm Activities in Bambasi Wereda
    • 4.1.6. Work Places of Off-farm Activities and its Motives
    • 4.1.7. Distribution of Income Among Participants and Non-participants
    • 4.1.8. Empirical Estimation Procedure and Hypothesis Testing
  • 4.2. ECONOMETRIC ANALYSIS
    • 4.2.1. Heckman Sample Selection Model Estimation
    • 4.2.2. Determinants of Off-Farm Participation Decision
    • 4.2.3. Intensity of Off-Farm Participation
    • 4.2.3. Impact of Off-farm Participation on Income of Smallholder Farmers

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This MSc thesis aims to analyze the participation of smallholder farmers in off-farm activities in Bambasi Wereda, Benishangul Gumuz Regional State, Ethiopia. The study seeks to understand the factors influencing participation in these activities and their impact on the income of smallholder farmers.

• Factors influencing smallholder farmers' participation in off-farm activities.
• The impact of off-farm participation on smallholder farmer income.
• The relationship between off-farm participation and livelihood diversification strategies.
• The role of government policies and programs in supporting off-farm activities.
• The challenges and opportunities faced by smallholder farmers engaging in off-farm activities.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter One: Introduction provides a background of the study, outlines the statement of the problem, research questions, objectives, significance, scope, and organization of the study.
• Chapter Two: Literature Review presents a theoretical review of livelihood diversification, motives for participation, and an overview of livelihood diversification in Africa. It also includes empirical studies and a conceptual framework for the study.
• Chapter Three: Methodology of the Study describes the study area, sampling design, method of data collection, and methods of data analysis. It includes details about the models used and assumptions made in the analysis.
• Chapter Four: Results and Discussion presents descriptive statistics on the demographic characteristics of off-farm activities participants and the distribution of assets. This chapter will also delve into the econometric analysis of the determinants of off-farm participation and its impact on income.

Schlüsselwörter (Keywords)

The main keywords and focus topics of this study include smallholder farmers, off-farm activities, livelihood diversification, income, participation decisions, Heckman model, Ethiopia, Bambasi Wereda, Benishangul Gumuz Regional State. These terms are essential for understanding the research focus, themes, and core concepts of the thesis.

• Course: Developmental Economics
• Grade: 4.00
• Author: Amanuel Misgana (Author)
• Publication Year: 2020
• Pages: 88
• Catalog Number: V984842
• ISBN (eBook): 9783346349194
• ISBN (Book): 9783346349200
• Language: English
• Tags: smallholder, farmers’, participation, off-farm, activities, case, bambasi, wereda, benishangul, gumuz, regional, state, ethiopia