This study presents an empirical analysis of the impact of participation in off-farm activities on household income level in Wolaita zone, southern Ethiopia. The impact of participation in off-farm activities on household income was estimated by using Heckman two-step model. The results of Heckman's two-step model indicated that participation in off-farm activities has a significant impact on annual income of the households. Moreover, the study identified the factors that affect participation of households in off-farm activities. Consequently, the probit model result revealed that age of the household head, sex of the household head, marital status, distance to the nearest market, agro-ecological zone, credit access, livestock ownership, the amount of farm income, and having mobile phone were key factors that influence participation of households in off-farm activities. With regard to results of Heckman's two-step model, the participation in off-farm activities, education level of the household head, and agro-ecological zone were found to be the main factors that affect households' total income level. The positive and significant effect of off-farm activities on total income of the rural households calls for policy measures in order to pave the way to expand off-farm activities so as to bring a substantial contribution to the living standard of the rural society.
Abstract:This study attempts to determine the economic value of improved irrigation water by eliciting farmers' willingness to pay (WTP) using contingent valuation method in Bahir Dar Zuria Woreda, Ethiopia. Single bounded and double bounded dichotomous choices with a follow up open ended questions were employed. Primary data obtained from 197 randomly sampled household heads was analyzed using both descriptive statistics and Econometric models. The descriptive analysis indicates that the mean annual income of the irrigators is twice more than that of non-irrigators. In this study, Probit and Bivariate Probit models were used to measure WTP and to determine the factors that influence the variation in WTP. To identify the basic determinants of maximum WTP, the author also used Tobit model. The mean willingness to pay for the provision of improved irrigation water is found to be birr 674.5 and 579 per year/0.25 ha from the double bounded dichotomous choice and open-ended questions, respectively. Consequently, the aggregate willingness to pay for improved irrigation water supply using the double bounded dichotomous choice and open ended questions is estimated about birr 15,703,709 and 13,480,278 per year, respectively. Among the surveyed households, 99 percent have shown their willingness to pay if there is an improvement in existing irrigation water supply. Thus, the result of this study suggests that it may be a good indicator for investment to expand the current irrigation projects and introducing irrigation water pricing.
The major aim of this study was to assess the socioeconomic determinants of food insecurity among rural households in Wolaita Zone, Southern Ethiopia. Data for the study was obtained from 168 randomly selected rural households by using an interview schedule. To select sample respondents, the multi-stage sampling technique was used. The Foster-Greer-Thorbecke (FGT) index and binary logistic regression model were used for data analysis. The finding from FGT index showed that about 66.1 percent of households in the study area were found food insecure and the remaining 33.9 percent were found food secure. The depth and severity of food insecurity were found 15 percent and 4.6 percent, respectively. The logistic regression model result revealed that factors such as land size, income from productive safety net program, credit access, farm income, and non-farm income are the statistically significant factors influencing the households' food insecurity status. Accordingly, access to credit positively affects households' food insecurity status, whereas the other significant variables affect it negatively. Consequently, improving productivity of land through better production methods, increasing farmers' participation in safety net programs, Promoting income diversification, Revising credit repayment policies and promoting rural off-farm employment opportunities are suggested to improve the state of food insecurity in the study area.
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