Diverse set of income generating activities may have varying effect on household’s welfare situation. This study intends to assess the extent of different income diversification strategies on rural household welfare. A total sample of 153 households from three districts of Bangladesh was randomly selected. Considering simultaneous causality between different livelihood strategies and welfare indicators, the Two Stage Least Square (2SLS) methods with instrumental variable was applied to estimate impact of the strategies on household welfare. Household per capita expenditure was treated as the welfare indicator which includes both food and non-food expenditures. The findings show that involving in any type of non-farm activities jointly with farming has a significantly positive effect on the household’s welfare. Among different non-farm activities, participation in wage employment and migration along with agricultural activities ensured significantly higher per capita household expenditure. On the other hand, the impact of currently participation in only agricultural activities on household expenditure is insignificant. Besides, Farm size, higher education and infrastructural facilities also play an important role in improving household’s welfare. Therefore, policy should be directed to create opportunities to participate in non-farm activities through establishment of small and medium industries, especially agro-based industries in the rural areas. J. Bangladesh Agril. Univ. 17(1): 73–79, March 2019
Buffalo Development Project, Bangladesh Livestock Research Institute, Savar, Dhaka, Bangladesh This study attempts to estimate the income from native poultry production and analyze the efficiency of resources used covering three coastal districts of Bangladesh namely Noakhali, Patuakhali and Satkhira. A total of 180 poultry rearers were selected from different villages of the districts using purposive sampling technique. Primary and secondary data were collected and analyzed following a combination of descriptive statistics, sensitivity analysis, statistical model and mathematical technique. Gross and net returns per household per day from native poultry rearing were estimated at Tk. 34.04 and Tk. 27.93, respectively. The undiscounted benefit cost ratio was 5.57, implying that this enterprise is highly profitable. Moreover, the contribution from poultry rearing to total income was 8.25 percent. Sensitivity analysis shows that the gross margins and benefit cost ratios were strongly influenced by the factors such as the cost of inputs, price of outputs and poultry inventory. Multiple Regression model revealed that almost all variables were influenced income from native poultry farming except rearing cost. Increasing returns to scale was found which indicates that there was bright prospect to earn more through the use of more inputs in the production process. Finally, a number of problems faced by the poultry farmers were identified and some suggestions were recommended accordingly.
The pervasiveness of poverty continues to be a daunting challenge for Bangladesh. This study attempts to examine the effect of different livelihood diversification on rural household poverty and income inequality. A panel dataset, which is used in this study, was collected in the three different years (1988, 2000 and 2008) from 62 villages across 57 districts of Bangladesh. Besides, 153 households from three districts of Bangladesh were also randomly selected as primary data. Multidimensional poverty index (MPI) was used to measure poverty whereas Gini coefficients and decomposition of Gini coefficients were used to measure inequality and to identify marginal effects of certain livelihood income source on total inequality. The results reveal that diversifying livelihood through income source changes has an impact on the poverty level and inequality among rural households. Following these changes, the overall poverty situation has been improving and income distribution has been worsening over the years. Households drastically reduce their poverty by diversifying their livelihood from only agriculture to part-time farming. Among different non-farm income sources, only self-employment has a positive contribution in decreasing income inequality since 2000. Incomes from migration and wage-employment widen income inequality in rural Bangladesh. Therefore, policy options should strive to expand rural industry and scope of self-employment in the rural areas along with agricultural sector development.
Over the last few decades, Bangladesh has experienced significant structural changes within the agricultural sector. This research estimates the current and forecasts the future changes of farm size and labor occupational mobility over time and across the region. A panel dataset, which is used in this study, was collected in the three different years (1988, 2000 and 2008) from 62 villages across 57 districts. Stationary Markov chain approach was used in this analysis to estimate structural change. The results of this study imply that the agricultural sector is dominated by small farms in past, present and also in the future. The forecasting predicts that the numbers of marginal, medium and large farms are going to decrease in future. Moreover, it indicates that the average farm size of small landholders will slightly increase as the numbers of marginal and large landowners reduces. The analyses of the transition probabilities of labor occupational change show that rural households are gradually shifting to non-farm activities and mostly part-time farming from other income generating activities over time. In general, the forecast also suggests narrowing of agricultural activities and expansion of part-time farming and non-farm activities in future.
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