RURAL LIVELIHOOD DIVERSFICATION STRATEGIES IN ENEBSIE SAR MIDIR WOREDA, EAST GOJJAM, AMHARA REGION, ETHIOPIA

Abstract

The choice of rural farm households to diverse livelihood strategies were affected by unidentified factors in Enebsie Sar Midir Woreda. Thus, the aim of this study was to analyze determinants of livelihood diversification strategies choice. A total of 206 sample household heads were selected through multi-stage sampling procedure. Primary data were collected through respondent interviews, key informants interview and focus group discussions whereas secondary data were collected from reports from Woreda documents, journals and recognized unpublished master thesis. The data analysis method includes descriptive statistics (like mean, sum, percentage, frequency and, inferential statistics like Chi-square test and F-test) and multinomial logit model. The survey result indicated that 54.4% of the respondents choose farm only, 13.1% farm plus off-farm, 17% farm plus non-farm and the remaining 15.5% of the respondents choose farm plus off-farm plus non-farm strategy. The chi-square test shows sex, education, credit, agricultural risk and safety net were significantly different among different livelihood strategies up to 10% significance level. Whereas F-test indicate that age, land size, market distance and total cash saved income were significantly different among different livelihood strategies up to 10% significance levels. The annual contribution of farm only, off-farm and non-farm strategy accounts 90.95%, 2.02 and 7.03% of the total annual income respectively. Multinomial logit model result indicate that sex, household size, dependency ratio, education, land size, market distance, credit, livestock holding and agriculture risk were significant determinants of livelihood diversification strategies choice up to 10% level of significance. The result of this study suggests that the government and responsible bodies should arrange training and creation of employment opportunities to encourage the rural households to choice livelihood diversification strategies.