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Does credit access matter for household livelihood diversification in Ethiopia?An evidence from logistic regression model

Author

Listed:
  • Kiros Tsegay

    (School of Economics, Huazhong University of Science and Technology, Wuhan, 430074, China)

  • Hongzhong Fan

    (School of Economics, Huazhong University of Science and Technology, Wuhan, 430074, China)

  • Hailay Shifare

    (School of Public Administration, Huazhong University of Science and Technology, Wuhan 430074, China)

  • Priyangani Adikari

    (Department of Economics Faculty of Social Sciences and Humanities, Rajarata university of Sri Lanka, 50300, Mihintale, Sri Lank)

Abstract

This study examines the effect of credit access on both agricultural and off-farm activities based on a household survey of 371 rural farmer respondents in Ethiopia.it was analyzed using a logistic regression model and statistical description. Findings demonstrated that the demographic factors; gender, age, level of education, and family size have a positive and significant effect on credit access. Agricultural credit access is impacted by each of the demographic variables as independent variables. On the other hand, the result indicated that the relationship between credit access and non-farm economic activities has a negative relationship. Credit access has a significant effect on agricultural intensification and specialization rather than diversification. Therefore, a comprehensive policy and strategy needs for credit access in both the agricultural and non-agricultural sectors. The Ethiopian government should follow the integration policy between both sectors and participate in livelihood diversification strategies and achieve sustainable development goals by 2030 at large.

Suggested Citation

  • Kiros Tsegay & Hongzhong Fan & Hailay Shifare & Priyangani Adikari, 2021. "Does credit access matter for household livelihood diversification in Ethiopia?An evidence from logistic regression model," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 3(2), pages 51-61, April.
    • Handle: RePEc:adi:ijbess:v:3:y:2021:i:2:p:51-61
    DOI: 10.36096/ijbes.v3i2.260
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