IDEAS home Printed from https://ideas.repec.org/a/adi/ijbess/v3y2021i2p51-61.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://bussecon.com/ojs/index.php/ijbes/article/view/260/106
    Download Restriction: no
    File URL: https://doi.org/10.36096/ijbes.v3i2.260
    Download Restriction: no
    File URL: https://libkey.io/10.36096/ijbes.v3i2.260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    2. Terfa W. Abraham, 2018. "Estimating the effects of financial access on poor farmers in rural northern Nigeria," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-20, December.
    3. Teferi, Ermias Tesfaye & Kassie, Girma T. & Pe, Mario Enrico & Fadda, Carlo, 2020. "Are farmers willing to pay for climate related traits of wheat? Evidence from rural parts of Ethiopia," Agricultural Systems, Elsevier, vol. 185(C).
    4. Chul‐Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off‐farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    5. Okereke, Chukwumerije & Coke, Alexia & Geebreyesus, Mulu & Ginbo, Tsegaye & Wakeford, Jeremy J. & Mulugetta, Yacob, 2019. "Governing green industrialisation in Africa: Assessing key parameters for a sustainable socio-technical transition in the context of Ethiopia," World Development, Elsevier, vol. 115(C), pages 279-290.
    6. Deborah Naybor & Jessie P. H. Poon & Irene Casas, 2016. "Mobility Disadvantage and Livelihood Opportunities of Marginalized Widowed Women in Rural Uganda," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 106(2), pages 404-412, March.
    7. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
    8. Tomšík, K. & Smutka, L. & Lubanda, J.-P. E. & Rohn, H., 2015. "Position of Agriculture in Sub-Saharan GDP Structure and Economic Performance," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(1), pages 1-12, March.
    9. Atul MEHTA & Joysankar BHATTACHARYA, 2018. "Financial sector development and the poor in developing countries: revisiting the access to finance channel," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(616), A), pages 153-168, Autumn.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kiros Tsegay & Hongzhong Fan & Hailay Shifare & Priyangani Adikari, 2021. "The role of small town in household livelihood diversification in Ethiopia rural areas," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 230-241, October.
    2. Wouter Zant, 2015. "Why Subsidize Fertilizer if Subsidizing Water is More Effective?," Working Papers 2015/09, Maastricht School of Management.
    3. Clay, Nathan & King, Brian, 2019. "Smallholders’ uneven capacities to adapt to climate change amid Africa’s ‘green revolution’: Case study of Rwanda’s crop intensification program," World Development, Elsevier, vol. 116(C), pages 1-14.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    5. Agnes Andersson Djurfeldt & Ola Hall & Aida Isinika & Elibariki Msuya & Genesis Tambang Yengoh, 2020. "Sustainable Agricultural Intensification in Four Tanzanian Villages—A View from the Ground and the Sky," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    6. Eberhardt, Markus & Vollrath, Dietrich, 2018. "The Effect of Agricultural Technology on the Speed of Development," World Development, Elsevier, vol. 109(C), pages 483-496.
    7. Fuyou Tian & Bingfang Wu & Hongwei Zeng & Shukri Ahmed & Nana Yan & Ian White & Miao Zhang & Alfred Stein, 2020. "Identifying the Links Among Poverty, Hydroenergy and Water Use Using Data Mining Methods," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(5), pages 1725-1741, March.
    8. Esther Boere & Aline Mosnier & Géraldine Bocquého & Alessandra Garbero & Tamás Krisztin & Petr Havlik & Thomas Elhaut, 2018. "Developing country-wide farming system typologies," Post-Print hal-01982728, HAL.
    9. Angelo Antoci & Paolo Russu & Elisa Ticci, 2019. "Mining and Local Economies: Dilemma between Environmental Protection and Job Opportunities," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    10. Mutenje, Munyaradzi & Kankwamba, Henry & Mangisonib, Julius & Kassie, Menale, 2016. "Agricultural innovations and food security in Malawi: Gender dynamics, institutions and market implications," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 240-248.
    11. Njoya, Eric Tchouamou & Nikitas, Alexandros, 2020. "The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa," Journal of Transport Geography, Elsevier, vol. 85(C).
    12. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    13. Elisabetta Gotor & Muhammed Abdella Usman & Martina Occelli & Basazen Fantahun & Carlo Fadda & Yosef Gebrehawaryat Kidane & Dejene Mengistu & Afewerki Yohannes Kiros & Jemal Nurhisen Mohammed & Mekone, 2021. "Wheat Varietal Diversification Increases Ethiopian Smallholders’ Food Security: Evidence from a Participatory Development Initiative," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    14. Tanni Roy & Md. Emran Hossain & Md. Jahid Ebn Jalal & Jiban Krishna Saha & Eshrat Sharmin & Md. Akhtaruzzaman Khan, 2021. "Effects of credit on national and agricultural GDP, and poverty: a developing country perspective," SN Business & Economics, Springer, vol. 1(10), pages 1-20, October.
    15. Maisonnave, Hélène & Mamboundou, Pierre Nziengui, 2022. "Agricultural economic reforms, gender inequality and poverty in Senegal," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 361-374.
    16. Adetutu, Morakinyo O. & Ajayi, Victor, 2020. "The impact of domestic and foreign R&D on agricultural productivity in sub-Saharan Africa," World Development, Elsevier, vol. 125(C).
    17. Latruffe, Laure & Mann, Stefan, 2009. "Another look at the distribution of direct payments: The link with part-time farming," Working Papers 210395, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    18. Nyamekye, Isaac & Fiankor, Dela-Dem Doe & Ntoni, Jonathan Okyere, 2016. "Effect Of Human Capital On Maize Productivity In Ghana: A Quantile Regression Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-11, April.
    19. Dorosh, Paul A. & Thurlow, James, 2014. "Beyond agriculture versus nonagriculture: Decomposing sectoral growth–poverty linkages in five African countries:," IFPRI discussion papers 1391, International Food Policy Research Institute (IFPRI).
    20. Zhian Zhiow Augustinne Wong & Ramez Abubakr Badeeb & Abey P. Philip, 2023. "Financial Inclusion, Poverty, and Income Inequality in ASEAN Countries: Does Financial Innovation Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 471-503, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adi:ijbess:v:3:y:2021:i:2:p:51-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ibihutr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.