IDEAS home Printed from https://ideas.repec.org/a/ags/pojard/356125.html
   My bibliography  Save this article

Non-farm livelihood diversification: strategies and constraints in selected rural and peri-urban communities, Ghana

Author

Listed:
  • Asare, Kofi Yeboah
  • Koomson, Frederick
  • Agyenim, Joseph Boateng

Abstract

Non-farm livelihood diversification is an important livelihood strategy for rural households in Sub-Saharan Africa. However, the available evidence suggests that these strategies have received less attention; therefore, the constraints rural people face in venturing into the non-farm sector also remain unaddressed. In order to understand the livelihood strategies and constraints in the sector, this paper used crosssectional survey data from 251 randomly sampled farmers from the Sunyani West District, Ghana. Focus Group Discussions were also conducted in order to collect qualitative data to support quantitative analysis. The data were analyzed using descriptive statistics: frequencies, percentages and cross tabulation. The study found that the non-farm sector was heterogeneous and highly gendered and involved several activities, with trading being the most prominent one. Gender disaggregation of non-farm activities has underlying cultural and social bases resulting in different production roles for males and females. Although farmers are predominantly engaged in farming as their major livelihood strategy, they also pursue non-farm livelihood activities due to push, rather than pull, factors. Inadequate access to credit and limited business opportunities were the major constraints impeding the development of the non-farm sector in the district. In order to propel rural development, policy makers and researchers should give attention to the development of the non-farm sector since it is an important source of income for many people. Apart from that, the study recommends that banking and micro-finance institutions design special credit programmes for rural people.

Suggested Citation

  • Asare, Kofi Yeboah & Koomson, Frederick & Agyenim, Joseph Boateng, 2021. "Non-farm livelihood diversification: strategies and constraints in selected rural and peri-urban communities, Ghana," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 59(1), January.
    • Handle: RePEc:ags:pojard:356125
    DOI: 10.22004/ag.econ.356125
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/356125/files/Non-farm.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.356125?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. Frank Ellis & H Ade Freeman, 2004. "Rural Livelihoods and Poverty Reduction Strategies in Four African Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 1-30.
    2. Bhaumik, Sumon Kumar & Dimova, Ralitza & Nugent, Jeffrey B., 2011. "Off-farm labor supply and labor markets in rapidly changing circumstances: Bulgaria during transition," Economic Systems, Elsevier, vol. 35(3), pages 378-389, September.
    3. Alberto Isgut, 2004. "Non-farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 59-86.
    4. Aziz Atamanov & Marrit Van den Berg, 2012. "Participation and returns in rural nonfarm activities: evidence from the Kyrgyz Republic," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 459-471, July.
    5. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    6. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    7. Rijkers, Bob & Söderbom, Måns, 2013. "The Effects of Risk and Shocks on Non-Farm Enterprise Development in Rural Ethiopia," World Development, Elsevier, vol. 45(C), pages 119-136.
    8. Asare, Kofi Yeboah & Koomson, Frederick & Agyenim, Joseph Boateng, 2021. "Non-farm livelihood diversification: strategies and constraints in selected rural and peri-urban communities, Ghana," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 59(1), January.
    9. Marrit Van Den Berg & Girma Earo Kumbi, 2006. "Poverty and the rural nonfarm economy in Oromia, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 469-475, November.
    10. Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
    11. Talip Kilic & Calogero Carletto & Juna Miluka & Sara Savastano, 2009. "Rural nonfarm income and its impact on agriculture: evidence from Albania," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 139-160, March.
    12. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    13. repec:bla:devpol:v:22:y:2004:i:2:p:147-171 is not listed on IDEAS
    14. Owusu, Victor & Abdulai, Awudu & Abdul-Rahman, Seini, 2011. "Non-farm work and food security among farm households in Northern Ghana," Food Policy, Elsevier, vol. 36(2), pages 108-118, April.
    15. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    16. nan, 2007. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8664-5 edited by Haggblade, Steven; Hazell, Peter B. R.; Reardon, Thomas Anthony.
    17. Mohammad Abdul Malek & Koichi Usami, 2009. "Determinants of Non-farm Income Diversification in Developed Villages of Bangladesh," American Journal of Economics and Business Administration, Science Publications, vol. 1(2), pages 141-149, June.
    18. Jana Fritzsch, 2012. "Is non-farm income diversification a feasible option for small-scale farmers? An assessment using a composite fuzzy indicator," Post-Communist Economies, Taylor & Francis Journals, vol. 24(3), pages 403-417, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asare, Kofi Yeboah & Koomson, Frederick & Agyenim, Joseph Boateng, 2021. "Non-farm livelihood diversification: strategies and constraints in selected rural and peri-urban communities, Ghana," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 59(1), January.

    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. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    2. Muhammad Amjed Iqbal & Muhammad Rizwan & Azhar Abbas & Muhammad Sohail Amjad Makhdum & Rakhshanda Kousar & Muhammad Nazam & Abdus Samie & Nasir Nadeem, 2021. "A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    3. Bethuel Kinuthia & Abdelkrim Araar & Laura Barasa & Stephene Maende & Faith Mariera, 2019. "Off-Farm Participation, Agricultural Production and Farmers’ Welfare in Tanzania and Uganda," Working Papers PMMA 2019-01, PEP-PMMA.
    4. Iravani, Samaneh & Kakhki, Mahmoud Daeshvar & Ghorbani, Mohammad & Karbasi, Alireza, 2019. "Determinants of Rural Non-Farm Employment in Neyshabur: Application of Multilevel Multinomial Logit Model," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    5. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series wp-2017-38, World Institute for Development Economic Research (UNU-WIDER).
    6. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).
    7. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    8. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    9. Nkechi S. Owoo & Wim Naudé, 2017. "Spatial proximity and firm performance: evidence from non-farm rural enterprises in Ethiopia and Nigeria," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 688-700, May.
    10. Atamanov, Aziz & Van den Berg, Marrit, 2012. "Determinants of the rural nonfarm economy in Tajikistan," MERIT Working Papers 2012-080, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Bezu, Sosina & Holden, Stein, 2014. "Are Rural Youth in Ethiopia Abandoning Agriculture?," World Development, Elsevier, vol. 64(C), pages 259-272.
    12. Mintewab Bezabih & Andrea Mannberg & Eyerusalem Siba, 2014. "The land certification program and off-farm employment in Ethiopia," GRI Working Papers 168, Grantham Research Institute on Climate Change and the Environment.
    13. Getahun, Tigabu & Fetene, Gebeyehu, 2022. "Determinants of Participation in Rural Off-Farm Activities and Its Effects on Food Shortage, Relative Deprivation and Diet Diversity," Discussion Papers 319328, University of Bonn, Center for Development Research (ZEF).
    14. Binswanger-Mkhize, Hans P. & Johnson, Timothy & Samboko, Paul Chimuka & You, Liangzhi, 2016. "The impact of urban growth on agricultural and rural non-farm growth in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249274, African Association of Agricultural Economists (AAAE).
    15. Bezu, Sosina & Barrett, Christopher B., 2010. "Activity Choice in Rural Non-farm Employment (RNFE): Survival versus accumulative strategy," MPRA Paper 55034, University Library of Munich, Germany.
    16. Nandika S. Kumanayake & Jonna P. Estudillo & Keijiro Otsuka, 2014. "Changing Sources of Household Income, Poverty, and Sectoral Inequality in Sri Lanka, 1990–2006," The Developing Economies, Institute of Developing Economies, vol. 52(1), pages 26-51, March.
    17. Mamoudou Ba & Amar Anwar & Mazhar Mughal, 2021. "Non‐farm employment and poverty reduction in Mauritania," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 490-514, April.
    18. Benjamin Davis & Paul Winters & Thomas Reardon & Kostas Stamoulis, 2009. "Rural nonfarm employment and farming: household‐level linkages," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 119-123, March.
    19. Mondal, Ripon Kumar & Selvanathan, Eliyathamby A & Selvanathan, Saroja, 2020. "The impact of rural nonfarm employment on agricultural input use and productivity in Bangladesh," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305251, Australian Agricultural and Resource Economics Society.
    20. Dzanku, Fred Mawunyo, 2018. "The gender and geography of rural off-farm employment and input intensification in five sub-Saharan African countries," Food Policy, Elsevier, vol. 75(C), pages 37-51.

    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:ags:pojard:356125. 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: AgEcon Search (email available below). General contact details of provider: http://www.jard.edu.pl/en/main .

    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.