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Smallholder farmersù household wealth and livelihood choices in developing countries: A Sri Lankan case study

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  • Jagath C. Edirisinghe

Abstract

Smallholder farmersù household asset based wealth indicators purport to show long-run economic well-being. This paper argues that such well-being is contingent on the ølivelihood strategiesù of households and specifically focuses on the impact of off-farm income strategies on wealth. Using a sample of 4861 Sri Lankan agricultural households, a set of ølivelihood strategiesù was developed from income share data by employing cluster analysis. These ølivelihood strategiesù are related to a wealth index developed from a principal component analysis using a set of quantile regressions. The results show that the effect of off-farm income on wealth is similar to most other strategies at lower wealth quantiles (poor farmers), but becomes weaker at higher quantiles of wealth.

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  • Jagath C. Edirisinghe, 2015. "Smallholder farmersù household wealth and livelihood choices in developing countries: A Sri Lankan case study," Economic Analysis and Policy, Elsevier, vol. 45(c), pages 33-38.
    • Handle: RePEc:eee:ecanpo:v:45:y:2015:i:c:p:33-38
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    Cited by:

    1. Tran, Tuyen Quang & Vu, Huong Van, 2020. "The pro-poor impact of non-crop livelihood activities in rural Vietnam: A panel data quantile regression analysis," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 348-362.
    2. Libang Ma & Shichun Liu & Yiwen Niu & Meimei Chen, 2018. "Village-Scale Livelihood Change and the Response of Rural Settlement Land Use: Sihe Village of Tongwei County in Mid-Gansu Loess Hilly Region as an Example," IJERPH, MDPI, vol. 15(9), pages 1-25, August.
    3. Grote, U. & Nguyen, T.T., 2018. "Natural resource extraction and household welfare in rural Laos," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277061, International Association of Agricultural Economists.
    4. Lalani, Baqir & Dorward, Peter & Holloway, Garth, 2017. "Farm-level Economic Analysis - Is Conservation Agriculture Helping the Poor?," Ecological Economics, Elsevier, vol. 141(C), pages 144-153.
    5. Tran, Tuyen & Vu, Huong, 2019. "Heterogeneous effects of livelihood strategies on household well-being: An analysis using unconditional quantile regression with fixed effects," MPRA Paper 103849, University Library of Munich, Germany, revised 20 Jan 2020.
    6. Nguyen, Trung Thanh & Do, Truong Lam & Parvathi, Priyanka & Wossink, Ada & Grote, Ulrike, 2018. "Farm production efficiency and natural forest extraction: Evidence from Cambodia," Land Use Policy, Elsevier, vol. 71(C), pages 480-493.
    7. Lalani, Baqir & Dorward, Peter & Holloway, Garth & Wauters, Erwin, 2016. "Smallholder farmers' motivations for using Conservation Agriculture and the roles of yield, labour and soil fertility in decision making," Agricultural Systems, Elsevier, vol. 146(C), pages 80-90.

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