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Diversification and Livelihood Sustainability in a Semi-Arid Environment: A Case Study from Southern Ethiopia

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Listed:
  • Wassie Berhanu
  • David Colman
  • Bichaka Fayissa

Abstract

This paper examines the recently growing adoption of non-pastoral livelihood strategies among the Borana pastoralists in southern Ethiopia. A large portion of the current non-pastoral participation is in petty and natural resource-based activities. Pastoral and crop production functions are estimated using the Cobb-Douglas model to analyse the economic rationale behind the growing pastoralist shift to cultivation and other non-pastoral activities. The low marginal return to labour in traditional pastoralism suggests the existence of surplus labour that can gainfully be transferred to non-pastoral activities. An examination of the pastoralist activity choices reveals that the younger households with literacy and more exposure to the exchange system display a more diversified income portfolio preference. The findings underscore the importance of human capital investment and related support services for improving the pastoralist capacity to manage risk through welfare-enhancing diversified income portfolio adoption.

Suggested Citation

  • Wassie Berhanu & David Colman & Bichaka Fayissa, 2008. "Diversification and Livelihood Sustainability in a Semi-Arid Environment: A Case Study from Southern Ethiopia," Working Papers 200806, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:200806
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    References listed on IDEAS

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    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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