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

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  • 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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    Cited by:

    1. Hanjra, Munir A. & Ferede, Tadele & Gutta, Debel Gemechu, 2009. "Reducing poverty in sub-Saharan Africa through investments in water and other priorities," Agricultural Water Management, Elsevier, vol. 96(7), pages 1062-1070, July.
    2. Kandulu, John M. & Bryan, Brett A. & King, Darran & Connor, Jeffery D., 2012. "Mitigating economic risk from climate variability in rain-fed agriculture through enterprise mix diversification," Ecological Economics, Elsevier, vol. 79(C), pages 105-112.
    3. Sakketa, Tekalign G. & Kornher, Lukas, 2021. "Unintended Consequences or a Glimmer of Hope? Comparative Impact Analysis of Cash Transfers and Index Insurance on Pastoralists’ Labor Allocation Decisions," 2021 Conference, August 17-31, 2021, Virtual 315113, International Association of Agricultural Economists.
    4. Huixia Zou & Shaowei Li & Huiyuan Zou & Wei Sun & Yingnan Niu & Chengqun Yu, 2022. "Livelihood Sustainability of Herder Households in North Tibet, China," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    5. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    6. Mulwa, Chalmers K. & Visser, Martine, 2020. "Farm diversification as an adaptation strategy to climatic shocks and implications for food security in northern Namibia," World Development, Elsevier, vol. 129(C).
    7. Mati Amano Geleto & Gerald Kapp & Elamin Sanjak, 2023. "Coping with local peoples' livelihood dependence on the transboundary Dinder–Alatish National Parks in Sudan and Ethiopia from the Sudanese Perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3099-3121, April.
    8. Rahut, Dil Bahadur & Scharf, Maja Micevska, 2012. "Livelihood diversification strategies in the Himalayas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 1-25, December.
    9. Hurst, Matthew & Jensen, Nathaniel & Pedersen, Sarah & Shama, Asha & Zambriski, Jennifer, 2012. "Changing Climate Adaptation Strategies of Boran Pastoralists in Southern Ethiopia," MPRA Paper 55865, University Library of Munich, Germany.
    10. Wassie Berhanu & Fekadu Beyene, 2014. "The Impact of Climate Change on Pastoral Production Systems: A Study of Climate Variability and Household Adaptation Strategies in Southern Ethiopian Rangelands," WIDER Working Paper Series wp-2014-028, World Institute for Development Economic Research (UNU-WIDER).
    11. Baird, Timothy D. & Gray, Clark L., 2014. "Livelihood Diversification and Shifting Social Networks of Exchange: A Social Network Transition?," World Development, Elsevier, vol. 60(C), pages 14-30.
    12. Wassie Berhanu & Bichaka Fayissa, 2010. "Analysis of the Household Economy and Expenditure Patterns of a Traditional Pastoralist Society in Southern Ethiopia," Working Papers 201005, Middle Tennessee State University, Department of Economics and Finance.
    13. Riithi, Alexander Njuguna & Irungu, Patrick & Munei , Kimpei, 2015. "Determinants Of Choice Of Alternative Livelihood Diversification Strategies In Solio Resettlement Scheme, Kenya," Dissertations and Theses 269714, University of Nairobi, Department of Agricultural Economics.
    14. Ndiaye, Alioune, 2021. "Diversify or Specialise? Impacts of Diversification on Household Welfare and Inequalities in Pastoral Areas in Senegal," 2021 Conference, August 17-31, 2021, Virtual 315898, International Association of Agricultural Economists.
    15. Berhanu, Wassie & Beyene, Fekadu, 2014. "The impact of climate change on pastoral production systems: A study of climate variability and household adaptation strategies in southern Ethiopian rangelands," WIDER Working Paper Series 028, World Institute for Development Economic Research (UNU-WIDER).
    16. Berhe, Melaku & Hoag, Dana & Tesfay, Girmay & Oniki, Shunji & Kagatsume, Masaru, 2016. "Effects of adaptation to climate change on income of cattle owners in the pastoral and agro-pastoral communities of Northern Ethiopia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246974, African Association of Agricultural Economists (AAAE).
    17. Walelign, Solomon Zena & Jiao, Xi, 2017. "Dynamics of rural livelihoods and environmental reliance: Empirical evidence from Nepal," Forest Policy and Economics, Elsevier, vol. 83(C), pages 199-209.
    18. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    19. Wane, Abdrahmane & Touré, Ibra & Mballo, Aliou Diouf & Nokho, Cheikh Ibrahima & Ndiaye Aminata Konaté, 2017. "Non-livestock value chains. Lateral thinking for the securing of the Sahelian livestock economies," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(2), September.
    20. Véronique Sophie Ávila-Foucat & Daniel Revollo-Fernández & Carolina Navarrete, 2021. "Determinants of Livelihood Diversification: The Case of Community-Based Ecotourism in Oaxaca, Mexico," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    21. Hanjra, Munir A. & Ferede, Tadele & Gutta, Debel Gemechu, 2009. "Pathways to breaking the poverty trap in Ethiopia: Investments in agricultural water, education, and markets," Agricultural Water Management, Elsevier, vol. 96(11), pages 1596-1604, November.
    22. Martin C. Parlasca, 2021. "A vital technology: Review of the literature on mobile phone use among pastoralists," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(4), pages 780-799, May.
    23. Wassie Berhanu & Fekadu Beyene, 2015. "Climate Variability and Household Adaptation Strategies in Southern Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-23, May.
    24. Misganaw Teshager Abeje & Atsushi Tsunekawa & Enyew Adgo & Nigussie Haregeweyn & Zerihun Nigussie & Zemen Ayalew & Asres Elias & Dessalegn Molla & Daregot Berihun, 2019. "Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia," Sustainability, MDPI, vol. 11(10), pages 1-23, May.

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    More about this item

    Keywords

    Pastoralism; Dryland Farming; Diversification; Production Functions; Ethiopia.;
    All these keywords.

    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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