The Choices of Livelihood Diversification Strategies and Determinant Factors Among the Peri-Urban Households in Amhara Regional State, Ethiopia

Figures & data

Figure 1. Livelihood frame work depicting interplay between environment and community.

Source: Adapted from DFID, 2009.

Figure 2. Map of the study areas.

Source: - Coordinate system: WGS 1984 UTM Zone 37N; Projection: Transverse Mercator; Datum: WGS 1984; Unit: Meter

Table 1. Distribution of sample households by municipalities

Municipality	Peri-urban Kebele	Target population	Selected respondents
Burie	Wan gedam	846	39
	Fereswega	777	36
	Wundigi	543	25
	Derequa mewucha	761	35
Injibara	Besena-basa −01	971	45
	Bahunk Michael- 02	1134	53
	Charate gebriel-03	806	37
	Akaita-04	748	35
	Abo gumbi-05	672	31
Gish Abay	Abay	466	31
	Sangib	340	25
Total		8060	393

Source: Each municipality’s documentation, 2022

Table 2. Summary of Definition of explanatory variables of MNL model

Variable	Description	Indicator	hypothesized sign	Relevant literatures	hypothesized sign
Sex	Sex of the household head	female 1 and; 0 otherwise	+ve/male	Tassie Wegedie and Duan (2018); Kassie (2018); Yussuf and Mohamed (2022);Yussuf and Mohamed (2022)	+ve/male
Age	Age of the household head	Age in years	-	Yussuf and Mohamed (2022); Abera et al. (2021); Ayana et al. (2022); Gebru et al. (2018a)	-ve
depend	Dependency ratio	Proportion of unproductive to total productive labor force in the household members	-	Yussuf and Mohamed (2022); Ayana et al. (2022); Gebru et al. (2018b)	-ve
landsize	Total land size the household owns	Total land holding	-	Abera et al. (2021); Ayana et al. (2022);Gebru et al. (2018b)	-ve
EDU	Education status of the household head	Years of schooling	+	Yussuf and Mohamed (2022); Ayana et al. (2022); Gebru et al. (2018b)	+ve
TLU	Tropical Livestock Unit	Total number of livestocks the household owns	±	Abera et al. (2021); Ayana et al. (2022)	±ve
famil	Family size of the household	Family size in the household converted to adult equivalent		Abera et al. (2021); Gemeda et al. (2023)	+ve
dismkt	Distance of the household residence from market place	Distance in kilometers		Yussuf and Mohamed (2022); Ayana et al. (2022); Abera et al. (2021)
accextn	Access to extension service the household obtained for the last 12 months	Access to extension service:1 if yes; 0 otherwise:	+	Abera et al. (2021); Ayana et al. (2022); Gebru et al. (2018b)	+ve
exposhock	Exposure to shock the household encountered for the past 12 months	Occurrence of risk: 1 if yes; 0 otherwise	±	Yizengaw (2014); Mezgebo and Shaughnessy (2014)	±ve
accpsnp	Access to productive safety net Programme	Access of productive safety net Programme	+	Yussuf and Mohamed (2022)	+ve
leadership	Participation in community leadership	Participation: 1 if yes; 0 otherwise	+	Abera et al. (2021)	+ve
acctrain	Access to training	Access to training: 1 is yes; 0 otherwise	+	Abera et al. (2021)	+ve
coopmem	Cooperative membership	Member: 1 is yes; 0 otherwise		Yussuf and Mohamed (2022); Abera et al. (2021); Ayana et al. (2022); Gebru et al. (2018b)

Source: Own compilation, 2022.

Table 3. Livelihood diversification strategies of peri urban households

Livelihood strategy	Sample households
	Freq.	%	Cumulative
On-farm	142	36.1	36.1
On-farm + non-farm	69	17.55	53.65
On-farm +off-farm	96	24.42	78.12
On-farm + non-farm + off-farm	86	21.88	100
Chi-square value P-value	89.89 0.000

Source: Survey data, 2022.

Figure 3. Choices of the livelihood diversification strategy adopted by the sampled household.

key1 = on-farm activity2 = on-farm + non-farm3 = on-farm + off-farm4 = on-farm + non-farm+ off-farm activities

Source: Survey data, 2022.

Table 4. ANNOVA test result of continuous variables

Source	Variable	SS	df	MS	F	Prob > F
Between groups	landsize	2.806	3	0.9355	5.44	0.001
	depend	33.472	3	11.157	23.93	0.000
	famil	13.742	3	4.58	2.54	0.05
	dismkt	314.21	3	104.73	2.85	0.037
	EDU	50.02	3	16.67	1.27	0.286
	Age	75.86	3	25.28	0.21	0.89
	TLU	6.03	3	2.01	0.78	0.507
	Total income	402462134	3	134154045	2.39	0.06

Note: OF- on-farm; NF- non-farm; OFF-off-farm.

Source: Survey data, 2022.

Table 5. Summary of statistics for continuous explanatory variables by choice of livelihood strategies

variable	Livelihood diversification strategies
	OF alone mean	OF + NF mean	ON + OFF mean	ON +NF + OFF mean	Total mean	F-value
Age	38.3	39.17	39.36	39	38.87	0.21
EDU	3.89	3.26	3.77	3.03	3.56	1.27
famil	2.97	3.43	3.35	3.26	3.2	2.54*
depend	1.21	0.67	1.54	0.97	1.14	23.93***
landsize	1.26	0.87	0.7	0.69	0.798	5.44***
TLU	2.08	2.35	2.11	1.96	2.11	0.78
dismkt	1.61	1.5	1.75	1.7	1.65	2.85**
Total income	32522.04	30978.63	30517.7	30087.05	31228.61	2.39*

Note: OF- on-farm; NF- non-farm; OFF-off-farm

Source: Survey data, 2022.

Table 6. Descriptive results for dummy explanatory variables by choice of livelihood strategies

Variable	Livelihood diversification strategies
	Response	1	2	3	4	total	χ^2 -value
sex	Male	107	60	71	70	308	5.64
	Female	35	9	25	16	85
accextn	Yes	109	39	42	55	245	28.16***
	No	33	30	54	31	148
accpsnp	Yes	52	35	38	30	155	4.82
	No	90	34	58	56	238
leadership	Yes	134	59	77	84	354	20.54***
	No	8	10	19	2	39
exposhock	Yes	53	9	10	16	88	30.15***
	No	89	60	86	70	305
acctrain	Yes	103	20	17	49	189	87.02***
	No	39	49	79	37	204
coopmemb	Yes	96	17	21	38	172	63.85***
	No	46	52	75	48	221

Source: Survey data, 2022.

Table 7. Multinomial logit model result on determinants of livelihood diversification strategies

Vari able	On-farm + non-farm				On-farm + off-farm				On-farm + non-farm + off-farm
	Coef.	SE	P- value	dy/dx	Coef.	SE	P- value	dy/dx	Coef.	SE	p- value	dy/dx
Age	0.0250	0.017	0.142	0.001	0.0281	0.016	0.086	0.002	0.006	0.014	0.661	−0.001
sex	−0.7815	0.517	0.131	−0.07	0.1693	0.431	0.695	0.058	−0.332	0.395	0.400	−0.028
dismkt	−0.09***	0.035	0.009	−0.007	−0.081**	0.034	0.017	−0.006	−0.006	0.027	0.820	0.005
EDU	−0.0291	0.052	0.578	−0.002	0.015	0.047	0.740	0.004	−0.041	0.043	0.341	−0.005
famil	0.2431	0.132	0.067	0.014	0.106	0.135	0.430	−0.003	0.220	0.121	0.069	0.02
depend	−3.10***	0.631	0.000	−0.33	−0.84***	0.278	0.003	−0.23	−0.738**	0.301	0.014	−0.03
land	−0.3714	0.435	0.393	0.042	−1.14***	0.412	0.006	−0.08	−1.26***	0.397	0.001	−0.13
TLU	0.1154	0.113	0.308	0.011	0.06	0.107	0.575	0.004	−0.022	0.098	0.816	−0.01
accextn	0.1155	0.445	0.795	−0.06	1.396***	0.395	0.000	0.136	0.799**	0.376	0.034	0.060
accpsnp	−0.4897	0.365	0.181	−0.05	−0.133	0.354	0.707	−0.004	0.076	0.321	0.811	0.035
leader	0.5865	0.641	0.361	0.118	−0.016	0.544	0.976	0.041	−1.505	0.840	0.073	−0.25
exposhok	0.831	0.496	0.094	−0.02	2.00***	0.494	0.000	0.170	1.265***	0.393	0.001	0.080
acctrain	0.7045	0.471	0.135	0.024	1.853***	0.460	0.000	0.216	−0.199	0.408	0.626	−0.13
coopmem	1.621***	0.462	0.000	0.096	1.151***	0.409	0.005	0.048	1.079***	0.363	0.003	0.057
constant	0.4300	1.199	0.720		−4.59***	1.19	0.000		−0.818	0.969	0.398
Reference category: on-farm only Number of observations: 393 − 2 Log likelihood model fitting Intercept only: 1075.644, Final: 798.242 Chi-square test: 277.403 Degree of freedom: 54 Significance: 0.000

***, **, * significant at less than 1%, 5%, and 10% probability level respectively.

Source: Survey data, 2022.

Tassie Wegedie, K., & Duan, X. (2018). Determinants of peri-urban households’ livelihood strategy choices: An empirical study of Bahir Dar city, Ethiopia. Cogent Social Sciences, 4(1), 1562508. https://doi.org/10.1080/23311886.2018.1562508

 Web of Science ®Google Scholar

Kassie, G. W. (2018). Agroforestry and farm income diversification: Synergy or trade-off? The case of Ethiopia. Environmental Systems Research, 6(1). https://doi.org/10.1186/s40068-017-0085-6

 Google Scholar

Yussuf, B. A., & Mohamed, A. A. (2022). Factors Influencing household livelihood diversification: The case of Kebri Dahar District, Korahey Zone of Somali Region, Ethiopia. Advances in Agriculture, 2022, 1–14. https://doi.org/10.1155/2022/7868248

 Google Scholar

Abera, A., Yirgu, T., & Uncha, A. (2021). Determinants of rural livelihood diversification strategies among Chewaka resettlers’ communities of southwestern Ethiopia. Agriculture & Food Security, 10(1), 1–19. https://doi.org/10.1186/s40066-021-00305-w

 Google Scholar

Ayana, G. F., Megento, T. L., & Kussa, F. G. (2022). The extent of livelihood diversification on the determinants of livelihood diversification in Assosa Wereda, western Ethiopia. GeoJournal, 87(4), 2525–2549. https://doi.org/10.1007/s10708-021-10379-5

 Web of Science ®Google Scholar

Gebru, G. W., Ichoku, H. E., & Phil-Eze, P. O. (2018a). Determinants of livelihood diversification strategies in Eastern Tigray Region of Ethiopia. Agriculture & Food Security, 7(1). https://doi.org/10.1186/s40066-018-0214-0

 PubMedGoogle Scholar

Gebru, G. W., Ichoku, H. E., & Phil-Eze, P. O. (2018b). Determinants of livelihood diversification strategies in Eastern Tigray Region of Ethiopia. Agriculture & Food Security, 7(1), 1–9. https://doi.org/10.1186/s40066-018-0214-0

 Google Scholar

Gemeda, F. T., Guta, D. D., Wakjira, F. S., & Gebresenbet, G. (2023). Land acquisition, compensation, and expropriation practices in the Sabata town, Ethiopia. European Journal of Sustainable Development Research, 7(2), em0212. https://doi.org/10.29333/ejosdr/12826

 Google Scholar

Yizengaw B. (2014). Determinants of household income diversification and its effect on food security status in rural Ethiopia: Evidence from Ethiopia longitudinal rural household survey. MSc in Economic Policy Analysis.

 Google Scholar

Mezgebo, T., & Shaughnessy, M. O. (2014). Growth, peri-urbanization and income diversification: Evidence from peri-urban Tigray, Northern Ethiopia. IGA Economies and Somalia Federalism, 30. cega.berkeley.edu

 Google Scholar