Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia
Urbanization remains a public policy challenge in developing countries, particularly in Sub-Saharan Africa, where fast growth rates have been observed. This study aims to investigate the effect of urbanization on the income diversification of farm households in the Adama district of the Oromia regio...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2149447 |
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| author | Wakitole Dadi Messay Mulegeta Negussie Simie |
| author_facet | Wakitole Dadi Messay Mulegeta Negussie Simie |
| author_sort | Wakitole Dadi |
| collection | DOAJ |
| description | Urbanization remains a public policy challenge in developing countries, particularly in Sub-Saharan Africa, where fast growth rates have been observed. This study aims to investigate the effect of urbanization on the income diversification of farm households in the Adama district of the Oromia regional state. We used data collected from two groups of farm households based on their distance from the urban center. Families residing close to urban areas are categorized as treated and controlled for the remaining counterpart. The study employed both descriptive and inferential data analysis. Multinomial logistic regression analysis revealed that farming households in urban areas diversify their income to farm and unskilled non-farm activities more than rural households far away from urban centers. The research shows that increasing urbanization by one unit causes a decrease in farming activities by 32%, and farming and non-farm activities increase by 24%. The result also indicated that households with higher age and their consumption expenditure determinant factors for more likely to diversify their income to unskilled non-farm activities. The result proved that urbanization limits farming households’ capacity to generate income from agriculture and pushes them to diversify to non-farming income-generating activities. Governments should therefore design robust strategies and facilitate the provision of agricultural technologies. The regional state and small financial enterprises should also assist displaced households in expanding their income-generating activities. |
| format | Article |
| id | doaj-art-d744ea0c0e1d43b5be146990924ba5ef |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-d744ea0c0e1d43b5be146990924ba5ef2025-08-20T03:21:46ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2149447Urbanization and its effects on income diversification of farming households in Adama district, EthiopiaWakitole Dadi0Messay Mulegeta1Negussie Simie2Department of Center for rural development, College of development studies, Addis Ababa University, Addis Ababa, EthiopiaCenter for Food Security, College of Development Studies, Addis Ababa University, Addis Ababa, EthiopiaDepartment of Center for rural development, College of development studies, Addis Ababa University, Addis Ababa, EthiopiaUrbanization remains a public policy challenge in developing countries, particularly in Sub-Saharan Africa, where fast growth rates have been observed. This study aims to investigate the effect of urbanization on the income diversification of farm households in the Adama district of the Oromia regional state. We used data collected from two groups of farm households based on their distance from the urban center. Families residing close to urban areas are categorized as treated and controlled for the remaining counterpart. The study employed both descriptive and inferential data analysis. Multinomial logistic regression analysis revealed that farming households in urban areas diversify their income to farm and unskilled non-farm activities more than rural households far away from urban centers. The research shows that increasing urbanization by one unit causes a decrease in farming activities by 32%, and farming and non-farm activities increase by 24%. The result also indicated that households with higher age and their consumption expenditure determinant factors for more likely to diversify their income to unskilled non-farm activities. The result proved that urbanization limits farming households’ capacity to generate income from agriculture and pushes them to diversify to non-farming income-generating activities. Governments should therefore design robust strategies and facilitate the provision of agricultural technologies. The regional state and small financial enterprises should also assist displaced households in expanding their income-generating activities.https://www.tandfonline.com/doi/10.1080/23322039.2022.2149447Income diversificationmarginal effectmultinomial logistic regressionOromia Regionurbanization |
| spellingShingle | Wakitole Dadi Messay Mulegeta Negussie Simie Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia Cogent Economics & Finance Income diversification marginal effect multinomial logistic regression Oromia Region urbanization |
| title | Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia |
| title_full | Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia |
| title_fullStr | Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia |
| title_full_unstemmed | Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia |
| title_short | Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia |
| title_sort | urbanization and its effects on income diversification of farming households in adama district ethiopia |
| topic | Income diversification marginal effect multinomial logistic regression Oromia Region urbanization |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2149447 |
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