The effect of livelihood diversification on food security: evidence from Ethiopia

Abstract

Livelihood diversification is relevant in poverty reduction, improve food security and a means of coping mechanism and risk management for survival of households. The research intended to examine the dynamics of livelihood diversification and food security over time, investigate the determinant factors of participation rate among household heads on livelihood diversification and to examine its effect on food security of rural and town households of Ethiopia based on the secondary data of Ethiopia living standard measurement survey. Balanced panel data employed enclosing a total 3729 samples representing national level of Ethiopia. The study used the descriptive analysis, Simpson diversification index and random effect logit model. Dynamics of livelihood diversification and food security observed over time. The random logistic regression model revealed that, household size, gender (female) and distance to market affect the livelihood diversification positively & significantly. Whereas, Age of household head, location (rural), distance to main road, credit access, assistance and experience of shocks influenced the probability of livelihood diversification negatively and significantly. Households who experienced shock and engaged in diversified livelihood have lower food security than being a diversified alone. Policy makers and other stakeholders need to integrate on implementations of livelihood strategies to improve food security, building resilience and vibrant economy.

Impact statement

This study investigated the determinants of household participation to livelihood diversification and the nexus between livelihood diversification and household food security in Ethiopia focusing on rural and small town context. The study used survey dataset collected by the living standard measurement study of the World Bank group in Collaboration with the Ethiopian Central statistical Agency. the data collection covered a wide range of representative sample in the country (a total 3729 samples) and the authors analysed the dynamics in food security over three waves of the survey (i.e. 2011/12, 2012/13 and 2015/16) which is critical policy concern stage in the Ethiopian development planning period (Ethiopia’s first growth and transformation plan). The dynamics is observed over the comparison of the survey waves in Ethiopia.

The result revealed that, compared with the first wave, 70.9% stayed driving income from one income source 15.9% and 13.2% of them moved to less and high-level diversifications in the second wave respectively. The transition level of food security increased by 10.7% and 3.6% in wave two and three compared with the first wave. Simpson Diversification Index suggested that the pattern and extent falls between 0.00 and 0.84. About 72.5% of respondents reported as relies only in one income source (i.e., agriculture). There was variability of trends of shocks over time which was observed highest score in wave three.

Household that experiences shock and engaged in less diversified livelihood have lower food security status than being a diversified alone. Policy makers and other stakeholders need to integrate on implementations of livelihood strategies to increase food security, building resilience and vibrant economy.

Thus, this study has the significance to policy makers, practitioners and academicians as it gives take ways to each depending on their respective interest.

Keywords:

• Livelihood diversification
• food security
• panel data
• household food security

REVIEWING EDITOR:

• Professor Goodness Aye, University of Agriculture, Makurdi Benue State, Nigeria

SUBJECTS:

• Development studies
• rural development
• economics
• agricultural economics
• economics and development
• microeconomics

Acknowledgment

No funding was received. There was no fund received from any organization to undertake this study. All expenses are covered by the study team.

Author contributions

All the three authors have contributed significantly to the writing of this article. Awoke Dejen Minyiwab and Yismaw Ayelign Mengistu were responsible for the study’s conception, design, and development. Tarekegn Dessalegn has written literature review and guided the method of estimation selection. Awoke Dejen Minyiwab has made the first draft of the article which was reviewed by Yismaw Ayelign Mengistu with modification made by same. Access for the Dataset was made by Yismaw Ayelign Mengistu. All the three authors contributed fairly equally during the data analysis as well as reviewing and editing the article. The discussion was reviewed by Yismaw Ayelign Mengistu and edited by Awoke Dejen Minyiwab for final research report. Lastly, Yismaw Ayelign Mengistu prepared the article in line with the authors’ guideline of the journal.

Disclosure statement

No potential conflict of interest was reported by the author(s). We all are aware and have agreed up on submission of the paper for the journal.

Data availability statement

The raw dataset is obtained from Ethiopian socio-economic survey from living standard measurement study (LSMS) which was collected by the Ethiopian central statistical agency in collaboration with the World Bank Group. It is available at https://microdata.worldbank.org/index.php/catalog/3823/get-microdata. The dataset extracted for this study and the do file will be made available on request.