Household Income Diversification and Food Security: Evidence from Rural and Semi-Urban Areas in Ethiopia

Bekele Gebisa Etea, Deyi Zhou, Kidane Assefa Abebe and Dessalegn Anshiso Sedebo
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Bekele Gebisa Etea: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, Hubei, China
Deyi Zhou: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, Hubei, China
Kidane Assefa Abebe: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, Hubei, China
Dessalegn Anshiso Sedebo: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, Hubei, China

Sustainability, 2019, vol. 11, issue 12, 1-16

Abstract: Reducing food insecurity remains a major public policy challenge in developing countries. Food insecurity becomes severe in areas where households highly depend on undiversified livelihoods. However, studies linking household income diversification to food security are limited. This study, therefore, examined the effect of income diversification on food security in the Ambo district, Ethiopia. A survey of rural (n = 175) and semi-urban (n = 175) households was conducted. The Simpson’s index of diversity (SID) was used to measure the level of household income diversity. Food security (access) was measured using the daily calorie consumption (nutrition-based) and the household food insecurity access scale (HFIAS) (experience-based) methods. Consequently, we used binary logistic regression and ordinary least squares (OLS) estimation methods to determine the effect of household income diversity on food security. The instrumental variable (IV) method was also employed to overcome an endogeneity bias. The results revealed that the level of household income diversification was low, and the majority of households were food insecure. The binary logistic and the second-stage least square (2SLS) regression results suggested that income diversification contributes significantly and positively to food security in the study areas. Therefore, we conclude that income diversification reduces food insecurity by enhancing households’ access to food.

Keywords: income diversification; food security; rural; semi-urban; Ambo district; Ethiopia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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