Smallholder farmersù household wealth and livelihood choices in developing countries: A Sri Lankan case study

Jagath C. Edirisinghe

Economic Analysis and Policy, 2015, vol. 45, issue c, 33-38

Abstract: Smallholder farmersù household asset based wealth indicators purport to show long-run economic well-being. This paper argues that such well-being is contingent on the ølivelihood strategiesù of households and specifically focuses on the impact of off-farm income strategies on wealth. Using a sample of 4861 Sri Lankan agricultural households, a set of ølivelihood strategiesù was developed from income share data by employing cluster analysis. These ølivelihood strategiesù are related to a wealth index developed from a principal component analysis using a set of quantile regressions. The results show that the effect of off-farm income on wealth is similar to most other strategies at lower wealth quantiles (poor farmers), but becomes weaker at higher quantiles of wealth.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:45:y:2015:i:c:p:33-38

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