The Influence of Market Barriers and Farm Income Risk on Non-Farm Income Diversification

Edward Olale () and Hina Nazli

No 60915, Annual Meeting, 2010, Denver Colorado, July 25-27 from Canadian Agricultural Economics Society

Abstract: Empirical evidence shows that non-farm income diversification is associated with higher welfare among farm households. However, most studies have ignored market barriers and farm income risk in explaining income diversification behaviour. This study develops an analytical framework that includes both market barriers and farm income risk, in addition to other factors, in explaining income diversification behaviour. The analytical framework is used to test the hypotheses that: market barriers reduce the intensity of non-farm income diversification; and farm income risk increases the intensity of non-farm income diversification. The results confirm the hypotheses, suggesting that market barriers and farm income risk are key factors in explaining income diversification behaviour of farm households. Future studies should, therefore, consider the two factors in the analysis of income diversification behaviour.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Food Security and Poverty (search for similar items in EconPapers)
Pages: 17
Date: 2010-04-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/60915/files/non-farm%20paper.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:caes10:60915

DOI: 10.22004/ag.econ.60915

Access Statistics for this paper

More papers in Annual Meeting, 2010, Denver Colorado, July 25-27 from Canadian Agricultural Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().