Abstract:
Agriculture is a basic means of livelihood for rural households in El-wayye woreda of
borana zone. But it is one of the major risky business activities which affected by different
known and unidentified factors. Therefore, rural households desire other options of
livelihood in addition to on-farm activities. But the choices of livelihood strategy were
determined by different factors, thus, this study aims to assess the determinant of choice
of livelihood diversification strategy in the study area. A multi-stage sampling technique
was employed to select 192 sample households. Quantitative and qualitative data were
collected from primary and secondary data sources. Quantitative data were analyzed by
using descriptive by mean, minimum, maximum, percentage, frequency,inferential
statistics by chi-square and f-test and econometric analysis through multinomial logit
model. Qualitative data were analyzed by narrative. The results of the study revealed that
Chi-square result of access to training, exposure to shocks, cooperative members, access
to credit, extension contact and education and F-test results of household size, age,
livestock holding and market distance were significant factors on the household choice of
livelihood strategies at 1%, 5% and 10% significance level. This study also identified four
types of livelihood strategy that are farm only, farm+ off-farm, farm + nonfarm and farm
+off-farm + nonfarm which account 57.92%, 14.06%, 19.27%, and 9.37%, out of
respondent respectively. The model result reflected that exposure to shocks, use of credit,
training, extension contact and cooperative member were a positive and sex,livestock,
and market distance, were a negative significantly determine choice of livelihood
diversification strategy at less than 10% probability level respectively. Therefore, it is
suggested that, the government or any concerned stakeholder particularly the study
woreda should develop comprehensive rural development policy that could empower off
farm and nonfarm livelihood strategies besides on-farm activities.
