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

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. 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.