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

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

Cereal Commodity Trading in Ethiopian Local Marketplace: Examining Farmers’ Quantity Measurement Behaviors

Local marketplaces are remarkable organizations for agricultural product transactions in Ethiopia. However, little is known concerning measurement practices in these micro-trading zones. Thus, this study intended to examine the cereal commodity quantity measurement behaviors of farmers in the local marketplaces of Ethiopia. A survey was conducted in four districts marketplaces (N = 382) of the Oromia Region. The χ2 test was employed to evaluate the association between farmers’ perception of the accuracy of local units and measuring instruments related to immoral buyers’ behaviors. According to the findings, farmers’ cereals quantity measurement behaviors proved the presence of unreliability which created transaction, measurement, social capital, and two-hand palm cereals gift costs. The χ2 test results indicated that farmers’ perceptions of the accuracy of local units and measuring tools related to buyers’ unethical behaviors had significant relationships with bowl, glass, sack, and can local units, except for weight balance in Dendi and Bako Tibe, and for cans in the Gimbichu area. This study demonstrates that standardization of tools and measurements, together with institutional support, would have a huge potential for economizing transaction costs and making equitable cereals exchanges and efficient markets