Determinants of Participation Decision in Non-Farm Income Generating Activities in Guji Zone: The Case of Dama District

Abstract

ABSTRACT  
The objective of this study is to examine the determinants of participation decision in non-farm income
generating activities among rural farm households in Dama district. Multi-stage sampling techniques 
were applied to select 274 rural farm households. Descriptive and binary logistic econometric models 
were used to examine the data. Descriptive statistics show that, among the total sample households, 168 
households participated in non-farm income-generating activities and 106 did not. The results of the 
binary logistic model revealed that education and family size had positive and significant effects on 
participation decisions. The remaining variables, such as sex, age, land size, access to transport, 
tropical livestock units, farm income, and distance to the market, had a negative but significant effect. 
Based on the results, the regional and local governments have to work on creating awareness about the 
benefits of participation in non-farm activities, providing agricultural markets and rural infrastructure 
facilities, promoting higher quality education, and motivating farmers to pursue business in value 
addition, processing, and livestock production.