Effect of Off-Farm Income on Farm Production and Determinants : An Emperical Evidence in the Case of Ethiopia

The income from off-farm activity helps farm households to smooth their consumption, to undertake investment on their farm to boost farm production and to diversify their livelihood. This book tried to investigate the effect of off farm income on farm production and the determinants of off farm activity participation of rural households. The study mainly employed Tobit and Logit model to investigate the issue. Accordingly, the analysis revealed the positive effect of off farm income on farm production. Moreover, the determinants of off farm activity participation were also identified. Sustainable rural development is the focus of government policy in developing countries. Thus, the output of the study is expected to be used as a reference among researchers, stakeholders and policy makers to bring sustainable rural development.