Income Diversification: Determinants and Its Impact on Rural Household Income in Kon Tum Province, Vietnam

• Main Authors: Dao, Thi Ly Sa, 陶氏莉莎
• Other Authors: Chung-Yuan Tsay
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/x4286j

碩士 === 國立屏東科技大學 === 熱帶農業暨國際合作系 === 103 === Kon Tum, a mountainous province in the Central Highlands of Vietnam, is one of the poorest provinces in Vietnam. Studies identify that the diversification of incomes is a critical livelihood strategy for poor rural households. The objectives of the study are to analyze factors influencing income diversification among rural households and its impact on household income. First, a logit model was employed to investigate the determinants of income diversification decision of rural household into off-farm work. Then, linear regression model was used to examine the effect of diversification and factors affecting rural household income. Through 200 households selected by multi-stage sampling technique, this study showed that farm activities were the most important source of income for rural households in the region and made up 76% of total household income. Within this category, the most important source of income was crop production, while the most important crops were cassava and coffee. The remaining 24% of the total household income originated from off-farm activities. However, only around 39% of the households gained income from the latter activities. In contrast, 96% participated in agricultural activities. Furthermore, participation in farm activities was lower for less-poor households compared to the poorest households, whereas the rate of participation in off-farm activities was comparatively higher for the better-off households. The regression analysis showed that participation in off-farm employment was influenced by gender, age, education of household head, family size, number of children attending school, farm size, access to credit, access to tarred road. Moreover, the study indicated that level of income diversification had a significant positive impact on total income. Furthermore, education, ethnicity of household head, farm size, distance to nearest market and regional location had a strong influence on overall income. Based on the findings of this study, it is important to support both farm and off-farm sectors to be achieved in terms of poverty reduction and food security. Factors deterring households’ participation in lucrative off-farm activities need to be addressed through provision of training, credit, improving education, infrastructure and promotion of employment opportunities with emphasis of targeting the poor and women household heads. Keywords: income diversification, off-farm work, rural household, poverty, Kon Tum province