Rural House-Holds Non-Farm Participation and Its Impact on Food Security. The Case of Jimma Geneti Ditrict, Horo Guduru Wollega Zone, Oromia Regional State, Ethiopia

Abstract

The primary objectives of the study were to assess the influence of non-farm participation on various dimensions of food security, additionally, the research sought to examine the socio-economic factors that mediate the impact of non-farm activities on food security. The research utilized both quantitative and qualitative methods to capture a holistic view of the subject. Surveys were conducted to collect quantitative data on income generation, employment opportunities, and resource diversification associated with non-farm participation. This study investigated the impact of non-farm activities on food security in rural households, using daily calorie intake as the primary measure of food security. In order to achieve the objectives of the study, descriptive statistics and econometrics model such as Employing Endogenous Switching Regression (ESR), Propensity Score Matching (PSM) and Inverse Probability Weighting (IPW)were employed. Employing Endogenous Switching Regression (ESR), Inverse Probability Weighting (IPW), and Propensity Score Matching (PSM) with kernel matching, the analysis reveals that participation in non-farm activities significantly enhances food security. The results show substantial increases in daily calorie intake for households engaged in non-farm activities, with the Average Treatment Effect on the Treated (ATT) consistently indicating improved outcomes across all methods. The study also highlights positive spillover effects on non-participants and identifies significant heterogeneity in treatment effects, underscoring the importance of context-specific policy interventions. The findings suggest that promoting non-farm activities can be a viable strategy for improving food security and economic welfare in rural areas, providing a strong foundation for targeted policy recommendations aimed at fostering rural economic empowerment and resilience.