Abstract:  Kon Tum, a mountainous northernmost border province in the Central Highlands of Vietnam, is one of the poorest provinces in Vietnam. Many studies recently identified that the diversification of incomes is a critical livelihood strategy for rural households in developing countries. Thus, this study analyzes the factors influencing income diversification decision for off-farm work of rural households. The binary logit model will be employed to investigate the determinants of income diversification decision of rural households for off-farm work. Through 200 households selected using multi-stage sampling technique, this study 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, and access to tarred roads. The findings suggested that it is important to support both agricultural and non-agricultural sectors to succeed in terms of poverty reduction and food security.

Keywords: income diversification, off-farm work, rural household, poverty,  Kon Tum


  1. Abdulai, A., and CroleRees A. (2011), Determinants of Income Diversification amongst Rural Households in Southern Mali, Food Policy, 40, 1269–1279.
  2. Barrett, C. B., Reardon T., and Webb P. (2001), Non-farm Income Diversification and Household Livelihood Strategies in Rural Africa: Concepts, Dynamics, and Implications, Food Policy, 26 (4), 315–331.
  3. Berg, M., and G. Kumbi (2006), Poverty and the Rural Non-Farm Economy in Oromia, Ethiopia, International Association of Agricultural Economists Conference, Gold Coast, Australia, August 12–18 International Association of Agricultural Economics, 1–17.
  4. Berdegué, J. A., E. Ramírez, T. Reardon and G. Escobar (2001), Rural Nonfarm Employment and Incomes in Chile, World Development, 29 (3), 411–425.
  5. Beyene, A. D (2008), Determinants of Off-farm Participation Decision of Households in Ethiopia, Agrekon, Vol 47 (1).
  6. Chaplin, H., S. Davidova, and M. Gorton (2004), Agricultural Adjustment and the Diversification of Farm Households and Corporate Farms in Central Europe, Journal of Rural Studies, 20, 61–77.
  7. Demissie, A., and B. Legesse (2013), Determinants of Income Diversification among Rural Households: The Case of Smallholder Farmers in Fedis District, Eastern Hararghe Zone, Ethiopia, Journal of Development and Agricultural Economics, 5 (3), 120–128.
  8. Ellis, F. (1998), Household Strategies and Rural Livelihood Diversification, The Journal of Development Studies, 35 (1), 1–38.
  9. Escobal, J. (2001), The Determinants of Nonfarm Income Diversification in Rural Peru, World Development, 29 (3), 497–508.
  10. Fernandez-Cornejo, J. (2007), Off-farm Income, Technology Adoption, and Farm Economic Performance, Economic Research Report No.36, United States Department of Agriculture, Washington DC., 1–7.
  11. Goodwin B., and A. Mishra (2004), Farming efficiency and the determinants of multiple job holding by farm operators, American Journal of Agricultural Economics, 86, 722–729.
  12. Henin, B. (2002), Agrarian Change in Vietnam’s Northern Upland Region, Journal of Contemporary Asia, 32 (1), 3–28.
  13. Lanjouw, P., and A. Sharrif. (2002), Rural Non-Farm Employment in India: Access, Income and Poverty Impact. Working Paper Series. No. 81.
  14. Lemi, A. (2006), The Dynamics of Income Diversification in Ethiopia: Evidence from Panel Data, Working Papers 3, University of Massachusetts, Boston.
  15. Matshe, I., and T. Young (2004), Off-Farm Labour Allocation Decision in Small-scale Rural Households in Zimbabwe, Agricultural Economics, 30, 175–186.
  16. Minot, N., M. Epprecht, T. Anh, L. Q. Trung (2006), Income Diversification and Poverty in the Northern Uplands of Vietnam, Research Report 145, International Food Policy Research Institute, Washington, DC.
  17. Ruben, R., and M. Berg (2001), Nonfarm Employment and Poverty Alleviation of Rural Farm Household in Honduras, World Development, 29 (3), 549–560.
  18. Truong, C. T. N., C.V. Duong, F. M. Rundquist, and M. Jirstrom (2003), Agricultural Diversification in Can Tho: Farm level, Omonrice, 11, 117–120.
  19. Wanyama, M., L. O. Mose, M. Odendo, J. O. Okuro, G. Owuor, and L. Mohammed (2010), Determinants of Income Diversification Strategies amongst Rural Households in Maize based Farming Systems of Kenya, African Journal of Food Science. 4 (12), 754–763.
  20. Woldehanna, T., and A. Oskam (2001), Income Diversification and Entry Barriers: Evidence from the Tigray Region of Northern Ethiopia, Food Policy, 26, 351–365.