International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Analysis into the Factors influencing the Level of Small Scale Household Farmers’ Off-Farm Income amongst the Grape Farmers in Dodoma Tanzania

Author Affiliations

  • 1 Department of Economics and Statistics, The University of Dodoma, P.O. Box 395, Dodoma, TANZANIA

Int. Res. J. Social Sci., Volume 3, Issue (11), Pages 8-16, November,14 (2014)


The grant aim of this study was to assess the various factors that determinethe level of small scale household farmers’ off-farm income amongst grape farmers in Dodoma. Thestudy appliedthe Tobit econometric technique in investigating the factors that may explain the households’ decision on whether or not to participate in various off-farm income generating activities, using household data collected from grape farmers in Dodoma. Due to its failure in specification tests, the study employed the use of Censored Least Absolute Deviation estimator (CLAD) which is robust to heteroskedasticity and non-normality specification problems facing the normal maximum likelihood estimations such as that of Tobit. The results indicated that the level of income amongst small scale households’ farmers from various off-farm income generating activities is significantly influenced by asset endowments where by financial assets, human capital assets and physical assets are the main assets influencing the decision where byhuman capital assetswere the main determinants. The study went further into proposing policy interventions which includesawareness campaign for off-farm work, revisiting land ownership policies, provision of loans to farmers, availability of sustainable markets, effective implementation of Kilimo Kwanza policy and improved rural infrastructure.


  1. Reardon T.K., Stamoulis G. and Winters P., Promoting Farm/Non-farm Linkages for Rural Development: Case Studies from Africa and Latin America, Food and Agriculture Organization of the United Nations, Rome (2002)
  2. Davis J.R., The rural non-farm economy, livelihoods and their diversification: Issues and options, Natural Resources Institute, Chatham (2003)
  3. Amani H.K.R., Making Agriculture Impact on Poverty in Tanzania: The Case of Non-Traditional Export Crops, Paper Presented at a Policy Dialogue for Accelerating Growth and Poverty Reduction in Tanzania, Held at ESRF, May 12, 2005, Dar es Salaam, (2005)
  4. Bright H., Davis J., Janowski M., Low A. and Pearce D., Rural Non-Farm Livelihoods in Central and Eastern Europe and Central Asia and the Reform Process: A Literature Review. Natural Resources Institute Report No. 2633, World Bank (2000)
  5. Gordon A., Non-Farm Rural Livelihoods, Natural Resources Institute, Chatham (1999)
  6. Taylor D.C., The Economics of Malaysian Paddy Production and Irrigation, The Agricultural Development Council, Bangkok (1982)
  7. United Republic of Tanzania, Poverty Reduction Strategy: The Second Progress Report 2001/02, Government Printers, Dar es Salaam (2003)
  8. Ellis F., Survey article: household strategies and rural livelihood diversification, Journal of Development Studies,35(1), 1–38 (1998)
  9. Food and Agriculture Organization of the United Nations (FAO), Rural non-farm income in developing countries, in The State of Food and Agriculture, Rome, FAO (1998)
  10. Babatunde R.O. and Qaim M., Off-farm Labor Market Participation in Rural Nigeria: Driving Forces and Household Access. Contributed paper for the 5th IZA/World Bank Conference: Employment and Development, May 03 – May 04, 2010, Cape Town, South Africa,(2010)
  11. Long N., Agency and Constraint, Perceptions and Practice. A theoretical position. In: (H. de Haan and N. Long 9eds), Images and Realities of Rural Life, Wageningen Perspectives on Rural Transformations. Assen: Van Gorcum, 1-20 (1997)
  12. Omiti J. and Omosa M., The Impact of HIV/AIDS on Rural Livelihoods: A Desk Review, Ministry of Agriculture and Rural Development, Republic of Kenya (2002)
  13. Barret, C.B. and Reardon, T., Asset, Activity, Income Diversification among African Agriculturists: Some Practical Issues, Project report to the USAID BASIS CRSP, (2000)
  14. Ellis F., The determinants of rural livelihood diversification in developing countries, Journal of Agricultural Economics, 51(2), 289-302 (2000)
  15. DFID, Natural Resources Systems Programme: Annual Report 1998/99. RNRKS, DFID, London (1999)
  16. Food and Agriculture Organization of the United Nations (FAO), Analysis of Livelihood Assets. Integrated Food Security phase Classification, Rome FAO (2009)
  17. Krishna, A., Active Social Capital. Oxford University Press (2003)
  18. Carney D., Drinkwater M., Rusinow T., Neefjes K., Wanamali S. and Singh N., Livelihood approaches compared: A brief comparison of the livelihoods approaches of DFID, CARE, Oxfam, and UNDP, Department of International Development (DFID), London (1999)
  19. Reardon T. and Vosti S.A., Links Between Rural Poverty and the Environment in Developing Countries: Asset Categories and Investment Poverty, World Development, 23(9), 1495-1506 (1995)
  20. Gujarati D., Basic Econometrics 3rd Edition. McGraw-Hill, New York (1995)
  21. Siegelman L. and Zeng L., Analyzing Censored and Sample-Selected Data with Tobit and Heckit Models, Political Analysis,, 167-182 (1999)
  22. De Janvry A. and Sadoulet E., Income strategies among rural households in Mexico: the role of off-farm activities, World Development,29(3), 467-480 (2001)
  23. Greene W.H., Econometric Analysis. 5th Edition, Prentice Hall (2003)
  24. Powell J., Least Absolute Deviations Estimation for the Censored Regression Model, Journal of Econometrics, 25(3), 303-25 (1984)