Factors Affecting Nonfarm Income Diversification among Rural Farm Households in Central Nepal

Nonfarm activities play an important role in the determinationof rural household income, consumption expenditure,and household food security. however, much lessstudies have been devoted to the factors that influence nonfarmincome diversification by farm household in developingcountries. using cross-sectional data and a probit model, thisstudy attempts to determine the factors influencing nonfarmincome diversification decisions by farm households in centralnepal. the result reveals that household characteristics suchas age, gender and education of the household head, andfamily size play a significant role in nonfarm work decisions.the households with larger farm size are less likely toparticipate in nonfarm work than their counterpart. additionally,for those remains in the rural households, distance to roadand market hinders the opportunities for nonfarm work.finally, regional differences also exist in participating nonfarmactivities among farm households. this study suggests thatgovernment policy should pay more attention on education,gender and infrastructures such as road and markets, toreduce the entry barriers and facilitate easier access to nonfarmactivities. also, nonfarm activities need to be promoted andincorporated in governmental plans and policies for balanceddevelopment between hills and terai areas.