Determinants of Rural Households’ Non-farm Participation in West Ethiopia; Empirical evidence from Horo Guduru Wollega Zone

Abstract Farm and non-farm activities are playing an important role in improving the lives of rural families. However, non-farming activities are determined by various factors. The aim of this study was to identify and analyze the variables that affect non-farm participation. Both a descriptive and an econometric model were used to analyze this issue. Mean and percentage were used as descriptive methods, while the binary probit model was used to try to explain the econometric model. Variables such as age, distance to market, access to credit, training, land size, membership in iqub, and marital status significantly determine non-farm participation. The recommendation of the results of this study was that the government should focus on gender equality, land tenure, providing various pieces of training, and establishing infrastructure connecting rural and urban areas such as roads, electricity, and telephone services to improve the livelihood of rural families.