Market Access and Livelihood Diversification in Rural Ethiopia: Evidence from Kewot Woreda of North Shewa

Abstract

The aim of this study was to examine the relation between market access and livelihood diversification in rural areas of Kewet woreda (district) in North Shewa. The data for the study were gathered through farm household survey. The Logit Regression Model was used to identify the determinants of market access to both rural and town markets. The findings show that households’ access to markets is constrained, inter alia, by location, distance, availability of infrastructure, and cropping pattern. The Logit Regression analysis showed that market access is negatively and significantly affected by distance. Households who reside in remote areas from market centres were found to be the least diversifier of means of livelihood. The findings imply the importance of market centres development for diversification of rural economy.