Rural nonfarm diversification and household food spending: Evidence from Cameroon

Wirba, Ebenezer Lemven

Rural nonfarm diversification and household food spending: Evidence from Cameroon - 2021.


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This paper attempts to evaluate the impact of nonfarm diversification on food spending among rural households using the two most recent rounds of the Cameroon household consumption survey and the endogenous switching regression model as the empirical strategy. To do so, we identify the determinants of the probability of rural nonfarm employment, the socioeconomic factors that influence food spending among rural diversifiers and non-diversifiers, and the corresponding factual-counterfactual distributions of food spending. The descriptive results show preliminary indications that diversifiers enjoy a food spending premium compared to non-diversifiers. The results also show that an increase in the proportion of diversifiers in the neighborhood increases the likelihood that the reference household will be a nonfarm diversifier. Further results show that diversification into nonfarm activities generates gains in food spending in the order of XAF5,696 per month in rural Cameroon.1 These findings encourage public interventions that promote nonfarm diversification to achieve food security in rural settings.JEL Codes: J21, O13, O12, D24.

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