Date Received: 19-12-2025
Date Accepted: 04-06-2026
Date Published: 28-07-2026
##submissions.doi##: https://doi.org/10.31817/tckhnnvn.2026.24.7.13
Views
Downloads
How to Cite:
A Review of the Roles and Determinants of Rural Household Livelihood Diversification
,
Hoang Gia Hung
1
Keywords
Food security, resilience, climate change, rural livelihoods, rural development, sustainable livelihoods
Abstract
Household livelihood diversification is an important strategy for adapting to economic, social, and environmental changes. This paper provides a review of existing studies to clarify the roles and determinants of livelihood diversification. The literature was collected from both domestic and international scientific databases, including journal articles, research reports, and academic books published mainly between 2015 and 2025. The findings indicate that livelihood diversification not only helps disperse risks and stabilize household income against climate- and market-related shocks, but also creates opportunities to expand economic activities, improve income, and strengthen household food security. Livelihood diversification is influenced by various factors, including household resources, natural resource conditions, markets and infrastructure, institutional and policy environments, as well as external risks and shocks. The study suggests that promoting livelihood diversification should be supported by appropriate development policies to enhance sustainable rural household livelihoods and improve adaptability to the current context of increasing uncertainties and changes
References
Ababiya A., Daniel Y., Assefa K., Erigicho Y. & Woreda L. (2025). Impact of Livelihood Diversification on Income of Smallholder Farmers in Lemo Woreda, Hadiya Zone, Central Ethiopia. Journal of Information Systems Engineering and Management. Abebe T., Chalchisa T. & Eneyew A. (2021). The impact of rural livelihood diversification on household poverty: evidence from Jimma Zone, Oromia National Regional State, Southwest Ethiopia. The Scientific World Journal. (1): 3894610. https://doi.org/10.1155/2021/3894610 Addisu Y. (2017). Livelihood strategies and diversification in western tip pastoral areas of Ethiopia. Pastoralism, 7(1): 9. Ahmed M., Bhandari H., Gordoncillo P., Quicoy C. & Carnaje G. (2018). Factors affecting extent of rural livelihood diversification in selected areas of Bangladesh. SAARC Journal of Agriculture. 16(1): 7-21. Alemu F.M. (2023). Measuring the intensity of rural livelihood diversification strategies, and Its impacts on rural households’ welfare: Evidence from South Gondar zone, Amahara Regional State, Ethiopia. MethodsX. 10: 102191. https://doi.org/10.1016/j.mex.2023.102191
Alobo Loison S. (2015). Rural livelihood diversification in sub-Saharan Africa: a literature review. The journal of Development Studies. 51(9): 1125-1138. Anríquez G. & Stamoulis K.G. (2007). Rural Development and Poverty Reduction: Is Agriculture Still Key?. eJADE: electronic Journal of Agricultural and Development Economics. 4(1): 5-46. Asfaw S., McCarthy N., Paolantonio A., Cavatassi R., Reda M.A. & Lipper L. (2015). Livelihood diversification and vulnerability to poverty in rural Malawi. ResearchGate. DOI:10.2139/ssrn.3305894. Asfaw S., Scognamillo A., Di Caprera G., Sitko N. & Ignaciuk A. (2019). Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa. World development. 117: 278-295. Asravor R.K. (2018). Livelihood diversification strategies to climate change among smallholder farmers in Northern Ghana. Journal of International Development. 30(8): 1318-1338. Awoke W., Amanor-Boadu V. & Chang C.-L. (2025). Livelihood Diversification and Food Security in Chronically Food-Insecure Regions: Evidence from Rural Northwest Ethiopia. Journal of Agriculture and Food Research. p. 102407. Ayana G.F., Megento T.L. & Kussa F.G. (2022). The extent of livelihood diversification on the determinants of livelihood diversification in Assosa Wereda, Western Ethiopia. GeoJournal. 87(4): 2525-2549. Barrett C.B., Reardon T. & Webb P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy. 26(4): 315-331. Bayata A.N. & Nega T.A. (2020). Factors Affecting Livelihood Diversification Decision: The Case of Kuormuk and Homosha Districts of Assosa Zone, Beneshangul Gumuz Regional State, Ethiopia. American Journal of Plant Biology. 5(4): 68-76. https://doi.org/10.11648/j.ajpb.20200503.16 Bebbington A. (1999). Capitals and capabilities: a framework for analyzing peasant viability, rural livelihoods and poverty. World development. 27(12): 2021-2044. Beltrán-Tolosa L.M., Cruz-Garcia G.S., Ocampo J., Pradhan P. & Quintero M. (2022). Rural livelihood diversification is associated with lower vulnerability to climate change in the Andean-Amazon foothills. Plos Climate. 1(11): e0000051. https://doi.org/10.1371/journal.pclm.0000051 Biswas B. & Mallick B. (2021). Livelihood diversification as key to long-term non-migration: evidence from coastal Bangladesh. Environment, Development and Sustainability. 23(6): 8924-8948. Challa T.G., Mamo A.T., Tibeso A.N. & Dawud I. (2019). Rural livelihood diversification status and determinant factors in Arsi, Ethiopia. International Journal of Business and Economics Research. 8(1): 23-30. doi.org/10.11648/j.ijber.20190801.14 Dao T. & Pham C. (2022). Smart agriculture for small farms in Vietnam: Opportunities, challenges and policy solutions. The FFTC Journal of Agricultural Policy. 3: 36-46. Davis B., Di Giuseppe S. & Zezza A. (2017). Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa. Food policy. 67: 153-174. Dereje D., Tilahun T. & Yirgu T. (2024). Livelihood diversification strategies and food security in the Weaving-based livelihood system of Gamo Zone, Southern Ethiopia. F1000Research. 13: 1459.
Đàm Thị Thu Trang (2023). Tác động của đa dạng sinh kế đến thu nhập hộ gia đình ở Việt Nam: Kết quả từ mô hình hồi quy với biến công cụ. Tạp chí Kinh tế và Dự báo. Ellis F. (2000). Rural livelihoods and diversity in developing countries. Oxford university press. Fan S. & Rue C. (2020). The role of smallholder farms in a changing world. In The role of smallholder farms in food and nutrition security. Springer International Publishing Cham. pp. 13-28. https://doi.org/10.1007/978-3-030-42148-9_2 Furbush A.M., Josephson A., Kilic T. & Michler J.D. (2025). Coping or hoping? Livelihood diversification and food insecurity in the COVID-19 pandemic. Food policy. 131: 102819. Gebreyesus B. (2016). The effect of livelihood diversification on household income: evidence from rural Ethiopia. International Journal of African and Asian Studies. 20(1): 1-12. Gebru G.W., Ichoku H.E. & Phil-Eze P.O. (2018). Determinants of livelihood diversification strategies in Eastern Tigray Region of Ethiopia. Agriculture & Food Security. 7(1): 62. Habib N., Ariyawardana A. & Aziz A.A. (2023). The influence and impact of livelihood capitals on livelihood diversification strategies in developing countries: A systematic literature review. Environmental Science and Pollution Research. 30(27): 69882-69898. https://doi.org/10.1007/s11356-023-27638-2. Haggblade S., Hazell P.B. & Reardon T. (2007). Transforming the rural nonfarm economy: Opportunities and threats in the developing world. Intl Food Policy Res Inst. Haile F., Mohamed J.H., Aweke C.S. & Muleta T.T. (2025). Impact of Livelihood Diversification on Rural Households’ Food and Nutrition Security: Evidence from West Shoa Zone of Oromia Regional State, Ethiopia. Current Developments in Nutrition. 9(1): 104521. Hassan A.U., Khan N. & Mehmood Z. (2024). Factors Affecting Rural Households Livelihood Diversification in Southern Parts of Khyber Pakhtunkhwa. Journal of Asian Development Studies. 13(1): 1110-1130. https://doi.org/10.62345/jads.2024.13.1.92 Ho T.D., Tsusaka T.W., Kuwornu J.K.M., Lam L.M. & Vu T.T. (2024a). Does livelihood capital influence the livelihood diversification strategies of smallholder rice farmers? Evidence from the Mekong Delta of Vietnam. Cogent Economics & Finance. 12(1): 2397456. Ho N., Lai P., Truong T., Do T. & Nguyen T. (2024b). The contribution of livelihood diversification activities to poverty reduction of ethnic minority households: A case study in Son La Province, Vietnam. Journal of Infrastructure, Policy and Development. 8(1): 6465. Hossain M.R. (2024). Evaluating household's risk management strategies considering heterogeneities in the livelihood diversification: Evidence from farm households of Bangladesh. Social Sciences & Humanities Open. 9: 100785. Iraoya A. & Isinika A. (2020). Rural livelihood diversification in Nigeria: Implications for labour supply and income generation. Journal of Management, Economics, and Industrial Organization. 4(3): 64-74. Ismail M., Singh H., Alam A. & Farooq I. (2025). Assessment of livelihood development and diversity as a strategy to cope with livelihood vulnerability in Leh, India: a PCA-based approach. ResearchGate. 27(2): 3233-3263 Jackson T.M., Nandi R., Jannat A., Ghosh A., Hajra D.K., Mitra,B., Rashid M.M., Bista S., Chaudhary A. & Timsina P. (2025). Patterns of livelihood diversification in farming systems of the Eastern Gangetic Plains. Agricultural Systems. 227: 104346. Jones A.D., Shrinivas A. & Bezner-Kerr R. (2014). Farm production diversity is associated with greater household dietary diversity in Malawi: Findings from nationally representative data. Food Policy. 46: 1-12. Kalinga A.S., Kangalawe R.Y. & Lyimo J.G. (2019). Drivers of livelihoods diversification in Rungwe District. Journal of Sustainable Development. 12(4): 86-98. Kassegn A. & Abdinasir U. (2023). Determinants of rural households’ livelihood diversification strategies: In the case of north Wollo zone, Amhara National Regional State, Ethiopia. Cogent Economics & Finance. 11(1): 2185347. Kassie G.W., Kim S. & Fellizar Jr F.P. (2017). Determinant factors of livelihood diversification: Evidence from Ethiopia. Cogent Social Sciences. 3(1): 1369490. Khan N.A., Shah A.A., Chowdhury A., Wang L., Alotaibi B.A. & Muzamil M.R. (2024). Rural households' livelihood adaptation strategies in the face of changing climate: A case study from Pakistan. Heliyon. 10(6): e28003. https://doi.org/10.1016/j.heliyon.2024.e28003 Khai T.T. (2014). Determinants of income diversification and its effect on household income in rural Vietnam. Journal of Economic Development.
Khúc Văn Quý, Trần Quang Bảo & Hoàng Liên Sơn (2016). Phân tích các yếu tố ảnh huởng tới sự đa dạng hóa thu nhập của hộ gia đình tại vùng đệm vườn Quốc gia U Minh Hạ, Cà Mau. Tạp chí Nông nghiệp và Phát triển Nông thôn. 1: 118-125. Lanjouw P. & Feder G. (2001). Rural non-farm activities and rural development: From experience towards strategy. ResearchGate. Li D., Kojima D., Wu L. & Ando M. (2023). Digital ability and livelihood diversification in rural China. Sustainability. 15(16): 12443. Le T.H.S. & Nguyen H. H. (2024). Livelihood Vulnerability to Climate Change of Casava Smallholders in Central Highlands of Vietnam. Forest and Society. 8(2): 422-442. Lowder S.K., Sánchez M.V. & Bertini R. (2021). Which farms feed the world and has farmland become more concentrated? World development. 142: 105455.
Nguyễn Thị Mai (2019). Đa dạng hóa thu nhập khi rủi ro: trường hợp nông hộ Việt Nam. Tạp chí Phát triển Khoa học và Công nghệ - Kinh tế - Luật và Quản lý. 4(2). Marks D. (2018). Common challenges of smallholders in ASEAN: Lacking access to land, water, market, and state. In Water and power: Environmental governance and strategies for sustainability in the lower Mekong Basin. Cham: Springer International Publishing. pp. 253-281. Martin S.M. & Lorenzen K. (2016). Livelihood diversification in rural Laos. World development. 83: 231-243. Musumba M., Palm C.A., Komarek A.M., Mutuo P.K. & Kaya B. (2022). Household livelihood diversification in rural Africa. Agricultural economics. 53(2): 246-256. Mulia R., Simelton E., Nguyen T.Q. & Jirström M. (2021). Non-farm activities and impacts beyond the economy of rural households in Vietnam: A review and link to policies. Sustainability. 13(18): 10182. Musyoka P.K. & Onjala J. (2023). Livelihood diversification and household vulnerability to climate shocks in rural Kenya. International Journal of Economics Development Research (IJEDR). 4(1): 27-47. Matsuura‐Kannari M., Luh Y.H. & Islam A.H.M.S. (2023). Weather shocks, livelihood diversification, and household food security: Empirical evidence from rural Bangladesh. Agricultural Economics. 54(4): 455-470.
Nguyễn Thanh Nga, Đàm Thị Thu Trang, Nguyễn Thị Thanh Mai & Trịnh Thị Hường (2022). Ảnh hưởng của đa dạng sinh kế tới thu nhập của nông hộ tại Việt Nam: Kết quả từ phương pháp phân tích đa hợp. TNU Journal of Science and Technology. 227(12): 86-95. Nguyen A.T., Nguyen L T., Nguyen H.H., Van Ta H., Van Nguyen H., Pham T.A., Nguyen B.T., Pham T.T., Tang, N.T.T. & Hens L. (2020). Rural livelihood diversification of Dzao farmers in response to unpredictable risks associated with agriculture in Vietnamese Northern Mountains today: AT Nguyen et al. Environment, Development and Sustainability. 22(6): 5387-5407. Nguyen D.L., Nguyen T.T. & Grote U. (2023). Shocks, household consumption, and livelihood diversification: a comparative evidence from panel data in rural Thailand and Vietnam. Economic Change and Restructuring. 56(5): 3223-3255.
Nguyen Hac H., Nguyen Ngoc Lan C., Ho Le Phi K., Nguyen Tran Tieu P., Tran Cao U., Hoang Gia H. & Le T.H.S. (2024). Determinants of household livelihood diversification in the uplands: The case of cassava production areas in central highlands of Vietnam. Community Development. pp. 1-19.
Nguyễn Đức Quyền (2022). Tổng quan nghiên cứu về đa dạng hóa thu nhập của nông hộ. Tạp chí Khoa học Tây Nguyên. 16(53): 83-91.
Nguyễn Đức Quyền & Lê Đức Niêm (2023). Thu nhập và đa dạng thu nhập của nông hộ: Nghiên cứu trường hợp tỉnh Đắk Lắk. Tạp chí Kinh tế và Phát triển. (314): 46-56. Ongachi W. & Belinder I. (2025). Agricultural extension as a pathway to livelihood diversification and sustainable development in rural communities: a systematic review. BMC Agriculture. 1(1): 6. Onuoha O.C. (2024). Push-Pull Determinants of Livelihood Diversification among Rural Dwellers in Oil-Polluted Communities in Niger Delta, Nigeria. Journal of Social Development Studies. 5(1). Peng W., Robinson B.E., Zheng H., Li C., Wang F. & Li R. (2022). The limits of livelihood diversification and sustainable household well-being, evidence from China. Environmental Developmen. 43: 100736. Raveloaritiana E. & Wanger T.C. (2024). Decades matter: Agricultural diversification increases financial profitability, biodiversity, and ecosystem services over time. arXiv preprint arXiv:2403.05599. https://arxiv.org/abs/2403.05599 Scoones I. (2015). Sustainable livelihoods and rural development. Practical Action Publishing Rugby. Sibhatu K.T., Krishna V.V. & Qaim M. (2015). Production diversity and dietary diversity in smallholder farm households. Proceedings of the national academy of sciences. 112(34): 10657-10662. Tacconi F., Waha K., Ojeda J.J., Leith P., Mohammed C., Venables W.N., Rana J.C., Bhardwaj R., Yadav R., Ahlawat S.P., Hammond J. & van Wijk M. (2023). Farm diversification strategies, dietary diversity and farm size: Results from a cross-country sample in South and Southeast Asia. Global Food Security. 38: 100706. Tefera T., Gecho Y. & Wallole W. (2021). Factors Affecting the Level of Rural Households Livelihood Diversification in Gamo Zone, Southern Ethiopia. Asian Journal of Agricultural Extension. Economics & Sociology. 39(8): 19-32. Teji M.H. (2020). Determinants of income diversification among rural farm household in Soddo district, Gurage zone of southern Ethiopia. Developing Country Studies. 10(10): 7-18.
Truong Van T., Hanh T.T.H., Huynh Anh P. & Truong Quang D. (2025). Livelihood Transitions as Responses to Social-Ecological Stressors: Insights From the Central Coast of Viet Nam. The Journal of Environment & Development. 10704965251401392.
Trần Hương Giang, Mai Lan Phương, Hồ Ngọc Ninh & Trần Đình Thao (2023). Các yếu tố ảnh hưởng đến đa dạng sinh kế của các hộ dân tộc thiểu số di cư vào Tây Nguyên. Tạp chí Kinh tế và Phát triển. (314): 68-77. Tyenjana A. & Taruvinga A. (2019). Determinants of rural on-farm livelihoods diversification: the case of Intsika Yethu Local Municipality, Eastern Cape, South Africa. Journal of Agribusiness and Rural Development. 54(4): 373-384. Waha K., Accatino F., Godde C., Rigolot C., Bogard J., Domingues J.P., Gotor E., Herrero M., Martin G., Mason-D’Croz D., Tacconi F. & van Wijk M. (2022). The benefits and trade-offs of agricultural diversity for food security in low-and middle-income countries: A review of existing knowledge and evidence. Global Food Security. 33: 100645. Wang J., Konar M., Anderson P.N., Hadunka P. & Mulenga B. (2025). Impact of current and historical climate shocks on crop diversification in Zambia: Insights from household-and district-level observations. Climate Risk Management. 47: 100683. Waseem M., Li X., Jamil I., Islam A.H.M.S., Abbas Q., Raza M.H. & Eliw M. (2023). Do crop diversity and livestock production improve smallholder intra-household dietary diversity, nutrition and sustainable food production? Empirical evidence from Pakistan. Frontiers in Sustainable Food Systems. 7: 1143774. Werdofa Z.G., Kassahun S. & Gashu K. (2024). Household livelihood diversification and its determinant factors in Robe town and its surrounding hinterlands, Bale zone, southeast Ethiopia. Humanities and Social Sciences Communications. 11(1): 1-16. Weyori A.E. & Liebenehm S. (2024). Rainfall shocks, livelihood diversification and welfare: Evidence from rural Togo. Journal of African Economies. 33(3): 297-321. Winters P., Davis B., Carletto G., Covarrubias K., Quiñones E.J., Zezza A. & Stamoulis K. (2009). Assets, activities and rural income generation: Evidence from a multicountry analysis. World Development. 37(9): 1435-1452. Yussuf B.A. & Mohamed A.A. (2022). Factors Influencing Household Livelihood Diversification: The Case of Kebri Dahar District, Korahey Zone of Somali Region, Ethiopia. Advances in Agriculture. (1): 7868248.