The response of nonfarm income to conditions in agricultural markets : an application of multivariate analysis of variance (MANOVA)

Abstract

The Multivariate Analysis of Variance (MANOVA) is applied on data of 157 households from the Northern Province to test the significance of the response of nonfarm earnings to the access of agricultural markets. The market access (and their interactions) involved cash market, exchange for finished product, and value adding at household level, while the nonfarm income responses emanated from local sources, commuting, and migration. The results reflect that nonfarm incomes are not crucial when farmers have access to all market options, since they can generate both income and ensure food security from farming. However, when markets are not fully accessible, nonfarm incomes (from migrants and local sources) tend to play a supplementary role. By the nature of its entrance requirements, income from commuting is not a result of conditions in the markets. Nonetheless, there is enough evidence of linkages between conditions in agricultural markets and engagement in nonfarm income. To enhance such linkages would require provision of infrastructure, communications, information and transport networks.