The impact of mobile-based digital technology adoption on livelihood diversification : evidence from Ethiopia

Abstract

The integration of mobile phones and associated services into the diversification of livelihoods has the potential for rural transformation in developing nations. However, mobile-based technology adoption for livelihood activities in the Hadiya Zone, Ethiopia, remains inadequate. This study aims to investigate the impact of mobile-based technology adoption on livelihood diversification in the study area. The results of the instrumental variable Tobit show that mobile-based digital technology adoption positively and significantly influences livelihood diversification. This is evident particularly among the educated, men, remittance recipients, active labourers, landowners, urban residents, and traders. This underscores that the adoption of mobile-based technologies for livelihood activities is uneven, particularly among marginalised populations. Therefore, government, telecom companies, and development agencies should prioritise expanding network coverage, implement inclusive digital policies, and foster skills development. Additionally, promoting mobile money services and addressing affordability barriers are crucial to encouraging the adoption of mobile-based digital services for livelihood activities.