REVIEW ON DETERMINANTS OF SUSTAINABLE RURAL LIVELIHOOD DIVERSIFICATION OF SMALL HOLDER FARMERS IN ETHIOPIA

Diversification is a norm in every economy, particularly in rural Africa, where farming alone rarely provides sufficient income. The diversity of rural livelihoods in low income developing countries is receiving increased attention in discussions about rural poverty reduction, since the late 1990s. There are several determinants to successful sustainable livelihood diversification operate at different levels i.e. macro, meso and micro levels. There had been many studies conducted to identify determinants of livelihood diversification in Ethiopia in different region, but there is limitation of summarization on current state of understanding on livelihood diversification determinants. There is a general agreement in the literature that the driving forces of diversification operate at different levels. Determinants based on individuals and households response to incentives of livelihood diversification fall into two broad categories: ?push? versus ?pull? factors and different socio-economic factors influence household?s sustainable livelihood diversification .A number of studies have analyses through Empirical models to determinants of livelihood diversification, but compared to other model the double-hurdle model help gives good estimate of determinants.