Diversification of income is considered as an effective way to increase household wellbeing in the developing countries. However, scant attention has been given on this issue in the context of Bangladesh. Thus, the objective of this study is to present an empirical evidence of the state of income diversification and its impact on households’ wellbeing in the rural areas of Rajshahi district of Bangladesh. To this end a multi-stage random sampling technique is used to select 138 households from the study area. In analyzing the collected data, the Simpson Index of Diversity (SID) is calculated to measure the level of income diversification while household consumption expenditure is used for measuring the level of well-being. Finally, a multiple regression model is employed to determine the factors affecting households’ wellbeing. The findings of the study indicate that the extent of income diversification is very low in the study area and it has positive and significant effect on households’ wellbeing. The obtained results have important policy implications which imply that programs targeted to engage people in other income generating activities would augment their income sources. As measures from the part of the government reducing the rate of interest for private enterprising in the rural sector, development of rural infrastructure and improving information facilities at the rural areas are suggested.
| Published in | International Journal of Business and Economics Research (Volume 4, Issue 3) |
| DOI | 10.11648/j.ijber.20150403.20 |
| Page(s) | 172-179 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Income Diversification, Rural Household, Simpson Index, Household Wellbeing, Bangladesh
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APA Style
Naznin Sultana, Md. Elias Hossain, Md. Khairul Islam. (2015). Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh. International Journal of Business and Economics Research, 4(3), 172-179. https://doi.org/10.11648/j.ijber.20150403.20
ACS Style
Naznin Sultana; Md. Elias Hossain; Md. Khairul Islam. Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh. Int. J. Bus. Econ. Res. 2015, 4(3), 172-179. doi: 10.11648/j.ijber.20150403.20
AMA Style
Naznin Sultana, Md. Elias Hossain, Md. Khairul Islam. Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh. Int J Bus Econ Res. 2015;4(3):172-179. doi: 10.11648/j.ijber.20150403.20
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Download@article{10.11648/j.ijber.20150403.20,
author = {Naznin Sultana and Md. Elias Hossain and Md. Khairul Islam},
title = {Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh},
journal = {International Journal of Business and Economics Research},
volume = {4},
number = {3},
pages = {172-179},
doi = {10.11648/j.ijber.20150403.20},
url = {https://doi.org/10.11648/j.ijber.20150403.20},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150403.20},
abstract = {Diversification of income is considered as an effective way to increase household wellbeing in the developing countries. However, scant attention has been given on this issue in the context of Bangladesh. Thus, the objective of this study is to present an empirical evidence of the state of income diversification and its impact on households’ wellbeing in the rural areas of Rajshahi district of Bangladesh. To this end a multi-stage random sampling technique is used to select 138 households from the study area. In analyzing the collected data, the Simpson Index of Diversity (SID) is calculated to measure the level of income diversification while household consumption expenditure is used for measuring the level of well-being. Finally, a multiple regression model is employed to determine the factors affecting households’ wellbeing. The findings of the study indicate that the extent of income diversification is very low in the study area and it has positive and significant effect on households’ wellbeing. The obtained results have important policy implications which imply that programs targeted to engage people in other income generating activities would augment their income sources. As measures from the part of the government reducing the rate of interest for private enterprising in the rural sector, development of rural infrastructure and improving information facilities at the rural areas are suggested.},
year = {2015}
}
TY - JOUR T1 - Income Diversification and Household Well-Being: A Case Study in Rural Areas of Bangladesh AU - Naznin Sultana AU - Md. Elias Hossain AU - Md. Khairul Islam Y1 - 2015/06/11 PY - 2015 N1 - https://doi.org/10.11648/j.ijber.20150403.20 DO - 10.11648/j.ijber.20150403.20 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 172 EP - 179 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20150403.20 AB - Diversification of income is considered as an effective way to increase household wellbeing in the developing countries. However, scant attention has been given on this issue in the context of Bangladesh. Thus, the objective of this study is to present an empirical evidence of the state of income diversification and its impact on households’ wellbeing in the rural areas of Rajshahi district of Bangladesh. To this end a multi-stage random sampling technique is used to select 138 households from the study area. In analyzing the collected data, the Simpson Index of Diversity (SID) is calculated to measure the level of income diversification while household consumption expenditure is used for measuring the level of well-being. Finally, a multiple regression model is employed to determine the factors affecting households’ wellbeing. The findings of the study indicate that the extent of income diversification is very low in the study area and it has positive and significant effect on households’ wellbeing. The obtained results have important policy implications which imply that programs targeted to engage people in other income generating activities would augment their income sources. As measures from the part of the government reducing the rate of interest for private enterprising in the rural sector, development of rural infrastructure and improving information facilities at the rural areas are suggested. VL - 4 IS - 3 ER -
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