Analyzing the Effects of Rural Economy Diversification on the Livelihood Assets of Rural Households (Case Study: Khavmirabad District of Marivan County)

Abstract

Purpose- In this applied study, which has been done by descriptive-analytical method, various agricultural and non-agricultural economic activities, and their impacts on the villagers’ livelihood assets are analyzed.Design/methodology/approach- Data collection was both theoretical using documentary method and empirical using interviews, observation, and distribution of questionnaires among 260 heads of households in the villages of the district. The sample size was determined by the Cochran method from a population size of 2736 households.  The questionnaires were distributed among random heads of households as well as the sample villages that were selected by a stratified method.Findings- The analysis showed that the created economic diversity was able to increase the villagers’ livelihood capital, and among them, financial capital has had the greatest impact on improving the level of livelihood capital for the villagers.Research limitations/implications- Among the limitations of the study were the dispersion of a large number of villages in the border area, lack of easy access to these villages, lack of cooperation in providing information, and the villagers’ problem with completing questionnaires.Practical implications-  The practical solutions of the study can be: prepare for the development and expansion of tourism (rural, commercial, and nature tourism), Making the necessary legal, administrative, and supportive bases for the development of entrepreneurship and domestic & foreign private sector investment (Iraqi Kurdistan region), Development of trade in goods from the border markets, and Support the formation of fundraising from the micro-savings in the villages for investment and launching production activities in the villages of the district.Originality/Value- Today, the predominant approach of rural planning to eliminate poverty as the most important obstacle to rural development is to provide sustainable livelihoods for villagers. In this regard, the main strategy of this approach is to diversify the rural economy and to bring about various agricultural and non-agricultural income resources in rural areas, so that the villagers’ assets will be increased and/or preserved, which is the core of the sustainable livelihood approach and the main factor of sustainable rural livelihood.