Long-run rural livelihood diversification in Kagera, Tanzania

What drives livelihood diversification among predominantly rural households in developing countries and how can welfare-enhancing patterns be established sustained the long run? A large literature has focused on whether income is a means of survival or accumulation, but it remains inconclusive. We first examine pattern for panel Tanzania from 1990s—the Kagera Health Development Survey—with focus primarily driven by survivalist accumulation motives. then verify this run using 2004 wave survey while also studying role that infrastructural improvements entry into new generation activities play process. Our results support hypothesis: richer engage more than poorer households. find greater better-off was observed 1990s persists 2004. At same time, were originally are found to experience higher incomes diversifying off-farm self-employment activities. Factors explain these include access daily market public transport.