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«A Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy Approved November 2014 by the Graduate ...»

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I adapted the livelihood perspective by Ellis (2000) to setting-specific hypotheses in this unique context, a setting that has been an area of rapid socioeconomic and environmental changes. In Chapter 5-2, I examined how migration and household capitals affected the changes in agricultural activities, such as farming, renting land out, using chemical fertilizer, and raising poultry. In Chapter 5-3, I examined how migration and household capitals affected the changes in the modes of production, such as the transition from farming to non-farming at the household level, the transition to the first salary employment and the first business outside the home at the individual level. In Chapter 5I examined how migration and household capitals affected the transition from traditional energy sources to modern ones, and vice versa. In this concluding chapter, I briefly summarize the findings of each of the preceding substantive chapters. I also relate the specific findings in this dissertation to its implication to the broader literature as a whole, and I indicate the future directions in which each of these chapters may proceed.

Findings in the Changes in the Agricultural Activities In Chapter 5-2, I tested the effects of migration and each household capital on the changes in agricultural activities. Agricultural activities include farming, renting land out, using chemical fertilizer, and raising poultry. Increasing the size of farming land, the amount of chemical fertilizer used, and the number of poultry raised was considered to be

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land for rent, the amount of chemical fertilizer used, and the number of poultry raised was considered to be the process of agricultural de-intensification. I specifically hypothesized the moderating effect of each household capital on the association between migration and the changes in agricultural activities. Migration was measured with the sum of the monthly durations of migration of all household members over fifteen years old within the five years prior to the survey year when the dependent variables were measured.

Migration shows a positive association with the size of farming land and a negative association with the number of poultry. In the setting of the Chitwan Valley where agriculture is still the dominant mode of production, financial and social remittances from migration seem to be mostly utilized for agricultural activities. When migration is grouped into two types, domestic and international, each migration type does not show a positively or negative association with agricultural activities. Although there is not enough variation in domestic and international migration, duration seems to be more important factor than a type of migration.

Household capitals also show significant effects on agricultural activities. Human capital, in the form of available labor in a household, is shown to have a positive effect on agricultural activities. The education level of the youngest member in a household, another form of household capital, shows mixed effects: it is negatively associated with the size of farming while positively with the amount of chemical fertilizer. More education would give an individual a better chance in the non-farm sector. Thus, in the setting of increasing non-farm opportunities, education would work to stay away from

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education or an access to information. Therefore, it is not surprising that education is positively associated with the amount of chemical fertilizer.

Natural capital, especially having a good quality land, khet land, shows a negative association with the size of farming land and a positive one with the size of land for rent.

It seems that owning land for the households who had to work on farm as a tenant for subsistence gives some breathing space for those households to reduce their workload on agricultural activities and seek better opportunities to upgrade their livelihood in the offfarm or non-farm sector.

Physical capital, in the form of consumer items, shows a negative association with agricultural activities as well. Having more consumer items reduces the size of farming land and the number of poultry. These results make sense in that consumer items, which consists of the devices delivering information, especially from India and western countries, through the media, would be likely to inspire a household to go after urbanized life styles detached from agriculture.

Household capitals also show moderating effects on the association between migration and agricultural activities. Two conclusions are derived from the results of the interactions. First, the available household labor, which is human capital, plays an important role for farming households. A household with affluent labor tends to stay with farming activities more likely than a household with less labor with the support of the remittances from migration. Put it differently, how a farming household utilizes remittances from migration is contingent on available labor of a household. Related to this finding, a household tends to focus on one activity between labor-intensive

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labor of a household. Second, a household that previously invested a substantial amount of resources in agriculture tend to stay in what they have been doing. In sum, the results indicate that the livelihoods of the households in the Chitwan valley are getting diversified in the setting of rapidly changing socioeconomic and environmental conditions, and those households try to fully utilize their resources from migration and current assets to move forward.





Findings in the Changes in the Modes of Production In Chapter 5-3, I tested the effects of migration and each household capital on the changes in the modes of production. The modes of production include the transition from farming to non-farming at the household level and the transition to the first salary employment and out of home business at the individual level. I specifically hypothesized the moderating effect of each household capital on the association between migration and the changes in the modes of production. For the analysis of the transition out of farming at the household level, migration was measured with the sum of the monthly durations of migration of all household members over fifteen years old within the five years prior to the survey year when the dependent variables were measured. For the analysis of the transition at the individual level, domestic and international migration experience one year prior to the event are used.

At the household level, migration does not show any direct relationship with the transition out of farming. However, at the individual level, migration is negatively associated with the transition to the first salary employment. This result implies that

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and the decision on one transition over the other affects the direction of a household in the future. In addition, migration of other household members is positively associated with the transition to the first out of home business. This result implies that starting a business requires various types of help from other household members and it is the result of the sum of efforts by all household members.

Once individual characteristics are controlled, many of the household capitals do not show significant effects on the transition. Still, prior investment in agriculture seems to prevent a household from moving away from farming at the household level. At the individual level, good housing quality, poultry, and consumer items pushes an individual to start a business outside the home. Considering that those factors reflect a relatively higher socioeconomic status and a tendency to accept new ideas and values of a household, the results are not a big surprise. Further, additional labor in a household and higher education are positively associated with the transition out of farming at the household level. The result of labor seems to be the opposite of the results in the previous chapter. But they are not completely independent to each other. I argue that farming households could farm more with extra labor but the result supports the idea that they would eventually transition from farming to non-farming and seek opportunities in the non-farm sector. That would be the best livelihood diversification strategy for a farming household living in a society where socioeconomic and environmental conditions are rapidly changing.

Individual characteristics are also similar to the results of previous studies. Males are more likely to have a salary job or to start a new business compared to females, and

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understood in a patriarchal nature of a Nepal society. As expected, education encourages an individual to find an opportunity in the non-farm sector. This makes sense in that educated individuals would seek some opportunities to maximize their investment in education and salary jobs or starting a business would satisfy their needs.

Most of the household capitals do not show moderating effects on the association between migration and the modes of production with two exceptions. First, how many individuals in the same neighborhood work in the non-farm sector affects an individual to find a salary job and migration supports the transition. This is probably due to the fact that the flow of information is smoother when there are many people with the same interest in a reachable distance. Second, migration delays an individual to start an outside the home business but this effect decreases as the duration of migration increases. Again, it seems that starting a business out of home is a choice over the decision to migrate since they are two very different options for future livelihood.

In sum, the results show the livelihoods of the households in the Chitwan valley are getting diversified in the setting of rapidly changing socioeconomic and environmental conditions, and those households try to fully utilize their resources from migration and current assets to move forward.

Findings in the Changes in the Main Energy Source In Chapter 5-4, I tested the effects of migration and each household capital on energy transition: the changes in the main energy source. Energy transition includes the transition from traditional energy sources, such as fuel wood, sawdust, and biomass, to

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moderating effect of each household capital on the association between migration and energy transition. Migration was measured with the sum of the monthly durations of migration of all household members over fifteen years old within the five years prior to the survey year when the dependent variables were measured.

Migration shows a positive association with the transition from traditional energy sources to modern ones. By migration type, domestic migration shows a positive association while international migration partially shows a positive association. The results seem to assure that financial remittances as well as social remittances from migration help a rural household to purchase modern energy sources.

Among household capitals, the available labor in a household and education, as two main components of human capital, show significant associations with energy transition. Again, available labor of a household seems to play an important role for the livelihood of a rural farming household: collection of traditional energy sources. In addition, education shows a positive association with the transition as expected.

Physical capital, in the form of consumer items and housing quality, and social capital, in the form of the proportion of households using modern energy sources in the same neighborhood, also show positive associations with energy transition. The results imply that how much a household is used to modern life styles through the media and the sharing of information between households in the same neighborhood are important factors affecting the transition.

Though consumer items show significant impacts on the transition, there might be some theoretical concerns over the use of consumer items as an independent variable to

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consumer items include a television which would indicate two possibilities. First, it might indicate that a household possessing a television is already using electricity and this could be a sign of energy transition the survey failed to capture. Second, on the contrary, it might also indicate that a household with a television has a lower barrier for energy transition. This problem is arisen since the survey questions asked if a household is using each type of energy source only for cooking ignoring the fact that a household might use multiple energy sources at the same time. However, in my opinion, it is still a valid independent variable to be included in the models to predict energy transition. It is important to note that cooking is an everyday activity on which the livelihood of a household is based so that using electricity for cooking is more meaningful sign than using it for watching a television for energy transition. Further, watching a television could be an occasional leisure activity considering the availability and stability of electricity, and the cost of using it.

Household capitals also show moderating effects on the association between migration and energy transition. Two conclusions are derived from the results. First, having consumer items amplifies the effect of migration. Having more consumer items, such as radio, television, etc., would require more modern energy sources, especially electricity, so financial remittances from migration would be used to supply electricity.

Further, it could also mean that a household is more exposed to different life styles, especially western styles, and new information and experience in developed regions as a part of migration boosts the transition. Second, when a farming household already invested a substantial amount of resources in agricultural activities, such as livestock,

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understandable in that traditional energy sources are more accessible to farming households than non-farming households. In this case, financial remittances are more likely to be used to keep the current life style.



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