The Effect of Non-Farm Activities on Rural Household Consumption in Sudan: Evidence from Endogenous Switching Regression Model
Date
2026
Authors
Mohammed Elhaj Mustafa Ali
Ebaidalla Mahajoub Ebaidalla
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Despite the growing prevalence of non-farm activities (NFA) in rural Sudan, their implications for household consumption and welfare remain underexplored. This study investigates the determinants of rural household participation in NFAs and assesses their impact on household consumption levels in Sudan. The research utilizes data from the 2015 Sudan National Baseline Household Survey (NBHS) and applies an endogenous switching regression model (ESRM) to address potential selection bias and endogeneity. This methodology jointly estimates the decision to participate in NFAs and the corresponding consumption outcomes for participant and non-participant households.
The results show that household head gender, education, age, media access, credit access, rain-fed irrigation, farm income, distance to urban centers, and regional location significantly impact both NFA participation and household consumption. Treatment effect estimates indicate that NFA engagement significantly increases total and food consumption, with results consistent across wage employment and self-employment types. This study makes key contributions to the literature by being the first to empirically assess the impact of NFAs on household consumption in Sudan. Additionally, it provides novel insights into the heterogeneous welfare outcomes of wage-based versus self-employment NFAs in rural areas.