Impact of off-farm income diversification on consumption, diets and under-five nutrition status: Evidence from Malawi 2010 – 2019 data

Malnutrition, in all its forms, is a leading cause of poor health on a global scale. Malawi's malnutrition remains a significant issue despite abundant natural resources, including fertile land and a favourable climate. Agriculture alone fails to provide smooth income profiles, justifying the need for off-farm income diversification. The study uses propensity score matching (PSM) and Inverse-Probability-Weighted Regression Adjustment (IPWRA), a doubly-robust estimator, to assess the impacts of off-farm economic activity on consumption and nutrition outcomes. We utilize decade-long Malawi Living Standards Measurement Surveys (LSMS) data from the years 2010, 2016 and 2019 to examine the impacts of participating in off-farm economic activity on consumption and nutrition outcomes. After balancing covariates, the study reveals a positive and significant impact on real per capita consumption, dietary diversity and under-five nutrition outcomes. Therefore, we suggest that for the Malawi economy to continue shifting away from agriculture as the dominant source of micro and national revenue, policymakers should offer incentives and training that support non-farm income-generating activities of farm families.