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Value Chain Analysis for Development×Livelihood Diversification Analysis×
FieldDevelopment StudiesDevelopment Studies
FamilyProcess / pipelineProcess / pipeline
Year of origin20011998
OriginatorRaphael Kaplinsky & Mike Morris; Gary Gereffi, John Humphrey & Timothy SturgeonFrank Ellis; Christopher Barrett, Thomas Reardon & Patrick Webb
TypeSystemic market and sectoral analysis frameworkQuantitative and analytical method for studying livelihood portfolios
Seminal sourceKaplinsky, R., & Morris, M. (2001). A Handbook for Value Chain Research. Institute of Development Studies / IDRC, Brighton. link ↗Ellis, F. (1998). Household strategies and rural livelihood diversification. The Journal of Development Studies, 35(1), 1-38. DOI ↗
AliasesPro-Poor Value Chain Analysis, Inclusive Value Chain Analysis, Global Value Chain Analysis, Value Chain DevelopmentIncome diversification analysis, Rural diversification analysis, Livelihood portfolio analysis, Diversification index analysis
Related44
SummaryValue Chain Analysis examines the full sequence of activities required to bring a product or service from conception through production to final consumers and beyond, asking who does what, who governs the chain, and how the value created is distributed among participants. In its development and pro-poor variant, codified in Kaplinsky and Morris's IDS handbook and grounded in Gereffi's global-value-chain theory, the method is used to identify how poor producers and workers can capture a larger or more secure share of value through upgrading and inclusion.Livelihood diversification analysis studies how rural households spread their activities and income across multiple sources rather than relying on a single occupation or crop. Developed conceptually by Frank Ellis and refined empirically by Christopher Barrett, Thomas Reardon, and Patrick Webb, it combines the enumeration and classification of household income activities with quantitative measures of diversity — the number of income sources, the share of non-farm income, and concentration indices such as the Herfindahl or Simpson index — to characterise livelihood portfolios and distinguish diversification driven by distress from that driven by opportunity.
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ScholarGateCompare methods: Value Chain Analysis for Development · Livelihood Diversification Analysis. Retrieved 2026-06-24 from https://scholargate.app/en/compare