Analysis of the Impact of Agro-Industry on the Assets of Worker's households With a Sustainable Livelihood Approach: A Case Study in Meyan-Ab Agro-Industries

One of the strategies for rural development is promoting agro-industries in rural areas. Also agro-industries can create sustainable rural livelihoods. Agro-industry refers to any activity involved in cultivation plus under controlled conditions of agricultural and horticultural crops. Development of agro-industries is considered important in the economic planning and development of countries. Promoting and supporting family agro-industry livelihood systems could provide alternative livelihood opportunities for rural people and enhance the possibility of local development. This descriptive-analytical research aims to analyze the effects of agro-industry on the improvement of livelihood assets of agro-industry members in Khuzestan Province. Using Cronbach α, the reliability of questionnaire was calculated as 0.92. A confirmatory factor analysis and the structural equation model using the LISREL were performed to measure different effects of agro-industry on sustainable livelihoods assets. According to the applied LISREL, the main findings were as follows: AGFI=0.90, GFI=0.98, NNFI=0.97, CFI=0.98, and RMSEA=0.066 and 1.51. Results revealed that out of these five resources, natural capital was the strongest one affecting respondents’ livelihoods in the study area (λ=0.90). The results show that the measurement model fit is appropriate and acceptable.