Abstract

This study identifies the extent and determinants of rural poverty in southern Ethiopia, Doyogena district. The study used 150 households, using a household consumption expenditure approach by employing the FGT (Foster-Greer and Thorbecke, 1984) poverty index to determine the extent of rural poverty. The study’s result shows that the total head count index, poverty gag, and poverty severity indexes are 0.438, 0.25, and 0.1452 respectively. Moreover, based on the Binary Logistic regression model output of sample households, there is a significant difference in the poverty level among the poor and non-poor sampled households in terms of factors such as the size of cultivated land, remittances, dependency ratio, participation on off-farm activities, livestock ownership and use of improved seeds were significant up to10% probability level. Whereas, the age, education, and sex of sampled household heads access to extension service and credit service were not statistically significant. The finding reveals that most of the non-poor households are engaged in more than one livelihood options. On the other hand, income diversification can contribute a certain percentage to help poor households escape extern poverty and Non-agriculture sector should be developed to diversify the income sources of poor households. Key words: Determinant, extents, rural poverty, binary logistic model.

Highlights

  • Ethiopia still ranks among the least developed countries in the world (Ayalneh et al, 2008; United Nations Development Program (UNDP), 2010; 2013; 2014: World Bank, 2009)

  • The Ethiopian Central Statistical Agency (CSA), (2013) assessed the 2012/2013 households consumption, income and expenditure (HICE) Survey results shows the majority of people in Ethiopia are living in rural areas(83%), where poverty is more widespread in rural

  • This study has studied the extent and the determinants of poverty in Doyogena districts in rural areas of southern Ethiopia

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Summary

INTRODUCTION

Ethiopia still ranks among the least developed countries in the world (Ayalneh et al, 2008; United Nations Development Program (UNDP), 2010; 2013; 2014: World Bank, 2009). In Ethiopia, 87.3 6% of the population lived in multidimensional poverty in urban areas. The Ethiopian Ministry of Finance and Economic Development (MoFED) examined that, poverty is a serious challenge confronting Ethiopia, the most prevalent and pervasive social problems of the country (MoFED, 2011; 2012). Examination of poverty situation at regional, zonal or household levels to identify the specific characteristic of the problem is very important. Having this background, this study tried to assess the level of poverty and its socio-economic and demographic determinants in rural households in Doyogena District, southern regional state of Ethiopia

METHODOLOGY
Econometric methodology
Conclusion
Findings
13 Access to micro credit service 14 Productive Safety Net Participation
Full Text
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