Impact of urban expansion to peri-urban smallholder farmers' poverty in Tigray, North Ethiopia

Abstract

Urban expansion in African and other developing countries occurred and happening by encroaching fertile agricultural land. As a result, close to fifteen million people are displaced every year. This paper examines the consequences of urban expansion on peri-urban farmers' poverty. Data was generated from 341 (101 treated, 240 control) smallholder Peri-urban farmers'. Inferential statistics, propensity score matching (PSM), econometric models, and poverty measurements were applied and analyzed using Stata version 14 software. The impact assessment estimation showed the prevalence of poverty was higher by 5% poverty than non-displaced households. The intensity and incidence of poverty were also found higher among displaced households. Displaced and non-displaced households were deprived 49.4% and 46.5% of weighted indicators respectively, while the incidence of poverty was found 69% and 59% respectively. In sum, 34.1% of displaced and 27.4% of non-displaced households were poor. Besides the overall percentage of contribution of education, health, and living standard dimensions were 15.4%, 28.8%, and 55.8% among displaced households respectively. While percentage contribution of education, health, and living standard among non-displaced households were 15.1%, 26%, and 58.9% respectively. Therefore, the prevalence of poverty was higher in displaced households than in non-displaced households. The binary logistic regression also revealed out of the 13 covariates only four variables were found statistically significant. Of the four variables, except treatment effect or being displaced the rest variables family size, farming experience, and market distance were negatively affect household poverty. In conclusion, in all aspects, the result indicated that the prevalence of poverty was higher among evicted farmers. Therefore, government bodies should design strong strategies to avert the impact of urban expansion on peri-urban farmers. A separate department should be established which follow and provide training on time, and horizontal urban expansion should be changed to vertical expansion.