Abstract:
This study examines the main determinants of rural household poverty in the district of Dejen
Amhara regional state using primary data collected through questionnaires’. Through multistage sampling technique data was collected from a total of 204 sample households through
structured questionnaire from rural area of Dejen district in the year 2016. The FGT poverty
index (Foster, Greer and Thorbecke) is employed to examine the extent and severity of rural
poverty in Dejen. Accordingly, nearly 49% of the sampled rural households’ lives below poverty
line with an average poverty gap of 0.083 and poverty severity gap of 0.065. The multiple
regression analysis was employed to analysis factors determining households’ consumption
expenditure and age of household heads, household size, proximity to the nearest market center
and livestock ownership are the main determinant factors. The probit model was also used to
analyze the main determinants of poverty. Based on the probit model analysis output, household
size, sex of households, dependency ratio and livestock ownership are found to be the key
determinants of rural poverty. Poverty status is negatively correlated with total number of
livestock a household owned in tropical livestock unit (TLU) and found to be the most significant
determinants of poverty that reduces the probability of a household being in sever rural poverty.
On one hand, family size and dependency ratio are positively related to poverty status of
households. So, as parts of policy implication this study suggests that promoting and giving
awareness about family planning and putting the existing policy in effect and integrated health
service with appropriate access would result in curbing the degree of poverty among rural
households. And also the government through its policies should address problems relating to
higher population in rural areas and try to boost rural household’s income by: creating linkage
with in the rural under developed agriculture. Accordingly, technical advice and training, how to
use their cattle’s, should offer from the concerned body in order to strengthen their benefits for
the rural poor and help them to exit from poverty. There should be also a need to encourage and
give awareness to the population that females are productive and means of development and a
way to combat poverty and gender basis development policy measures targeting anti-poverty
involvements are useful to curb poverty in rural areas of Dejen
