Determinants of rural poverty in Ethiopia A Household level analysis in the case of Dejen district

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