Determinants of Rural Poverty in Southern Ethiopia: Empirical Evidence from Gedeo Zone

Abstract

Poverty especially in the rural areas has turned out to be a great global social and economic challenge in this 21^st century. Poverty is a complex, interlocked and multidimensional phenomenon. It is lack and deprivations of decent life sustaining resources that people experiences at various degrees so as different life chances. This study was carried out in southern Ethiopia with empirical evidence from Gedeo zone. The specific objective of the study was to investigate determinants of rural poverty. In order to achieve its objective, the study made use of the primary data collected through survey and interview using semi structured questionnaire. The study employed a multi-stage sampling procedure for sample selection. Employing cross sectional design, the research was undertaken on a random sample of 325 households in the study area. An absolute poverty line set in the study area using CBN approach; based on food basket of 2200 Kcal per adult per day was used to identify the poor from non-poor households. Accordingly, the absolute poverty line of Birr 4463.35 was used in the study area.  The binary logistic regression model was employed so as to investigate determinants of rural poverty in the study area. The model output  revealed that the number of livestock holding, land size , number of chicken owned,  beehives ownership, Annual Income per Adult Equivalent, use of modern agricultural inputs , involvement in non-farm activities and saving habit of households were  variables found with negative impact and significant determinants of poverty. Whereas, the variables with positive impact on household poverty and found to be significant were family size, age of household head and dependency ratio. Therefore,  alleviation of rural poverty in the study area  in particular and rural Ethiopia in general requires policy formulation and adoption of  strategies with respect to those variables found to have a significant  effect on poverty status of rural households.

Keywords: Rural, poverty; Logistic regression; Determinants

DOI: 10.7176/JESD/11-7-06

Publication date: April 30^th 2020