Volume 5, Issue 3, May 2020, Page: 49-62
Intensity and Determinants of Rural Poverty in Banja District of Awi Zone, Amhara National Regional State, Ethiopia
Desalegn Teshale Woldie, Agricultural Economics Research Directorate, Ethiopian Institute of Agricultural Research (EIAR), Pawe Research Centre, Pawe, Ethiopia
Jema Haji, School of Agricultural Economics & Agri-business Management, Haramaya University, Haramaya, Ethiopia
Abule Mehare, School of Agricultural Economics & Agri-business Management, Haramaya University, Haramaya, Ethiopia
Received: Mar. 25, 2020;       Accepted: May 11, 2020;       Published: May 29, 2020
DOI: 10.11648/j.ijae.20200503.11      View  147      Downloads  82
Abstract
Poverty is one of the most serious problems of human deprivation and a complex phenomenon. Ethiopian government have been implementing different poverty reduction programs and strategies to fight extreme hunger and poverty. The struggle to reduce rural poverty at household level is a continuing challenge. This study was conducted in Banja district of Awi zone Amhara regional state. The specific objectives of this study were to estimate the rural poverty status, to identify factors determining rural poverty and to estimate the average exit time of poor households. In order to achieve these objectives, cross sectional data on human capital, physical capital, financial capital, natural capital and other institutional characteristics were collected from 190 households drawn from randomly selected five kebeles using structured household questioner. Descriptive and inferential statistics, and econometric model were used to analyze data on poverty status and poverty level, respectively. Hence, setting the poverty line, identifying poor and non-poor rural households, measuring the incidence, depth and severity, and mean comparison between the groups were made. Accordingly, using Cost of Basic Needs approach, the estimated poverty line was Birr 4301 per adult equivalent per year. The Foster Greer and Thorbeck measure of poverty found that 44 percent of sample households were found below poverty line and the poverty gap and poverty severity were 9 percent and 2 percent, respectively. The estimated average exit time of the poor households based on the five-year average per capita Gross Domestic Product growth rate was 3.35 years. Tobit model result showed that household size significantly and positively influence poverty whereas number of livestock and oxen ownership, educational level of the household head, input utilization, asset ownership and credit utilization negatively influenced poverty in the study area. The result suggests that improving adult education, provision of input for smallholder farmers, improving access and availability of credit, improving the livestock sector will be important policy interventions.
Keywords
Rural Poverty, Banja, Determinant, Tobit
To cite this article
Desalegn Teshale Woldie, Jema Haji, Abule Mehare, Intensity and Determinants of Rural Poverty in Banja District of Awi Zone, Amhara National Regional State, Ethiopia, International Journal of Agricultural Economics. Special Issue: Agricultural Economics and Its Related. Vol. 5, No. 3, 2020, pp. 49-62. doi: 10.11648/j.ijae.20200503.11
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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