Application of Ordered Logit Model to Analyze Determinants of Rural Households Multidimensional Poverty in Western Ethiopia (Published)
Rural households’ multidimensional poverty is still widespread and severe everywhere. For instance, worldwide a total of 1.45 billion people from 103 countries are multidimensional poor, most MPI poor people (72%) of them live-in middle-income countries. In East Africa, 559 million (42%) people are multidimensional poor. In Ethiopia, the new global 2018 multidimensional poverty index revealed that 49% of the Ethiopian population is multidimensional poor. A thorough analysis of the nature and determinants of multidimensional poverty is a key input for interventions to curb this horrific enemy of mankind. Thus, the general objective of the current study is an analysis of the status and determinants of rural households’ multidimensional poverty in Jimma Geneti woreda (Ethiopia). A mixed-methods approach is used to achieve the research objective. Primary data are collected from 387 randomly selected rural households using survey questionnaires. In the analysis of the data, both descriptive and inferential statistics are used. The ordered logistic regression model is employed to investigate the determinants of being multidimensional poor. Results of the descriptive analysis show that 80.1% of the sample respondents are multidimensional poor. The intensity of poverty is 66.3% and the adjusted headcount ratio is found 53.1%. Dimensionally, the living standard dimension is the highest contributor to the overall multidimensional poor of the sample households (42.5%) followed by the education dimension (36.7%) and health dimension (20.9%. Among eleven multidimensional poverty index indicators, school attendance indicators (19.9%) and years of schooling indicators (16.8%) have the highest relative contribution to the overall multidimensional poverty index of the study area. The coastal area has contributed a total of 28.1% to the overall 80.1% of the incidence of poverty. Furthermore, results of the regression analysis indicated that kebele dummy, marital status, literacy status, farm size, and membership to cooperatives of households are found significant determinants of households being multidimensional poor. Policy implications that give top priority to living standard, education, and health dimensions respectively, that benefit sample households from the coastal area and that give due consideration to significant variables in poverty reduction efforts required.
Keywords: Ethiopia, Jimma Geneti woreda, Rural Households, multidimensional poverty, ordered logit (ologit) model
Market Structure and Chain Analysis of Haricot Bean (Phaseolus Vulgaris L) (Published)
Haricot bean is now becoming one of the most reputable crops for its role for human consumption. A research was undertaken in Enebse Sar Midir district, northern Ethiopia, with the objectives of identifying the different marketing channels, evaluating the marketing margins and examining the market structure. Data were gathered using formal and informal methods of data collection and processed using SPSS-20. The result revealed that a total of 15,200 tons of haricot bean was produced in the district in and of this; 13,468 tons was found to pass through the marketing channels during 2011/2012. Following the marketing chains, 7 marketing channels were identified. Market concentration measures indicated that markets were found to be strongly oligopolistic and inefficient in structure (with wide final consumers’ price spread). Gross marketing margin was maximum for city wholesalers (38.60%) and minimum for farmer traders (13.22%) of the consumers’ price). Net marketing margin was maximum (11.52%) for processors and minimum (7.36) for rural assemblers. In order to empower producers, marketing actors and intensify the existing business, the structure and efficiency of haricot bean markets have to be improved. Empowering producers with financially (facilitating credit) and training can improve the market structure and performance.
Keywords: Ethiopia, Market Concentration, Market Efficiency, Marketing Actors, Oligopoly.
DETERMINANTS OF HOUSEHOLD SAVING IN ETHIOPIA: A CASE OF NORTH GONDAR ZONE, AMHARA REGIONAL STATE (Published)
Development economics have for several decades recognized the importance of the mobilization of domestic savings for economic growth in developing countries. However, saving level in Ethiopia is very low and little is known empirically about its patterns and determinants. Therefore, this study attempts to identify and analyze the main determinants of household saving in Ethiopia giving special emphasis to North Gondar zone on three selected districts i.e. Gondar, Dembia and Dabat using survey data collected from 604 sample households in August 2013. The results of the descriptive analyses shows that 54.1% of sample households practiced saving and the common reasons for households not to save are low income, inflation, low interest rate, cultural background, education, social affairs and unemployment. The planning and expenditure controlling habit of most respondents was also found minimal. Besides, the economic analyses shows that income, age, sex, marital status, forms of institutions used for saving and frequency of getting money are significant determinants of household savings in the study area. Based on these findings, we recommend that government policy intervention should focus on increasing the availability and accessibility of financial institutions, awareness creation and education on the importance saving and saving modalities, planning and expenditure controlling habit, socio-cultural saving barriers, increasing interest rate, and inflation and unemployment combating strategies to augment saving capacity, investment and then economic growth.
Keywords: Ethiopia, Household saving behaviors, North Gondar Zone, saving determinants
Impact Analysis of Mede Telila Small Scale Irrigation Scheme on House Poverty Alleviation: Case of Gorogutu District in Eastern Haratghe Oromia National Regional State Ethiopia (Published)
The main objective of the study was to access the impact of Mede Telilasmall-scale irrigation scheme on household poverty alleviation in Gorogutu District of Eastern Hararghe, Oromia National Regional State, Ethiopia. To achieve the objective of the study, data were collected from 200 households, 100 from participants and 100 from non-participants in the irrigation scheme, in the study district. Descriptive statistics, the Foster, Greer and Thobeck (FGT) poverty indices and Propensity Score Matching (PSM) were used to analyze the data. The study revealed that the small-scale irrigation scheme significantly reduced the incidence, the depth and the severity of households’ poverty in the study district. The empirical model also revealed that access to the irrigation scheme significantly influenced the households’ consumption expenditure level. The Average Treatment effect of Treated (ATT) indicated that, the per capita consumption expenditure of irrigation users is 25% more than non-users of irrigation. These results indicate that the small-scale irrigation scheme improved the livelihood of households in the study district.
Keywords: Consumption Expenditure, Ethiopia, Gorogutu, Household Poverty, Impact, Irrigation Scheme