Participation in and Impact of Small-Scale Irrigation Practice on Household Income: the Case of Abay Chomen District of Oromia National Regional State, Ethiopia
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PARTICIPATION IN AND IMPACT OF SMALL-SCALE IRRIGATION PRACTICE ON HOUSEHOLD INCOME: THE CASE OF ABAY CHOMEN DISTRICT OF OROMIA NATIONAL REGIONAL STATE, ETHIOPIA MSc THESIS TEMESGEN HIRKO LEBETA AUGUST 2017 HARAMAYA UNIVERSITY, HARAMAYA Participation in and Impact of Small-Scale Irrigation Practice on Household Income: The Case of Abay Chomen District of Oromia National Regional State, Ethiopia A Thesis Submitted to School of Agricultural Economics and Agribusiness, Postgraduate Program Directorate, HARAMAYA UNIVERSITY In Partial Fulfillment of the Requirements for the Degree of MASTER OF SCIENCE IN AGRICULTURE (AGRICULTURAL AND APPLIED ECONOMICS) Temesgen Hirko Lebeta August 2017 Haramaya University, Haramaya HARAMAYA UNIVERSITY POSTGRADUATE PROGRAM DIRECTORATE As thesis research advisor, I hereby certify that I have read and evaluated this thesis prepared, under my guidance, by Temesgen Hirko, entitled “Participation in and Impact of Small-Scale Irrigation Practice on Household Income: The Case of Abay Chomen District of Oromia National Regional State, Ethiopia” and I recommend that it be accepted as fulfilling the thesis requirement. Mengistu Ketema (PhD, Associate Professor) ____________ ______________ Major advisor Signature Date Fekadu Beyene (PhD, Professor) _____________ _______________ Co-advisor Signature Date As member of the Board of Examiners of the MSc Thesis Open Defense Examination, we certify that we have read, and evaluated the thesis prepared by Temesgen Hirko, and examined the candidate. We recommended that the thesis be accepted as fulfilling the Thesis requirement for the degree of Master of Science in Agriculture (Agricultural and Applied Economics). ________________________ _____________________ ________________ Chairperson Signature Date ________________________ ______________________ _________________ Internal examiner Signature Date ________________________ ______________________ _________________ External examiner Signature Date ii DEDICATION I dedicated this thesis to Oromo people those unfairly displaced from Ethiopian Somali region and passed away by hidden hands. iii STATEMENT OF AUTHOR By my signature below, I declare that this Thesis is my own work. I have followed all ethical and technical principles of scholarship in the preparation, data collection, data analysis and compilation of this Thesis. Any scholarly matter that is included in the Thesis has been given recognition through citation. This Thesis is submitted in partial fulfillment of the requirements for a Master of Science degree at Haramaya University. The Thesis is deposited at Haramaya University Library and is made available to borrowers under the rules of the Library. I solemnly declare that this Thesis is not submitted to any other institution anywhere for the award of any academic degree, diploma, or certificate. Brief quotations from this Thesis may be made without special permission provided that accurate and complete acknowledgement of source is made. Requests for permission for extended quotations from or reproduction of this Thesis in whole or in part may be granted by the head of the school or Department, when in his or her judgment the proposed use of the material is in the interests of scholarship. In all other instances, however, permission must be obtained from the author of the Thesis. Name: Temesgen Hirko Signature: ---------------- Place: Haramaya University, Haramaya Date of Submission: 18/08/2017 iv BIOGRAPHICAL SKETCH The author was born to his father Hirko Lebeta and his mother Tiru Hulluqa in Horro Guduru Wollega zone of Oromia Region, Ethiopia, on February 21, 1989. He attended his Elementary education at Fincha Model School and Fincha Elementary School, and Secondary and preparatory education at Fincha Senior Secondary School and Fincha Preparatory School respectively. He joined Haramaya University in November 2008 and successfully completed his Bachelor of Science degree study in Agricultural Economics and graduated on July 9, 2011. Immediately after graduation, the author was employed in former Ethiopian Meat and Dairy Industry Development Institute and worked for 2 years and six months as Monitoring and Evaluation expert. After that, he joined Wolkite University in May 2014 as Graduate Assistant and had worked in teaching Bachelor of Science degree program students in Agricultural Economics. In October 2015, he joined Haramaya University to pursue his post-graduate study in the department of Agricultural and Applied Economics. v ACKNOWLEDGMENTS First and foremost I praise and honor my Lord Jesus Christ for the opportunity and capacity given to me to realize my aspiration. My particular appreciation and deepest gratitude goes to Dr. Mengistu Ketema, my major advisor, without his involvement, the accomplishment of this research would have been difficult. Besides, his gentle advisor-ship from the early design of the research proposal to the final write-up of the thesis by adding valuable, constructive and ever-teaching comments, highly improved the contents of the thesis. I want to extend my deepest gratitude and special thanks to my co-advisor, Professor Fekadu Beyene, for his useful comments during preparing the research proposal, questionnaire development and in writing the thesis. I would like to express my special thanks to Mr. Tariku Beke, Co-ordinator of Abay Chomen District Irrigation Development Office; Mr. Alemayehu Dhaba, co-ordinator of irrigation extension office of the district, for their heart-felt cooperation in facilitating the necessary processes and for their unreserved willingness in providing the required secondary data for the study. Likewise, the farmers groups in the study area, the sample respondents, as well as the enumerators, Melkamu Bayisa, Gurmessa Keno, Shibiru Tafa and Getu Debisa, deserves special thanks for their unforgettable discharge of duty during the survey period with distinctive thanks to Melkamu Bayisa for his high commitment. I would like also to express my deepest thanks and appreciation to African Economic Research Consortium for its financial support for the study and research work. Acknowledgment also extends unreservedly to my father, mother, sisters, and brothers for their all-round support and moral encouragement. vi ABBREVIATIONS AND ACRONYMS ADEA Association for the Development of Education for Africa ADIDO Abay Chomen District Irrigation Development Office ATA Agricultural Transformation Agency CSA Central Statistical Agency DOoARD District Office of Agriculture and Rural Development EEA Ethiopian Economic Association ETB Ethiopian Birr FAO United Nations Food and Agricultural Organization GDP Gross domestic Product GTP Growth and Transformation Plan ha hectare ILRI International Livestock Research Institute Km2 Square Kilometer Kms Kilometers masl meters above sea level Mha Million hectare MoA Ministry of Agriculture MoARD Ministry of Agriculture and Rural development MoWR Ministry of Water Resources NGOs Non Governmental Organizations NPC National Planning Commission OLS Ordinary Least Square PSM Propensity Score Matching SSI Small Scale Irrigation TLU Tropical Livestock Unit vii TABLE OF CONTENTS DEDICATION iii STATEMENT OF AUTHOR iv BIOGRAPHICAL SKETCH v ACKNOWLEDGMENTS vi ABBREVIATIONS AND ACRONYMS vii LIST OF TABLES xi LIST OF FIGURES xii LIST OF TABLES IN APPENDICES xiii LIST OF FIGURES IN APPENDICES xiv ABSTRACT xv 1. INTRODUCTION 1 1.1. Background 1 1.2. Statement of the Problem 3 1.3. Research Questions 5 1.4. Objectives of the Study 6 1.5. Significance of the Study 6 1.6. Scope and Limitations of the Study 7 1.7. Organization of the Study 7 2. LITERATURE REVIEW 8 2.1. Definitions and Concepts 8 2.1.1. Definition of Basic Terms 8 2.1.2. Theory of Common-pool Resources 9 2.1.3. Management and Use of Common-pool Resources 10 2.1.4. Production and Productivity 11 2.2. Challenges and Opportunities of Irrigation Development in Ethiopia 12 2. 3. Irrigation Potential and Participation Situation 13 2.3.1. Irrigation Potential and Participation Situation in Ethiopia 13 2.3.2. Irrigation Potential and Participation Situation in Oromia Region 14 2.3.3. Irrigation Potential and Participation Situation in Horro Guduru Wollega 14 2.4. Theoretical Framework 15 2.4.1. Theoretical Framework for Participation Decision in Irrigation Practice 15 2.4.2. Theoretical Framework for Intensity of Participation in Irrigation Practice 16 viii TABLE OF CONTENTS (Continued…) 2.5. Empirical Studies on Determinants of Irrigation Practice 18 2.6. Studies on Impact of Participation in Irrigation 22 2. 7. Conceptual Framework 23 2.8. Methodological Framework 24 2.8.1. Methods for Participation and Intensity of Participation Analysis 24 2.8.2. Methods of Impact Evaluation 26 3. RESEARCH METHODOLOGY 30 3.1. Description of the Study Area 30 3.2. Sampling Method and Sample Size 32 3.3. Types of Data, Data Sources and Methods of Data Collection 33 3.4. Methods of Data Analysis 34 3.4.1. Descriptive Statistics 34 3.4.2. Econometric Model Specification 35 3.4.2.1. Participation models specification 35 3.4.2.2. Impact evaluation strategies 38 3.5. Description of Variables and Hypothesis 40 3.5.1. Dependent Variables 40 3.5.2. Explanatory Variables 40 4. RESULTS AND DISCUSSION 47 4.1. Descriptive Analysis 47 4.1.1. Socioeconomic Characteristics of Sample Farmers 47 4.1.1.1. Demographic characteristics 47 4.1.1.2. Social and human capital 48 4.1.1.3. Asset holding/Economic characteristics 49 4.1.1.4. Institutional characteristics 52 4.1.1.5. Physical characteristics 52 4.1.2. Types