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Its Nature and Effects on Rural Livelihood Diversification

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Its Nature and Effects on Rural Livelihood Diversification Rural-Urban Linkage of Adwa Town and its Surrounding Rural Areas: Its Nature and Effects on Rural Livelihood Diversification Mewael Berhane A Thesis Submitted to The Department of Geography and Environmental Studies Presented in Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Geography and Environmental Studies Addis Ababa University Addis Ababa, Ethiopia June 2016 iii Rural-Urban Linkage of Adwa Town and its Surrounding Rural Areas: Its Nature and Effects on Rural Livelihood Diversification Mewael Berhane A Thesis Submitted to The Department of Geography and Environmental Studies Presented in Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Geography and Environmental Studies Thesis Advisor: Tegegne Gebre-Egziabher (Professor) June, 2016 Addis Ababa iv ABSTRACT Rural-Urban Linkage of Adwa Town and its Surrounding Rural Areas: Its Nature and Effects on Rural Livelihood Diversification Mewael Berhane Addis Ababa University, 2016 This study attempts to assess the nature of RULs and its effects on rural livelihood diversification of Adwa town and its surrounding. In the first stage, four Tabias were chosen purposively to represent different characteristics (irrigation practices, experience stone extraction, have industries and natural resource conservation). Random sampling was mainly used to select the research subjects. Household sample survey, FGD and field observation were the principal methods used to solicit the primary data. Quantitatively, statistical tools such as Chi-square, ANOVA and regression were employed. SLF was adopted to holistically examine the overall well-being of rural households in relation to the RULs. The findings of the study show that the production linkages were very weak except for the backward production linkage which was reflected mainly in the use of inputs. The forward production linkage was almost missing in the study area since none of the households sold their agricultural produce to agro-processing plants. However, a strong consumption linkage was observed as farmers tend to purchase goods and services from the town. The insufficient crop production had made the existing marketing linkage to be expressed only in the form of exchange of livestock, vegetables, honey and forest products. A considerable number of the rural households took loan and saved money in the town-based financial institution. This financial linkage was further strengthened through the remittances sent from the town. A household’s access to irrigation, livestock and beehive ownership, access to mobile phone, number of farm plots, age and distance from the town were found to be the most important determinants of the orientation as well as the magnitude of the marketing linkage. Similarly household head’s gender, family size, livestock ownership and number of farm plots were found to be the most important determinants of non-marketing linkage. The study found out that for most of the rural households, diversification is a necessity than a choice. Many of the households obtain more than 40% of their income from non-farm sources. Similarly, the poor (33.2%) were more beneficiaries from livelihood diversifications than their rich (22.6%) counterparts. About 62% of the poor have experienced a strong non-marketing linkage, which was by far higher than the rich (16.4%). Considerable numbers of households were able to improve their social and human capital as a result of the existing RUL. Therefore, the RUL was playing a crucial role in the livelihoods of the poor. The study found no visible difference between the poor and rich in the asset possession as the two have similar asset pentagon. Finally, the research recommended that urban oriented farming practices such as irrigation practices and honey production need to be strengthened. There is a need to further strengthen the existing financial linkages and non-farm skills to enhance livelihood diversification. Furthermore there is a need to forge forward production linkage as it provides opportunity as agro-processing industries exist in the town. Access to transport would strengthen the RUL. Key Words: Rural-urban linkage, Livelihood diversification, Adwa. v ACKNOWLEDGEMENTS First of all, I would like to thank the almighty God for He allowed me to go through this study. I would like to express my profound gratitude to my advisor, Professor Tegegne GebreEgziabher for his invaluable guidance, suggestions and corrections throughout the research work. I am also indebted to thank Aksum University for granting my PhD scholarship. My sincere thanks also go to Dr. Daniel G/Tsadik, Dr. Tsehaye G/Libanos, Fisseha Abraha, Michael Tarekegn, Setegn, Desawi Hdru, Development agents and Administrators of the Tabias and all respondents for their unreserved support during my study. More, I would like to pass my gratitude to faculty, staff members and classmates at the Department of Geography and Environmental Studies of AAU for their heartfelt cooperation and support while I was studying. All words of appreciation are reserved to my father Ato Berhane Mengesha for his endless support, thank you. Finally, I would like to pass my sincere thanks to Berkti (my life partner), Siem (my son) and W/ro Meselech (mother-in-law) who endured the boredom of loneliness and patience during my prolonged period of study. Many thanks also go to my mother, brothers, sisters and relatives, specially, Mekonen Mengesha, Araya Yohalashet and Konjit Girmay for their all rounded support. Mewael Berhane Mengesha vi Table of Contents List of Figures ......................................................................................... xii List of Tables .......................................................................................... xii Acronyms………………………………………………………………………………...xv CHAPTER ONE ....................................................................... 1 INTRODUCTION ..................................................................... 1 1.1 Background of the Study ........................................................................................1 1.2 Statement of the Problem .......................................................................................4 1.3 Objectives of the Study ..........................................................................................6 1.4 Research Questions ................................................................................................7 1.5 Significance of the Study .......................................................................................7 1.6 Scope of the Study .................................................................................................8 1.7 Organization of the Dissertation .............................................................................8 CHAPTER TWO ...................................................................... 9 LITERATURE REVIEW ............................................................ 9 2.1 Rural-Urban Linkages ............................................................................................9 2.1.1 The Concept of Rural-Urban Linkage ..............................................................9 2.1.2 Factors Affecting Rural-Urban Linkages ....................................................... 12 2.1.3 Livelihood and Rural-Urban Linkages ........................................................... 14 2.2 Conceptual Framework ........................................................................................ 17 2.3 Role of Towns in Rural-Urban Linkages .............................................................. 22 2.4 Rural-Urban Linkages in Ethiopia ........................................................................ 24 2.4.1 Domains of Policy Facilitating Rural-Urban Linkages ................................... 27 2.5 The Sustainable Livelihoods Framework .............................................................. 29 CHAPTER THREE .................................................................. 34 THE RESEARCH METHODOLOGY ........................................... 34 3.1 Research Approach .................................................................................................. 34 3.2 Research Design ...................................................................................................... 35 3.3 Sampling Method and Sample Size .......................................................................... 36 3.4 Method of Data Collection ....................................................................................... 38 vii 3.4.1 Type and Source of Data .................................................................................. 38 3.4.2 Data Collection Techniques.............................................................................. 38 3.5 Measuring Rural-Urban Linkage Index .................................................................... 41 3.6 Data Analysis .......................................................................................................... 42 3.7 Validity and Reliability of Data and Research Process ............................................. 47 3.8 Ethical Considerations ............................................................................................. 48 CHAPTER FOUR .................................................................... 49 DESCRIPTION OF THE STUDY AREA AND BACKGROUND OF THE RESPONDENTS ..................................................................... 49 4.1 Description of the Study Area
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