The Estimation of The Impact of Rural Road Investments On SocioEconomic Development a Case Study on Nono Benja Wereda in Jimma Zone, Oromiya Region
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Date
2017-08
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Addis Ababa University
Abstract
Roads are constructed to improve the socio-economic status of the beneficiaries. However, the
socio-economic benefits of rural roads in Ethiopia had not been critically examined. Hence, the
present study aimed to examine the socio-economic benefits of rural roads by focusing on NonoBenja
rural
road of
Jima
Zone.
The study employed quantitative research methodologies to examine the socio-economic benefits
of the road. In doing so, household survey questionnaire was developed and data were collected
from 196 individuals from three kebelas. In addition, data were collected from different
stakeholders for RED Model was computation. For the purpose of analyzing the questionnaire
data frequencies, percentage, mean, SD, t-test and ANOVA were computed using SPSS. Internal
rate of return (IRR) and net present value(NPV) were computed using the RED Model.
The study had revealed that the constructed road had economic benefits to the households in the
area. This is manifested through its positive agricultural impacts, creating job opportunities and
improving residents’ access to markets. The RED model results had also revealed that the
constructed road is the best option among the four options considered for it is characterized by
higher net present value and internal rate of return. It was also found that the constructed road
had improved the social benefits of the residents in the surrounding area i.e. it had increased
social interaction and the mobility of the residents and has improved access to education and
health. The RED Model results had also revealed that the constructed road is the one with the
best social benefit to population served. One important finding worth mentioning here is that the
constructed road was found to benefit urban residents and those who didn’t have schooling.
It is then concluded that rural roads in Ethiopia do have socio-economic benefit for those who
have the access to the road. Lastly it is recommended that concerned bodies need to examine the
socio-economic impact of rural roads, not only before roads are constructed but also right after it
is completed and after certain period of time.
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Keywords
Impact of Rural Road Development, Socio-economic Benefits, NPV, IRR