The Role of Remittance and Return Migrants on Urban Growth and Rural Urban Linkage: The Case of Hosanna
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Date
2011-07
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Addis Ababa University
Abstract
lhe oiJject ive o(this study is to understand the remittance and returnees ' impact for grolllth
and mral urbanlinkage together lIIith the aim o{identi{ying the pal/ern and magnitude of
relll illance. lhis study lIIas conducted in Hosanna using methodological triangulation to
col/eel primw)' data. In this regard respondentsfor Survey questiannaire (40 remil/ed 30
retum ees and 90 non-migrants), FCD and In-Depth Interviellllvere selected using a mix of
IJllrl}(lsi ve. snowlwl! and stratified multistage ciuster sampling techniques.
l he st",ly/inding underlined that large amount of remittance is being injected in the economy
o('the town and the surrounding areas. The inflow remillance has been increasing as more and
lIIo re people emigrate to liSA. Although, flow pallern exhibits unevenness across seasons
(Illouths) oja year. the annualfigllre confirmed a rapid increase ofremillance both in terms 0/
the lIIa<~ nitude and pal/em offlolV. Concerning thejlolll channel, the study highlighted the
existence oj'in/imuality where remil/ance./i'om RSA most ojien reaches Ethiopia through
j!ocket oj travelers.
!legardio? the impact (~{ remil/ance and retuJ'/1 migrants, this study indicated remil/ance and
reillm migrants positively contributed for increase in both investment and consllll1j!tion in
general. Specifically the impact on housing construction, transportation sector and labour
.10pl?l), are positively af/ected by remil/ance and returnees activities. On the contrw)', the
illlpact on price 0/ products (in/lated price.I), inequality and dependence get 1IIorse due to
int mducl ion 0/ rem ill ance and retum migrants in to Hosanna 's economy. Regarding human
capi"" /imnation, the health itnpact of remillance and returnees activity found to be positive
Il' hill' the impact on education is remain inconclusive. This is because although remillance
induced/cul/ily lIIigration and hence beller education improved at primal)' education levels.
I.ess Ilositive side o{ stOi), comes as remittance induced filrther migration of youngsters by
gil'iog less incentive to continue their education above secondat)' level. More importantly
relllittollce and returnees activities have vel)' clear impact on Hosanna 's sprawl.
lhe stlldy indicated that the increased income /i'om remil/ance and return migrants increased
deolOnel/ilr consumption and investment, addressing this need in Hosanna obviously presumes
amting and/or strengthening linkages between the town and the hinterland. On the other
hand remittance and return migrants activity, and the asphalt road were the two main reasons
For the Dynamism of the town
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Keywords
Role of Remittance, Urban Growth