Determinants of Urban-Rural Linkage for Local Development: The Case of Tulu Bolo Town and Its Surrounding Rural Areas, Oromia, Ethiopia
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Date
2020-06
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Addis Ababa University
Abstract
The objective of this study is to examine determinants of urban-rural linkages for local
developments in Tulu Bolo Town and its surrounding rural areas. To attain this objective, the
required data was collected from primary and secondary sources using survey questionnaire and
key informant interviews. The sample consisted of 235 households‟ selected using random
sampling method and purposive sample. Both descriptive and econometrics analysis were
employed to meet the objective of the study. The result from the descriptive analysis indicates
that, most of the linkages that exist in the study area are sectorial linkages and spatial linkages. A
spatial linkage in the study area shows flow of goods, money, and technology and information
linkages. Sectorial linkages are the connection between agriculture (crop production, livestock
production) and manufacturing (use of agricultural inputs such as fertilizer, improved seeds,
herbicides and pesticides) linkages. The nature and type of these linkages are affected by factors
related to infrastructure, subsistence nature of production, lack of market information, lack of
guideline and organized planning, and low purchasing power of most of the residents. Urbanrural linkages are energetic for local development in terms of income and wealth generation,
economic activities diversification, and increase opportunities for employment; improve
wellbeing and livelihood of the study area.
After endogeneity problems among different factors are detected, logit regressions were run to
identify important determinants. The results revealed that sex of the respondents, land owned,
Access to credit, access to infrastructure facilities and distance have significant and positive
(more) influence on the determinant of urban-rural linkage for local development. However,
family size, market availability and livestock owned have significant and negative impact on the
determinant of urban-rural linkage for local developments. Accordingly, the study recommends
that the Tulu Bolo Town and Rural administration, Oromia regional state and Federal
government need to develop an integrated URLs program in collaboration with stakeholders so
as to encourage mutual development of urban and rural areas. Hence, to enhance urban-rural
linkages in the study area, it is essential to take measure on the factors that hinder mutual
development of both urban and rural areas.
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Keywords
Determinant of Urban-Rural Linkages, Local Development, Logit.