Assessment of rural-urban economic linkage: the case of Hosanna Town and its hinterland

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Date

2012-06

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Addis Ababa University

Abstract

Rural and urban peoples are becoming increasingly multidimensional and mull i-local in present times and rural-urban linkages are receiving beller altention in the regional and local economic development discourse. However, Ethiopia is characterized w ith weak rural - urban linkage due to different factors. Moreover, there is research gap in thematic and spatial coverage. The main objective of this research is 10 assess the existing nature of rural - urban economic linkage in Hosanna town and ils hinlerland. To achieve the objectives, data were collected from rural and urban hous eholds, traders, and officers through questionnaires, interviews and observations. The gathered data were analyzed using desc riptive statics frequencies, ranks and qualitative analysis. Findings of the study indica led difference between hinterland farmers and th eir urban coun terparts to recognize and idenlify pertinent challenges that hamper to rural - urban linkage. The hinterland farmers indicated shorlage of land, subsistence agriculture, lack of market facilities and shortage of farm inputs as main challenges. Urban households on the ot her hand identified, price fluctuation , lack of market facilities, inflation, lack oj agro -processing industries and subsistence na t ure of agriculture as a main challenges. The study has identified weak and partial backward linkage while forward production marketing linkage is almost non -exis tent. The only linkage found relatively strong is consumption linkages. The hinterlands have shown limited marketing linkages in the sales of rural products in the town. The main products brought to the town are wheat and teff. In addition, finical linkage is very weak and informal financing is the most important in the s tudy area. Among ten variables, shortage of land is the first problem Ihal affecls agricultural production in the hinterland. Finally, it is recommended that a joint effort is needed from all concerned stakeholders to mitigate the challenges in order 10 promole mutual development in the sludy area

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Keywords

urban economic linkage:

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