Impact of Urbanization on Rural Livelihoods: Evidence from Peripheral Areas of Adama City, Oromia Region, Ethiopia
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Date
2024-04
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Addis Ababa University
Abstract
Urbanization poses significant challenges for public policy in developing countries, particularly in Sub-Saharan Africa, where rapid growth rates have been observed. This study aims to investigate the impact of urbanization on the livelihoods of farm households in the Adama Woreda of Oromia Regional State. The study adopts a pragmatic philosophical approach to examine the socio-economic impacts of urbanization on farm households in the study area, with a focus on practical implications for urban policy in Sub-Saharan Africa. The study utilizes a comparative analysis of two groups of farm households based on their proximity to the urban center. Families residing close to urban areas are categorized as the treated group and are compared to households located far away. A total of 397 households were selected for the study using a multistage sampling technique, with 148 households near the urban center and 249 households situated significantly far from the urban area. Descriptive and inferential data analysis techniques are employed, including the use of Geographic Information System (GIS) and remote sensing tools to extract relevant information on land use and land cover changes in the study area from 1986 to 2022. Furthermore, the study applies ordered logistic regression, multinomial logistic regression, and propensity score matching models to analyze the perceived effects of urbanization on rural farm households near urban areas, the effects of urbanization on their income diversification, and the overall impact on the consumption expenditure of households near urban areas, respectively. The findings reveal significant changes in land use and land cover in the study area over the examined period, with a substantial increase in built-up areas by 4750 hectares and a decrease in agricultural land by 3033 hectares. Urbanization is identified as a key factor contributing to these changes, leading to divergent perceptions among farm households in the study area. While those located further away perceive urbanization positively with mean value of 3.25, households near urban centers hold negative perceptions with mean value 2.47. The ordered logistic regression analyses indicate that distance from the urban center; educational status, family size, and farmland availability significantly influence the perception of urbanization by farm households near urban areas. The finding shows that increasing urbanization by one unit causes a decrease in farming activities by 40%, and farming and non-farm activities increase by 35%. The result also indicated that households with higher-aged and larger family sizes were more likely to diversify their income to unskilled non-farm activities. Furthermore, the research reveals that urbanization limits the income-generation capacity of farming households, necessitating their reliance on less remunerative non-farm income-generating activities. As a result, the average annual consumption expenditure per adult equivalent for rural farm households near urban areas is 2562.55 ETB, indicating a lower expenditure compared to rural households residing far from urban areas. The findings of the study align with dependency theory, indicating an increasing economic reliance of rural households on urban areas, exacerbating disparities and fostering rural dependency. Additionally, these outcomes support the Impoverishment Risks and Reconstruction model of Cernea, which states that smallholder farmers evicted from their farmland are subject to acute poverty. In light of these findings, effective land management policies and a comprehensive understanding of the impacts of urban growth on rural farm households are crucial. Policymakers and stakeholders should prioritize the concerns and perceptions of rural farmers when planning urbanization projects and emphasize the need for policies that mitigate farmland loss while addressing socioeconomic factors affecting farmers in the region. This approach is essential to achieve sustainable food security and poverty reduction.
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Keywords
Impact, Multinomial Logistic Regression, Perceiption, Propensity Score Matching, Rural Livelihoods, Urbanization