Alemu, Tekie(Dr.)Seyoum, Abrham2021-07-242023-11-042021-07-242023-11-042006-07http://etd.aau.edu.et/handle/123456789/27330This thesis is focused on evaluating the effects of irrigation development in Banja Woreda on poverty and income distribution. Using multivariate analysis, the determinants of rural income has been assessed. To avoid the problem of omitted variables that creates inconsistency in estimation, the fixed effects model has been employed. The researcher has also used Gini coefficients to evaluate the impact of irrigation on income distribution. From the study, it was found that our key variable, irrigation, is a significant determinant of total income of rural households. Hence, using the simulation Famework, irrigation has been witnessed to have a greater contribution in reducing poverty incidence in the study area. In addition to this, the signs and significance of coefficients of other important variables such as dependency ratio, household size and proportion of output affected by negative shocks were found as expected. Moreover, income of households that is attributable from irrigated lands was found influential in abating income inequality among rural households in the study area. Thus, continued investment in new irrigation projects and maintenance of existing systems in Banja Woreda will help to attain the government's rural welfare improvement goals. Moreover, as reducing poverty and decreasing inequality both have growth-enhancing effects; irrigation investment could have an added benefit. Therefore, Irrigation investment in rural Banja Woreda appears to be an investment that can lead to both growth and equity.enEvaluating the Effects of IrrigationPoverty and InequalityThesis