Multidimensional Poverty Dynamics and its Determinants in Peri-Urban Areas of Amhara National Regional State: Evidence from Dessie, Kombolcha and Kemise Towns

Abstract

The access to affordable and adequate housing and land in peri-urban areas of the Amhara National Regional State of Ethiopia has become a pressing issue, leading to illegal land sales and displacement of peri-urban farm households. This study aims to assess the state of multidimensional poverty dynamics and its determinants in peri-urban areas, specifically in Dessie, Kombolcha, and Kemise towns. A total of 384 households were surveyed for this study, with an equal division between those who were displaced through compensation and those who were displaced through the unauthorized sale of land. This study examines the extent of multidimensional poverty among peri-urban farm households using the multidimensional poverty index. Two limit Tobit models were employed to identify the factors that contribute to poverty in the study area. The decomposition results of the multidimensional poverty index indicate that households who were displaced through compensation were multidimensionally poor compared to those who were displaced through the unauthorized sale of land. Moreover, results of the two-limit Tobit model revealed that family size, access to job opportunities, regular household income, landholding size, access to remittance, and access to credit were the major factors that determine poverty for peri-urban farm households displaced through compensation in the study area. To address this issue, the government should allow private ownership of land, enabling farmers to sell their land at market value and potentially reducing multidimensional poverty and improving their living standards. Additionally, the government should strive to create job opportunities for peri-urban farm households by providing support for their engagement in various urban farming activities.