Analyzing Determinants of Rural Poverty in Kuyu Woreda, North Shoa, Oromia Regional State, Ethiopia

Abstract

The objective of this study was assessing the level of rural poverty and exploring associated factors causing poverty in North Shoa, Kuyu Woreda. Relevant data were collected through questionnaires, key informants, personal observation and reviews of document. The generated data were analyzed through FGT index, logistic regression and measure of dispersion. The local poverty line was identified as 7.66 Ethio-birr per individual per day.  Accordingly, Majority of rural households were below local poverty line. Incidence of households to poverty is high (0.648). The amount of income required to remove the poor out of poverty is 1.72 birr per individual in day in kuyu woreda. The severity of poverty  was 0.05 which represents the poorest among the poor from households .The result of the logistic regression model indicates that Household heads that did not educated are almost five times as likely to be poor than those who have at least educated. Household who didn’t own title of farm land are almost one times as likely to be poor relative to those who titled to have farm land. Household who have no access to extension service are almost one times as likely to be poor   than who accessed to extension service. Household who used hoeing farm land for crop production are eight times likely to be poor than who do not. The age of the household heads sampled was also found to be correlated to the poverty status indicating that the household head below 18 years were likely poor. Finally, it was recommended that the detail of question like where is poverty located? In what forms poverty exists? Who does it affects? In the kuyu woreda should be added and get attention in research and development to reduce poverty in the study area.

Keywords: Rural poverty, Prevalence of poverty, Severity of poverty, FGT index, logistic regression