Impacts of Large-Scale Agricultural Investment on the Livelhoods of the Local Community: The Case of Bambasi Woreda, BGRS

Abstract

The study aims at examining the impacts of large-scale agricultural investment on the livelihoods of the local communities in Bambasi Woredas of the BGRS. The study areas are from the purposefully selected Kebeles of Wombaselam, Garabichwollega, and Shobergushi of Bambasi woreda, where large-scale agricultural investment projects on privately owned land are the targets. The data is collected through structured and semi-structured interviews, key informant interviews, focus group discussions, observations, and document review. The sampling was done using  multi-stage stratified random sampling method. The study's findings show that the average treatment employment opportunity created for household members is 0.13 for the treatment group and 0.01 for the control group, with non-significant results at the 1% probability level, and the temporary employment opportunity is 0.87 for the treatment group and 0.49 for the control group, with significant results at the 1% probability level. According to the outcome variable findings, there is a statistically significant difference between the total asset accumulation at the 5% probability level and the total household income at the 10% probability level. The impact estimate (ATT) is insensitive to unobserved selection bias, and the kernel matching (KM) with band width 0.1 is chosen because it completely satisfies all three criteria of the best match estimators.  According to the average treatment impacts on the treated, large scale agriculture investments have a negative influence on household asset accumulation and income.

Keywords: - Impacts, Large scale agricultural Investment, Livelihoods, Bambasi Woreda

DOI: 10.7176/JESD/14-3-04

Publication date: February 28^th 2023