Abstract:
This study investigated the impact of urbanization on peri-urban farmers income in Azezo Teda sub city
administration, Amhara region, Ethiopia. Agriculture is the dominant economic activity and the primary
source of incomes for AzezoTeda sub city administration peri-urban farm households. However, due to
urbanization, farmers have been forced to be displaced from their farm landholding system. There is a
huge gap to bridge between the urbanization targeted objectives and the reality that occurred in the
increment of farmers income. The objective of this study was impacts of urbanization on peri-urban
farmer’s income. A total of 384 sample households were selected through stratified and random
sampling in Azezo Teda sub city administration, Amhara region, Ethiopia in the year 2022. We used
households ‘net income as outcome indicators for household income. The impact analysis was
performed using endogenous switched regression model. On top of the econometric models, we also
analyzed descriptive and inferential statistics to describe different socioeconomic characteristics of
sample household. Accordingly, the outcome of endogenous switching regression modelshowed that the
mean of household net income was lower for displaced households than that of non-displaced
households. Based on the finding, it is recommended that appropriate compensation package that could
replace the resource base of evicted households should be pursued. Before displacement, livelihood
initiative like skill development, training and awareness should be given for families on peri-urban areas
to enhance them increase their income.
