THE IMPACT OF URBAN EXPANSION ON PERI-URBAN FARMERS INCOME IN AZEZO TEDA SUB CITY ADMINISTRATION, GONDAR, ETHIOPIA

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.