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Analysis of Poverty Exit Time and Pathways out of Poverty: evidence from Gozamn District of East Gojjam Zone, Ethiopia


Estimation of poverty exit time and identification of the pathways out of poverty are imperative to map the progress of Ethiopia towards achieving numeric target of millennium development goals (MDGs) of halving extreme poverty and hunger by 2015. Having noted that, this study was conducted in Gozamn district with specific objectives of estimating the average time needed to exit poverty and identifying the pathways out of poverty. The study made use of primary data collected from 120 sample rural households using structured interview. To this end, the CBN approach of setting absolute poverty line was used and the estimated poverty line was found to be ETB 3650.75 per adult equivalent per year. Results of the FGT poverty index revealed that about 49 % of the sample rural households live below poverty line with 9.5% and 3.1% poverty gap and poverty severity, respectively. Poverty Exit Time Index was used to estimate the average time needed to exit poverty. Accordingly, it takes, on average, 4.4 years for the poor rural household to exit poverty provided that the 6.4%GDP per capita growth rate per year continues. Econometric model result of pathways out of and into poverty indicated that diversification, education, rain-fed and irrigated land holding, livestock ownership, oxen ownership, off-farm income, credit utilization and frequency of extension contact are found statistically significant and negatively related with rural poverty indicating that they are pathways to exit out of poverty whereas family size alone is positively related with rural poverty implying that it is the pathway leading households into poverty. Hence; promoting equitable economic growth, diversified livelihood, expanding irrigation technologies, looking for land productivity enhancing technologies, fostering rural-urban linkages, off-farm employment, promoting research-extension-farmer linkage, adult education and family planning are indispensable policy interventions identified as the pathways out of poverty to better target poor rural households and realizing poverty free households provided that they are implemented in an integrated way.

Corporate Author: 
Ethiopian Economics Association (EEA)
Ethiopian Economics Association (EEA)
Primary Descriptors: 

rural poverty, average exit time

Secondary Descriptor: 


Geographic Descriptors: 
Ethiopia, East Gojjam Zone, Gozamn
Cataloge Date: 
Broad Subject heading: 
Call Number: 
330.963 PRO 2017
Serial Key Title: 
Proceedings of the Fourteenth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2017-06-02 00:00:00
Conference Place: 
Addis Ababa, EEA Multi-purpose Building Conference Hall
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: 
Thematic area: 
Agriculture, Environment and Social Sector Related Topics
Conference date: 
July 21 – 23, 2016