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Urbanization and Vulnerability in Africa: evidence from Farm Households in Peri-urban Ethiopia


Urban areas of developing countries are expanding rapidly causing high demand on land in the urban peripheries. In Ethiopia, rural villages in peri-urban areas incorporated to urban administrations through land expropriation and legislation to provide land for urban expansion. This study presents empirical evidence on the effect of such policy on welfare of the affected farm households in Northern Ethiopia using survey data collected for this purpose. The survey took place five years post-incorporation where local governments compensated the farmers with substantial amount of cash relative to their annual farm income. The findings show that physical asset (land and livestock) holdings and consumption expenditure of the affected farm households have significantly reduced. The results suggest that urban-reclassified farm households are incapable to smooth their consumption. The negative effects, on asset holdings and consumption expenditure, are consistent with the perceived view of difficulties to accustom new institutions and in livelihood transitions. This study supports broader investments on institutions to address the vital challenges of rural to urban livelihood transitions and to embrace benefits of urbanization.

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

Assets; Consumption

Secondary Descriptor: 

Vulnerability;  Land Expropriation

Geographic Descriptors: 
Africa; Ethiopia(urban)
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