Abstract:
Rural poverty has a complex, interlocked and multi-dimensional phenomenon.Multistage
sampling technique was used and 367 households were selected using simple random sampling
method from three sampled Kebeles. The design and implementation of effective measures to
reduce household poverty in the district should depend on in-depth understanding of magnitude
and determinants of poverty. This study is sought to address these issues by assessing location
specific demographic, socio-economic and institutional factors that influence poverty of rural
households in the district. In this regard, this study was conducted to identify and analyze the
magnitude and determinants of rural household poverty in Ebinat district of Amhara national
regional state of Ethiopia. The logit model was fitted to identify determinants of poverty. In this
case the probability of a household being poor is taken as a dependent variable and the set of
demographic, socio economic and institutional variables were taken as explanatory variables.
Consumption expenditure and Cost of Basic Need methods were used to measure poverty and
construct poverty line, respectively. Based on this the food poverty line was 3752.20 Birr and the
total poverty line was 4127.42 Birr per AE per year, out of the 367 surveyed households, 56.67
percent were found to be poor. The FGT poverty index was employed to examine the extent and
severity of poverty. It indicates that 56.67 % of the sample households live below poverty line
with poverty gap and poverty severity index of 0.1817 and 0.0835, respectively. The logit
estimation result revealed that family size and fertilizer expense have positive and significant
effect on the probability of a household being poor. Age and education level of the household
head, land size, livestock holding in TLU, farm and off-farm income per AE and saving culture
were found to have theoretically consistent, statistically significant and negative effect on
poverty. The binary logit estimates shed light on factors behind the persistence of poverty and
indicates that rural poverty is strongly linked to entitlement failures and understood as lack of
household resource endowments to crucial assets such as land, human capital, livestock holding
and saving accumulation linked with high dependency on chemical fertilizer. This study finding
suggests targeted intervention on reducing inorganic fertilizer expense and encurage use of
organic fertilizer, developing saving culture and improving agriculture productrivity as useful
policy instrument in order to reduce rural household poverty and to reach the poorest of the
poor.