| dc.description.abstract |
Poverty remains one of the most critical development challenges globally, particularly in low
income agrarian countries such as Ethiopia, where rural livelihoods depend heavily on
agriculture and multidimensional deprivation remains widespread. Although previous studies
have examined the welfare effects of agricultural commercialization, most have relied on
income-based poverty measures, conventional regression approaches, or geographically
limited data, with limited attention to multidimensional poverty, spatial heterogeneity, and
causal inference. This dissertation addresses these gaps by examining the causal impact of
crop commercialization on multidimensional poverty among rural households in Ethiopia
using nationally representative data from the fourth round of the Ethiopian Socioeconomic
Survey (ESS 2018/19). The study analyzed 2,714 rural households nested within 59
administrative zones, integrating household, cluster, and spatial information. Multidimensional
poverty was measured using the Alkire–Foster framework based on five dimensions and
sixteen indicators covering nutrition & health, education, living standards, rural livelihoods &
resources, and risk. A range of advanced statistical methods was employed, including
generalized linear mixed models, multilevel spatial models, Targeted Maximum Likelihood
Estimation (TMLE), multilevel causal mediation analysis, generalized propensity score
methods for multiple treatments, and causal forest machine learning algorithms. The findings
show that 47.8% of rural households were multidimensionally poor, with living standards
contributing the largest share of deprivation. Poverty was disproportionately concentrated
among subsistence-oriented and female-headed households, with significant spatial clustering
across administrative zones. Across multiple modelling approaches, crop commercialization
was consistently associated with a statistically significant reduction in multidimensional
poverty. TMLE combined with machine learning and ensemble methods produced the most
efficient and least biased estimates. Commercial-oriented households had a 3.56 percentage
point lower probability of multidimensional poverty than subsistence households, while semi
commercial households experienced smaller gains. Mediation analysis indicated that
household savings partially explained the poverty-reducing effect of commercialization.
Heterogeneity analysis further revealed stronger benefits among households located closer to
markets and roads, with larger landholdings and younger household heads. The results suggest
that crop commercialization can serve as an effective pathway for reducing rural
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multidimensional poverty, but its benefits depend on complementary investments in rural
infrastructure, financial inclusion, education, and market access. By integrating causal
inference, spatial statistics, and machine learning, this dissertation provides robust and policy
relevant evidence to support targeted and place-based rural development strategies in Ethiopia. |
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