The Determinants of Multidimensional Poverty among Smallholder Rural Farm Households of East Wallaga, Ethiopia

Abstract

This study examines the determinants of multidimensional poverty among rural households in Ethiopia’s East Wallaga using a mixed method design and data from 394 stratified sampled, households. Multidimensional poverty was measured using the Alkire-Foster method, based on the global multidimensional poverty index dimensions with the addition of an asset ownership dimension and information and communication technology indicator. The incidence, intensity, and multidimensional poverty index were found to be 63.3%, 53.5% and 33.8% respectively. The regression results revealed that education, training access, livelihood diversification, community participation, and credit access are significantly and negatively associated with households’ multidimensional poverty. In contrast, being female-headed households, greater distance to markets, and higher dependency ratios showed significant and positive association. The findings demonstrate the importance of context-specific, multidimensional approaches in informing effective poverty reduction strategies beyond income-based measures. Therefore, integrated rural development strategies that enhance education, expand livelihood diversification opportunities, promote gender equity, and improve credit access are essential for addressing multidimensional poverty.