Factors affecting poverty magnitudes in Horro guduru Wollega zone of Jimma geneti woreda, Ethiopia: An econometric analysis

Poverty is multi-faceted issue and deep rooted in Ethiopia. The country is among the world's poorest nations in terms of Human Development Index. Poverty in Ethiopia is predominantly a rural phenomenon. This research was under taken at Jimma Geneti district, Horro Guduru Wollega Zone, with the objectives of identifying the severity, levels and determinants of rural poverty in the area and analyzing the determinants in the study area. The data were collected from primary and secondary sources by multi stage sampling techniques applying sample size calculation formula. Statistical techniques like frequency, percentage, ratio analysis, and econometric techniques like binary Logit model by Stata software, the Foster-Greer and Thornback mathematical model, were used. The researcher found out that the total poverty line for the area were Birr 3781.00 (national poverty line, Ethiopia 2010/11) per adult per year. The incidence, depth and severity of rural poverty calculated for the area were 31.74%, 24.18% and 5.85% respectively for the total poverty line. Based on the dependent variable poverty in terms of consumption expenditure some independent variables that are significantly determines the rural household poverty at 1%, 5% and 10% with their significant effect, when one unit change in independent variables, the dependent variable poverty changes by the amount of the coefficient of independent variables, for each of them; the other variables held constant. Among the independent variables that significantly determining and challenging the rural households of the study area were Sex, dependency ratio, agricultural marketing system, climate change, land holding, flood, source of water, age, age square, marital status, education and government and non-government status of rural households were the most but not the last. From the study it can be concluded that to minimize the magnitude of rural poverty in Jimma Geneti district and determinants that affect rural households any development endeavors that aim at improving the living standards of the Jimma Geneti district should focus on the correlates of rural poverty of the area, due policy and development consideration.