Zelalem Gebeyehu, Jema Haji, Tefera Berihun and Adisu Molla
Abstract
The purpose of this study was to examine the impacts of urban expansion on welfare of peri-urban farmers in Metropolitan Cities of Amhara National Regional State, Ethiopia. A total of 430 sample households were selected through multi-stage sampling technique. Out of the total samples, 183 (42.56%) were displaced while 247 (57.44%) were non-displaced farm households. Propensity score matching model was used to estimate the impact of urban expansion on peri-urban farm householdsââ¬â¢ welfare. Outcome variable to estimate the impact was welfare of household which was measured by a combined asset index and household consumption expenditure per adult equivalent. The result of the average treatment effect on the treated revealed that the displaced farm householdsââ¬â¢ consumption expenditure per adult equivalent was reduced by 6688.03 Ethiopian Birr and a combined asset index of the displaced farm householdsââ¬â¢ diminished by 0.022 as result of urban induce expansion.