THE IMPACTS OF URBAN EXPANSION ON LIVELIHOOD INCOME OF PERI-URBAN SMALLHOLDER HOUSEHOLDS: THE CASE Of BUE TOWN ADMINSTRATION

ABSTRACT<br> The study aimed to examine The Impacts of Urban Expansion on Livelihood income of Peri-Urban Smallholder Householdin case of bue town administration.descriptive and explanatory researchdesign was used to analyze the data. Among the probability techniques multistage sampling techniques was used to select the study area and sample respondents.Amixed type of research method i.e. both the quantitative and qualitative research method were used.The total sample size of the study was 237 respondents determined by using Yamane (1967) sample size determination formula n=N/1+N(e)². In the study both primary and secondary data sources were used and questionnaires, interview were used. Both Econometrics and Statically models were used to analyses this study Socio economic and demographic characteristics of the respondent households were analysed by descriptive statistics, to investigate the impact of Pre-urban expansion on household income was analysed by PSM model and The determinants of Peri-urban expansion (factors that affect Peri-Urban Expansion was analysed by Binary logistic regression Model,logit regression shows that displacement status was influenced by education, family size, sex, land size, age,, consumption, job opportunity and livestock.The propensity score matching estimation result shows that, non-displacement of households have gained more income than displacement households’. The effect of displacement on household’s livelihood outcome has a negative. Therefore The PSM result indicates that non-displacement of households have gained on average Birr 20,964 more income than displacement households’. The government urban expansion program should take in to account that displaced smallholder farmers from their land should creating best alternative means livelihood strategies and creating better economic opportunity in areas need be reconsidered because land size is the main source of livelihood outcome difference.