Impacts of Urban Expansion on Welfare of Expropriated Peri-Urban Communities of Hossana Town, Southern Ethiopia

As demand for land increased over time, urban centers have been physically expanding their boundaries to surrounding rural and peri-urban areas by including additional land where people did base their lives in agriculture. Therefore, this study was conducted to evaluate the impacts of urban expansion on welfare of expropriated peri-urban communities of Hossana town, Hadiya Zone, Southern Ethiopia by using propensity score matching method. Household survey research design with semi-structured interview schedule for a sample of 369 households (clustered in to 148 expropriated and 221 non-expropriated) was conducted. Qualitative and quantitative data were collected from primary and secondary sources. In addition to household interview schedule; focus group discussion, key informant interview, transect walk, case story and personal observation were used as data collection tools. After propensity score matching, the per capita income of non-expropriated households is significantly greater than expropriated households. Therefore, urban expansion has significant impact on welfare of expropriated peri-urban local communities. Hence, it was suggested that rehabilitation programs should be developed to support the expropriated households to enable them appropriately use their cash compensation and remaining asset and prepare them for the new environment.