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The main intent of the Villagization program is to collect a scattered settlement pattern of rural populations onto a nucleated form of villages to sustainably supply rural communities with social and economic infrastructures. so that they can improve their income which helps the communities to overthrow rural poverty and chronic food insecurity and ensure the sustainability of the livelihood and food security in rural areas. Thus, this study was aimed at analyzing the impacts of villagization program on households’ income level in Gog district, Gambella region, western Ethiopia. To achieve this objective primary and secondary data was collected from both villagized and non-villagized households in the study area which has been analyzed both by descriptive analysis and econometric models. Both the descriptive statistics and the propensity score matching (PSM) results indicated that participation in villagization program has brought about a significant and positive effect to villagized households.In this aspect, the descriptive statistics revealed that villagized households have higher gross annual income, improved access to school, increased the gross enrollment rate, increased access to health and sanitation facilities and increased accessibilities to infrastructure facilities (all-weathered roads, potable drinking water) as compared to the non-villagized households. The propensity score matching (PSM) results confirmed that the existence of a positive and additional annual gross income of 6351 birr for the villagized households as compared to the non-villagized households. This indicates that, on average, villagized households earn 22% more gross annual income as compared to the non-villagized households.Besides, the maximum likelihood estimate of the logit model result shows that, participation in villagization program was significantly and positively influenced byfamily size, dependency ratio, perception of the household head towards the program,education status of the household head and access to irrigation whereas livestock holding (TLU): rain-fed farm size and participating in off-farm activities influenced participation in villagization program negatively. Generally, the program has a major contribution to the socioeconomic and infrastructure improvements in rural areas, particularly annual income. Thus, the sustainability of the program has to be enhanced for the contribution to sustainable development of rural communities.
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