Place-Based Approach to Rural Development: Ethiopia in Context

Place-specific socioeconomic features are unique and, unlike first-nature geography, are shaped and reshaped by human and institutional interactions. In Ethiopia, however, policy thinking has not progressed much beyond first-nature geography, overlooking the multidimensional socio-spatial formations...

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Main Authors: Melkamu Tadesse Wazza, Seife Ayele, Berhanu Kuma Shano
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/13/3/61
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author Melkamu Tadesse Wazza
Seife Ayele
Berhanu Kuma Shano
author_facet Melkamu Tadesse Wazza
Seife Ayele
Berhanu Kuma Shano
author_sort Melkamu Tadesse Wazza
collection DOAJ
description Place-specific socioeconomic features are unique and, unlike first-nature geography, are shaped and reshaped by human and institutional interactions. In Ethiopia, however, policy thinking has not progressed much beyond first-nature geography, overlooking the multidimensional socio-spatial formations of rural areas. This study, based on nationally representative socioeconomic panel data from 2018/19 and 2021/22, used a place-based framework to explore the complex nature of rural development and its relationship with multidimensional, place-specific key determinants, namely rurality and entrepreneurial ecosystems. Indices for the key variables were developed by reducing their dimensions using Principal Component Analysis to measure multidimensional variables, including rural development, and undertake subsequent examinations. The study examines the effects of the key determinants on rural development using the Fixed Effects Instrumental Variables–Two-Stage Least Squares regression model, owing to endogeneity concerns with the key determinants. The study shows significant effects of both rurality and entrepreneurial ecosystems on rural development. It offers insights into the complex socio-spatial formations and explanatory power of rural contexts and contributes to the understanding of a place-based approach to rural development. The study also contributes to national and sub-national strategies to address rural challenges in Ethiopia and beyond.
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series Economies
spelling doaj-art-b47c427ea4bd4898a9db97a8b77ac0a02025-08-20T03:43:33ZengMDPI AGEconomies2227-70992025-02-011336110.3390/economies13030061Place-Based Approach to Rural Development: Ethiopia in ContextMelkamu Tadesse Wazza0Seife Ayele1Berhanu Kuma Shano2Department of Rural Development, Wolaita Sodo University, Sodo P.O. Box 138, EthiopiaInstitute of Development Studies, University of Sussex, Brighton BN1 9RH, UKDepartment of Agricultural Economics, Wolaita Sodo University, Sodo P.O. Box 138, EthiopiaPlace-specific socioeconomic features are unique and, unlike first-nature geography, are shaped and reshaped by human and institutional interactions. In Ethiopia, however, policy thinking has not progressed much beyond first-nature geography, overlooking the multidimensional socio-spatial formations of rural areas. This study, based on nationally representative socioeconomic panel data from 2018/19 and 2021/22, used a place-based framework to explore the complex nature of rural development and its relationship with multidimensional, place-specific key determinants, namely rurality and entrepreneurial ecosystems. Indices for the key variables were developed by reducing their dimensions using Principal Component Analysis to measure multidimensional variables, including rural development, and undertake subsequent examinations. The study examines the effects of the key determinants on rural development using the Fixed Effects Instrumental Variables–Two-Stage Least Squares regression model, owing to endogeneity concerns with the key determinants. The study shows significant effects of both rurality and entrepreneurial ecosystems on rural development. It offers insights into the complex socio-spatial formations and explanatory power of rural contexts and contributes to the understanding of a place-based approach to rural development. The study also contributes to national and sub-national strategies to address rural challenges in Ethiopia and beyond.https://www.mdpi.com/2227-7099/13/3/61socio-spatialplace-basedruralityentrepreneurial ecosystemFE-2SLS
spellingShingle Melkamu Tadesse Wazza
Seife Ayele
Berhanu Kuma Shano
Place-Based Approach to Rural Development: Ethiopia in Context
Economies
socio-spatial
place-based
rurality
entrepreneurial ecosystem
FE-2SLS
title Place-Based Approach to Rural Development: Ethiopia in Context
title_full Place-Based Approach to Rural Development: Ethiopia in Context
title_fullStr Place-Based Approach to Rural Development: Ethiopia in Context
title_full_unstemmed Place-Based Approach to Rural Development: Ethiopia in Context
title_short Place-Based Approach to Rural Development: Ethiopia in Context
title_sort place based approach to rural development ethiopia in context
topic socio-spatial
place-based
rurality
entrepreneurial ecosystem
FE-2SLS
url https://www.mdpi.com/2227-7099/13/3/61
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AT seifeayele placebasedapproachtoruraldevelopmentethiopiaincontext
AT berhanukumashano placebasedapproachtoruraldevelopmentethiopiaincontext